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How Jacinda Ardern’s lockdowns have caused an even WORSE recession than feared

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how jacinda arderns lockdowns have caused an even worse recession than feared

New Zealand‘s strict COVID-19 lockdown has seen the nation plunge into recession for the first time in a decade.

The country, led by Prime Minister Jacinda Ardern, saw its economy shrink by a record 12.2 per cent in the June quarter.

The eye-watering figures, released on Thursday by Statistics New Zealand, are significantly more severe than Australia’s record seven per cent plummet during the same period. 

The figures are far worse the Westpac bank’s prediction of an 11.5 per cent decline and marked New Zealand’s first technical recession since the Global Financial Crisis in 2009.

The second-quarter plunge followed a revised 1.4 per cent contraction during the first three months of 2020. 

The nation, led by Prime Minister Jacinda Ardern, saw its economy shrink by a record 12.2 per cent in the second quarter

The nation, led by Prime Minister Jacinda Ardern, saw its economy shrink by a record 12.2 per cent in the second quarter

The nation, led by Prime Minister Jacinda Ardern, saw its economy shrink by a record 12.2 per cent in the second quarter

The popular 'Eat Street' in Rotorua, New Zealand is seen empty during the COVID-19 lockdown

The popular 'Eat Street' in Rotorua, New Zealand is seen empty during the COVID-19 lockdown

The popular ‘Eat Street’ in Rotorua, New Zealand is seen empty during the COVID-19 lockdown

The reporting period, from April to June, happened in the middle of the country’s first lockdown when thousands of businesses were forced to close.

New Zealand went into a strict lockdown on March 25 and emerged from them on June 8 as part of an elimination strategy. 

Residents were ordered to stay home to prevent the deadly virus from spreading. 

Figures showed construction activity was down 26 per cent, manufacturing fell by 13 per cent, and household spending was down by 12 per cent when compared with the previous quarter. 

Stats NZ spokesman Paul Pascoe said the closure of New Zealand’s borders since March 19 had also had a huge impact of some sectors of the economy.

‘Industries like retail, accommodation and restaurants, and transport saw significant declines in production because they were most directly affected by the international travel ban and strict nationwide lockdown,’ he said.

‘Other industries, like food and beverage manufacturing, were essential services and fell much less.’

However, the 12.2 per cent figure was below the 16 per cent predicted by the government this week and fell well short of the 23.5 per cent forecast in the budget in May.

A relatively deserted Parnell Rise as Aucklanders return to level three lockdown on August 13, 2020

A relatively deserted Parnell Rise as Aucklanders return to level three lockdown on August 13, 2020

A relatively deserted Parnell Rise as Aucklanders return to level three lockdown on August 13, 2020

The Westpac bank is expecting Thursday's official figures to show an 11.5 per cent contraction for the June quarter - a level significantly more severe than Australia's record seven per cent plummet during the same period. Pictured is a restaurant in Wellington in June

The Westpac bank is expecting Thursday's official figures to show an 11.5 per cent contraction for the June quarter - a level significantly more severe than Australia's record seven per cent plummet during the same period. Pictured is a restaurant in Wellington in June

The Westpac bank is expecting Thursday’s official figures to show an 11.5 per cent contraction for the June quarter – a level significantly more severe than Australia’s record seven per cent plummet during the same period. Pictured is a restaurant in Wellington in June

Kiwibank Chief Economist Jarrod Kerr said there were few surprises in the numbers.

‘You lock up the economy, activity falls,’ he said. 

‘The focus must now turn to the recovery. And the current quarter looks pretty good. It’ the path we take over the next three years that needs attention.’

Mr Kerr predicted GDP would jump by 10 per cent in the third quarter, but said more needs to be done over the medium term to return the nation to full employment.

Finance Minister Grant Robertson said the lockdown was necessary to save thousands of lives and get on top of the virus so the economy could bounce back faster.  

New Zealand has recorded 25 coronavirus deaths in a population of five million and cases have been largely contained since late May, aside from a flare-up in Auckland last month.

Opposition leader Judith Collins (pictured)slammed the Government's handling of the pandemic, saying National would 'not let COVID-19 into New Zealand'

Opposition leader Judith Collins (pictured)slammed the Government's handling of the pandemic, saying National would 'not let COVID-19 into New Zealand'

Opposition leader Judith Collins (pictured)slammed the Government’s handling of the pandemic, saying National would ‘not let COVID-19 into New Zealand’

A shopper makes his way into a store offering a closing down sale in Auckland, New Zealand

A shopper makes his way into a store offering a closing down sale in Auckland, New Zealand

A shopper makes his way into a store offering a closing down sale in Auckland, New Zealand

But the opposition National Party said Ardern’s centre-left government had failed New Zealanders by failing to keep the economy moving.

National’s finance spokesman Paul Goldsmith compared the response to Australia, which recorded an economic contraction of seven percent in the June quarter after adopting a more flexible approach to lockdowns and border controls.

‘The lack of pragmatism and a clear plan from (Ardern’s) Labour has made the economic hole deeper and the impact harder than it needed to be,’ he said.

