New Zealand's economy sank into recession in the third quarter as activity dived far more sharply than expected and output in the prior quarter was slashed, a dire result that cements the case for more aggressive rate cuts.

New Zealand’s economy contracted much more than expected in the third quarter and the second quarter was revised lower, putting it into recession. The local dollar fell.

New Zealand’s economy suffered a deeper-than-expected recession in the second and third quarters as high interest rates curbed demand. The New Zealand dollar fell to a two-year low.

New Zealand's economy recorded a sharper-than-expected contraction in the July-September quarter, marking its second consecutive quarter of decline and confirming a technical recession. The 1 per cent fall in Gross Domestic Product (GDP) exceeded analysts' predictions of a 0.