New Zealand Economy

Over the past 20 years the government has transformed New Zealand from an agrarian economy dependent on concessionary British market access to a more industrialized, free market economy that can compete globally. This dynamic growth has boosted real incomes - but left behind some at the bottom of the ladder - and broadened and deepened the technological capabilities of the industrial sector. Per capita income rose for ten consecutive years until 2007 in purchasing power parity terms, but fell in 2008-09. Debt-driven consumer spending drove robust growth in the first half of the decade, helping fuel a large balance of payments deficit that posed a challenge for economic managers. Inflationary pressures caused the central bank to raise its key rate steadily from January 2004 until it was among the highest in the OECD in 2007-08; international capital inflows attracted to the high rates further strengthened the currency and housing market, however, aggravating the current account deficit. The economy fell into recession before the start of the global financial crisis and contracted for five consecutive quarters in 2008-09. In line with global peers, the central bank cut interest rates aggressively and the government developed fiscal stimulus measures. The economy posted a 1.7% decline in 2009, but pulled out of recession late in the year, and achieved 2.1% growth in 2010. Nevertheless, key trade sectors remain vulnerable to weak external demand. The government plans to raise productivity growth and develop infrastructure, while reining in government spending.
GDP (purchasing power parity):
$119.2 billion (2010 est.) country comparison to the world: 63 $116.8 billion (2009 est.) $118.8 billion (2008 est.) note: data are in 2010 US dollars
GDP (official exchange rate):
$138 billion (2010 est.)
GDP - real growth rate:
2.1% (2010 est.) country comparison to the world: 148 -1.7% (2009 est.) -0.2% (2008 est.)
GDP - per capita (PPP):
$28,000 (2010 est.) country comparison to the world: 51 $27,700 (2009 est.) $28,500 (2008 est.) note: data are in 2010 US dollars
GDP - composition by sector:
agriculture: 4.6% industry: 24% services: 71.4% (2010 est.)
Labor force:
2.32 million (2010 est.) country comparison to the world: 114
Labor force - by occupation:
agriculture: 7% industry: 19% services: 74% (2006 est.)
Unemployment rate:
6.5% (2010 est.) country comparison to the world: 66 6.2% (2009 est.)
Population below poverty line:
NA%
Household income or consumption by percentage share:
lowest 10%: %NA highest 10%: %NA
Distribution of family income - Gini index:
36.2 (1997) country comparison to the world: 83
Investment (gross fixed):
19.6% of GDP (2010 est.) country comparison to the world: 94
Budget:
revenues: $56.24 billion expenditures: $62.18 billion (2010 est.)
Public debt:
25.5% of GDP (2010 est.) country comparison to the world: 99 22.2% of GDP (2009 est.)
Inflation rate (consumer prices):
2.6% (2010 est.) country comparison to the world: 70 2.1% (2009 est.)
Central bank discount rate:
2.5% (31 December 2009) country comparison to the world: 83 5% (31 December 2008)
Commercial bank prime lending rate:
10.39% (31 December 2009 est.) country comparison to the world: 67 12.21% (31 December 2008 est.)
Stock of narrow money:
$24.15 billion (31 December 2010 est.) country comparison to the world: 61 $21.81 billion (31 December 2009 est.)
Stock of broad money:
$118.1 billion (31 December 2010 est.) country comparison to the world: 48 $108.9 billion (31 December 2009 est.)
Stock of domestic credit:
$206.2 billion (31 December 2010 est.) country comparison to the world: 38 $180.5 billion (31 December 2009 est.)
Market value of publicly traded shares:
$67.06 billion (31 December 2009) country comparison to the world: 58 $24.17 billion (31 December 2008) $47.45 billion (31 December 2007)
Agriculture - products:
dairy products, lamb and mutton; wheat, barley, potatoes, pulses, fruits, vegetables; wool, beef; fish
Industries:
food processing, wood and paper products, textiles, machinery, transportation equipment, banking and insurance, tourism, mining
Industrial production growth rate:
2% (2010 est.) country comparison to the world: 131
Electricity - production:
42.4 billion kWh (2007 est.) country comparison to the world: 53
Electricity - consumption:
39.24 billion kWh (2007 est.) country comparison to the world: 53
Electricity - exports:
0 kWh (2008 est.)
Electricity - imports:
0 kWh (2008 est.)
Oil - production:
61,150 bbl/day (2009 est.) country comparison to the world: 58
Oil - consumption:
154,100 bbl/day (2009 est.) country comparison to the world: 65
Oil - exports:
54,560 bbl/day (2008 est.) country comparison to the world: 75
Oil - imports:
143,900 bbl/day (2008 est.) country comparison to the world: 57
Oil - proved reserves:
60 million bbl (1 January 2010 est.) country comparison to the world: 78
Natural gas - production:
4.305 billion cu m (2009 est.) country comparison to the world: 50
Natural gas - consumption:
4.32 billion cu m (2009 est.) country comparison to the world: 62
Natural gas - exports:
0 cu m (2008 est.) country comparison to the world: 154
Natural gas - imports:
NA
Natural gas - proved reserves:
33.98 billion cu m (1 January 2010 est.) country comparison to the world: 68
Current account balance:
$-4.504 billion (2010 est.) country comparison to the world: 169 $-3.693 billion (2009 est.)
Exports:
$33.24 billion (2010 est.) country comparison to the world: 62 $25.35 billion (2009 est.)
Exports - commodities:
dairy products, meat, wood and wood products, fish, machinery
Exports - partners:
Australia 23.36%, US 9.64%, China 9.21%, Japan 7.1%, UK 4.21% (2009)
Imports:
$30.24 billion (2010 est.) country comparison to the world: 58 $23.95 billion (2009 est.)
Imports - commodities:
machinery and equipment, vehicles and aircraft, petroleum, electronics, textiles, plastics
Imports - partners:
Australia 18.4%, China 15.09%, US 10.45%, Japan 7.24%, Germany 4.16%, Singapore 4.12% (2009)
Reserves of foreign exchange and gold:
$17.85 billion (31 December 2010 est.) country comparison to the world: 46 $15.59 billion (31 December 2009 est.)
Debt - external:
$64.33 billion (31 December 2010 est.) country comparison to the world: 47 $62.47 billion (31 December 2009 est.)
Stock of direct foreign investment - at home:
$67.18 billion (31 December 2010 est.) country comparison to the world: 50 $66.63 billion (31 December 2009 est.)
Stock of direct foreign investment - abroad:
$NA (31 December 2009) $59.08 billion (31 December 2008)
Exchange rates:
New Zealand dollars (NZD) per US dollar - 1.3874 (2010) 1.6002 (2009) 1.4151 (2008) 1.3811 (2007) 1.5408 (2006) https://www.cia.gov/library/publications/the-world-factbook/geos/nz.html