New Zealand's economy is taking a step back.

The New Zealand economy is unexpectedly backing down a lot. During the third quarter of the year, growth decreased by 1 percent, compared to forecasted 0.2 percent. The previous quarter saw a decline of 1.1 percent.

The country's economy is being pressured by high prices, interest rates, and a crisis on the housing market. A small bright spot can, however, be in sight since the central bank has signaled interest rate cuts ahead.

The conservative government claims that the central bank has fueled the economic downturn through interest rate hikes to combat inflation.

But the opposition, Labour, claims that it is the government that has caused the economic darkness through cuts and misguided budget tightening.