Treasury: New Zealand's recession deepens

Special
Report: Global Financial Crisis

WELLINGTON, May 5 (Xinhua) -- New Zealand's Treasury predicted on Tuesday
that the country's recession deepened in the first quarter.

In its monthly update, the Treasury forecast that the Gross Domestic
Product shrank 1 percent in the first quarter, a sharper decline than any of the
four quarters of the recession to date.

The Treasury said data over the past month indicated that demand and output
contracted further in the first quarter.

It attributed the weakness to falls in household spending, business
investment and exports.

Growth estimates for New Zealand's trading partners are now well below
those contained in a previous update in December.

Official figures on the state of the economy in the first quarter are due
to be issued at the end of June.

The government's Budget report will be presented on May 28.