Early Edition with Kate Hawkesby

New Zealand’s looming recession is tipped to be twice as deep as previously thought, with Kiwis being warned to prepare for a tough rest of the year. The bleaker forecast, from economists at ASB, comes as food prices rise at their fastest annual rate in more than 30 years and many struggle to afford the basics. ASB is predicting a 2 per cent contraction to gross domestic product (GDP) by early 2024, which is double the 1 per cent economic shrink that the bank forecast in its last quarterly update. And the country’s expected recession is likely to set in earlier than expected, according to the latest ASB Economic Forecast released today, with GDP falling 0.6 per cent in the December 2022 quarter. Wellington university student Aidan Donoghue said he has hardly bought any fruit or vegetables in the last year. Photo / Mark Mitchell ASB’s chief economist Nick Tuffley said high-interest rates and inflation will continue to restrain consumer spending in the coming year, with homeowners feeling the strain and pain