The New Zealand dollar plummeted on Friday after official data confirmed that the country had fallen into recession. The currency experienced a significant sell-off as investors reacted to the negative economic news.

Statistics New Zealand reported that Gross Domestic Product (GDP) had contracted for the second consecutive quarter, meeting the technical definition of a recession. The decline was attributed to a slowdown in various sectors, including manufacturing and construction.

Analysts predict that the Reserve Bank of New Zealand may consider further monetary easing measures to stimulate economic activity. The recession raises concerns about the country’s economic outlook.