‘This economic damage was recorded in three months but will last for decades to come – this is the deepest recession in living memory.’

New Zealand most recent recession was in 2008-09 and until the first three months of this year it had recorded non-stop quarterly growth since 2010.

New Zealand's economy shrank by a record 12.2% in the second quarter due to a strict coronavirus lockdown, but forecasts indicate activity is bouncing back

New Zealand's economy shrank by a record 12.2% in the second quarter due to a strict coronavirus lockdown, but forecasts indicate activity is bouncing back

New Zealand’s economy shrank by a record 12.2% in the second quarter due to a strict coronavirus lockdown, but forecasts indicate activity is bouncing back

During the first half of 2020, Australia’s states and territories implemented more moderate Stage Three restrictions, which closed non-essential businesses like cinemas, nightclubs, gyms and restaurants. 

Unlike New Zealand, Australia allowed restaurants to offer takeaway meals as customers were banned from dining in from the end of March. 

Only Victoria has resorted to Kiwi-style restrictions but even under Labor’s Stage Four lockdowns, Premier Daniel Andrews’ government is still allowing restaurants to offer takeaway food. 

During the June quarter, the UK’s economy contracted by 20.4 per cent as French GDP shrunk by 13.8 per cent while Canada’s economy plunged by 11.5 per cent.

Jacinda Ardern’s Labour Party is the favourite to be re-elected on October 17 despite the recession.

During New Zealand’s last recession, Labour’s last prime minister Helen Clark lost the November 2008 election – but she had already been in power for nine years.  

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National Housing Finance and Investment Corporation expects Australia’s population to shrink by 0.8%

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national housing finance and investment corporation expects australias population to shrink by 0 8

The coronavirus pandemic is expected to cause the steepest plunge in Australia’s population since World War I.

The federal government’s National Housing Finance and Investment Corporation is forecasting a 0.8 per cent population decline over two years.

In the absence of immigration, Australia’s population was expected to fall by 214,000 between a peak in 2019 and a trough in 2021.

Half of that was attributed to the drop-off in international students, following the closure of Australia’s national border in March.

The coronavirus pandemic is expected to cause the steepest plunge in the Australian population since World War I. The federal government's National Housing Finance and Investment Corporation is forecasting Australia's population will shrunk by 0.8 per cent over two years. Pictured is an empty Wynyard station in Sydney

The coronavirus pandemic is expected to cause the steepest plunge in the Australian population since World War I. The federal government's National Housing Finance and Investment Corporation is forecasting Australia's population will shrunk by 0.8 per cent over two years. Pictured is an empty Wynyard station in Sydney

The coronavirus pandemic is expected to cause the steepest plunge in the Australian population since World War I. The federal government’s National Housing Finance and Investment Corporation is forecasting Australia’s population will shrunk by 0.8 per cent over two years. Pictured is an empty Wynyard station in Sydney

‘Immigration cuts have flow-on effects on population growth – temporary (international students) immigrants are the main driver of population growth,’ the NHFIC report said.

Australia’s immigration pause would spark the steepest population decrease since World War I, shortly before the Spanish flu pandemic in 1918 reached Australian shores.

Only the unwinding of the long post-war baby boom in 1971 saw a comparably steep population decline. 

In the year to June 2019, Australia had a net annual immigration rate of 239,600 when the number of people leaving was subtracted from the tally of new arrivals.

The population increase of 1.4 per cent was among the highest in the developed world and well above the OECD average of 0.8 per cent.

A declining population also has implications for property prices, with the National Housing Finance and Investment Corporation predicting a possible shortfall 232,000 shorfall in demand for new private dwellings by 2023.

The forecast population decline, as a result of coronavirus measures, has also worried the Reserve Bank of Australia which last month released a paper which said a 40 per cent plunge in house prices was an 'extreme but plausible scenario'. Pictured are houses at Kellyville in Sydney's north-west

The forecast population decline, as a result of coronavirus measures, has also worried the Reserve Bank of Australia which last month released a paper which said a 40 per cent plunge in house prices was an 'extreme but plausible scenario'. Pictured are houses at Kellyville in Sydney's north-west

The forecast population decline, as a result of coronavirus measures, has also worried the Reserve Bank of Australia which last month released a paper which said a 40 per cent plunge in house prices was an ‘extreme but plausible scenario’. Pictured are houses at Kellyville in Sydney’s north-west

In the year to June 2019, Australia had a net annual immigration rate of 239,600 when the number of people leaving was subtracted from the tally of new arrivals. Pictured is a crowded Wynyard train station before the COVID-19 pandemic

In the year to June 2019, Australia had a net annual immigration rate of 239,600 when the number of people leaving was subtracted from the tally of new arrivals. Pictured is a crowded Wynyard train station before the COVID-19 pandemic

In the year to June 2019, Australia had a net annual immigration rate of 239,600 when the number of people leaving was subtracted from the tally of new arrivals. Pictured is a crowded Wynyard train station before the COVID-19 pandemic

The forecast population decline, as a result of coronavirus measures, has also worried the Reserve Bank of Australia which last month released a paper which said a 40 per cent plunge in house prices was an ‘extreme but plausible scenario’.

