Economic Challenges in New Zealand

New Zealand is currently facing an economic recession, with a contraction of approximately 1% in the last recorded quarter, a situation that would raise alarms if it occurred in larger economies like the United States. The economy is predominantly service-oriented, yet agriculture and tourism are significant contributors, with tourism seeing heightened demand due to a weakened Kiwi dollar attracting foreign visitors. However, this influx has driven local prices up, particularly in housing, creating a strain on Kiwi residents who experience rising costs while earning less at the same time. Additionally, the migration of around 80,000 Kiwis in a single year, mostly young and skilled individuals heading to better job opportunities abroad, reflects the growing economic pressures felt within the country despite its economic strengths in agriculture and tourism.