The RBA report on debt levels said Australia could experience a house price bubble similar to what occurred in United States, Spain and Ireland after the Global Financial Crisis.

The NHFIC is in charge of the government’s $500million First Home Loan Deposit Scheme, where first home buyers can secure a mortgage with a five per cent deposit with taxpayers underwriting the rest of the 20 per cent deposit.

Should new home buyers struggle to pay off their loan and be forced to sell en masse, the federal government would be left holding equity in assets worth a lot less.

A population decrease would most likely cause house prices to fall, as capital growth worried sparked a sell-off among investors.

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Mum’s genius grout cleaning trick leaves her bathroom walls sparkling clean in seconds

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mums genius grout cleaning trick leaves her bathroom walls sparkling clean in seconds

An Australian mother has revealed how she ‘cracked the code’ and discovered how to clean dirty grout on the bathroom shower walls with ease.

The Melbourne woman was frustrated after having tried ‘every product’ on her rental bathroom walls before resorting to mixing bicarb soda with Domestos disinfectant bleach.

‘Mums! I’ve cracked the code! This took me only a few minutes and not a lot of effort – I couldn’t believe my eyes!’ she said online and shared images to the Mums Who Cook, Clean and Organise Facebook group.  

For health and safety reasons, it’s advised to avoid mixing bleach with other chemicals, but combining the product with bicarb soda is safe.

BEFORE: An Australian mother has revealed how she 'cracked the code' and discovered how to clean dirty grout on the bathroom shower walls with ease (pictured)

BEFORE: An Australian mother has revealed how she 'cracked the code' and discovered how to clean dirty grout on the bathroom shower walls with ease (pictured)

BEFORE: An Australian mother has revealed how she ‘cracked the code’ and discovered how to clean dirty grout on the bathroom shower walls with ease (pictured)

AFTER: The Melbourne woman was frustrated after having tried 'every product' but resorted to mixing bicarb soda with Domestos bleach. She said she was 'so pleased' with the result (pictured)

AFTER: The Melbourne woman was frustrated after having tried 'every product' but resorted to mixing bicarb soda with Domestos bleach. She said she was 'so pleased' with the result (pictured)

AFTER: The Melbourne woman was frustrated after having tried ‘every product’ but resorted to mixing bicarb soda with Domestos bleach. She said she was ‘so pleased’ with the result (pictured)

The woman said she mixed the two products until a paste was formed, then used an old toothbrush to apply it onto the grout.

‘In most places I didn’t even leave it, just a light brushing, it was gone in an instant,’ she said.

The woman was ‘so pleased’ with how well the formula worked at cleaning the grout she highly recommends it to others.

Her post has been ‘liked’ by more than 1,200 others since it was shared on September 20, leaving others very impressed.

Bicarb soda is commonly used to clean products and areas around the home

Bicarb soda is commonly used to clean products and areas around the home

For health and safety reasons, it's best to avoid mixing bleach with other chemicals but combining the product with bicarb soda is safe to use

For health and safety reasons, it's best to avoid mixing bleach with other chemicals but combining the product with bicarb soda is safe to use

For health and safety reasons, it’s commonly known to avoid mixing bleach with other chemicals, but combining the product with bicarb soda is safe to use

‘I’m off to go scrub everything in the house!’ one woman said.

‘Well I know what I’m doing while the kids are at school,’ another said.

‘Just bought Domestos! Will give it a go,’ a third added. 

While the clever hack worked well at cleaning the grout, others warned about the dangers of mixing chemicals together. 

CHEMICALS YOU SHOULD NEVER MIX 

Bleach + Vinegar

Baking Soda + Vinegar

Bleach + Ammonia

Drain Cleaner + Drain Cleaner

Hydrogen Peroxide + Vinegar

Bleach + Rubbing Alcohol 

Source: Good House Keeping 

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‘Be careful people when mixing chemicals, don’t ever mix vinegar and bleach,’ one mum said. 

‘Good on you for experimenting and finding a solution to something that so many people struggle with – please carefully research your chemicals before mixing!’ another warned.   

Inhaling the toxic vapours can lead to coughing, breathing problems, allergic reactions and even nasty chemical burns. 

It’s a common cleaning mistake many people make, as cleaning experts have warned for years that adding any acidic to bleach will produce a toxic chlorine vapour. 

Before you get rid of the mould in your home, the experts from consumer company CHOICE said the first thing you need to do is assess the surface the fungi has attached to.  

‘Non-porous’ surfaces such as hard plastics should be relatively easier to clean.

‘When mould grows, it develops hyphae, or roots, which grow into the grout or silicone. You can clean the surfaces of the grout or silicone, but not deep into it. In those cases you have to replace the silicone or re-grout your bathroom,’ they said. 

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Mum, 34, DROWNS after going for a swim in rough surf with her daughter at a Sunshine Coast beach

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mum 34 drowns after going for a swim in rough surf with her daughter at a sunshine coast beach

A mother has drowned in rough surf while swimming with her daughter in Queensland.

The 34-year-old was pulled from the water by surfers at Coolum Beach on the Sunshine Coast on Monday morning.

More to come.

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