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The Economy of New Zealand

New Zealand Economy

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Economy - overview: 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 has risen for nine consecutive years and reached $28,500 in 2008 in purchasing power parity terms. 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 2007-2008; 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 in 2008, and in line with global peers, the central bank has cut interest rates aggressively; the new government is responding with plans to raise productivity growth and develop infrastructure.

GDP:

GDP - real growth rate: 0.2% (2008 est.) 3.1% (2007 est.) 2% (2006 est.)

GDP - per capita:

GDP - composition by sector: agriculture: 4.4% industry: 26% services: 69.6% (2008 est.)

Population below poverty line:

Household income or consumption by percentage share: lowest 10%: %NA highest 10%: %NA

Distribution of family income - Gini index: 36.2 (1997)

Inflation rate (consumer prices):

Labor force: 2.26 million (2008 est.)

Labor force - by occupation: agriculture: 7% industry: 19% services: 74% (2006 est.)

Unemployment rate: 4% (2008 est.)

Budget: revenues: $55.1 billion expenditures: $54.66 billion (2008 est.)

Industries: food processing, wood and paper products, textiles, machinery, transportation equipment, banking and insurance, tourism, mining

Industrial production growth rate: -1.2% (2008 est.)

Electricity - production: 42.41 billion kWh (2007 est.)

Electricity - production by source:

Electricity - consumption: 38.93 billion kWh (2006 est.)

Electricity - exports: 0 kWh (2007 est.)

Electricity - imports: 0 kWh (2007 est.)

Oil - production: 47,850 bbl/day (2007 est.)

Oil - consumption: 158,400 bbl/day (2007 est.)

Oil - exports: 14,570 bbl/day (2005)

Oil - imports: 137,300 bbl/day (2005)

Oil - proved reserves: 55 million bbl (1 January 2008 est.)

Natural gas - production: 4.573 billion cu m (2007 est.)

Natural gas - consumption: 4.572 billion cu m (2007 est.)

Natural gas - exports: 0 cu m (2007 est.)

Natural gas - imports: 0 cu m (2007 est.)

Natural gas - proved reserves: 29.67 billion cu m (1 January 2008 est.)

Agriculture - products: dairy products, lamb and mutton; wheat, barley, potatoes, pulses, fruits, vegetables; wool, beef; fish

Exports: $29.53 billion (2008 est.)

Exports - commodities: dairy products, meat, wood and wood products, fish, machinery

Exports - partners: Australia 22%, US 11.5%, Japan 9.2%, China 5.3%, UK 4.6% (2007)

Imports: $31.11 billion f.o.b. (2008 est.)

Imports - commodities: machinery and equipment, vehicles and aircraft, petroleum, electronics, textiles, plastics

Imports - partners: Australia 20.7%, China 13.4%, US 9.7%, Japan 9.5%, Singapore 4.9%, Germany 4.7% (2007)

Debt - external: $59.08 billion (31 December 2008 est.)

Economic aid - recipient:

Currency:

Currency code:

Exchange rates: New Zealand dollars (NZD) per US dollar - 1.4151 (2008 est.), 1.3811 (2007), 1.5408 (2006), 1.4203 (2005), 1.5087 (2004)

Fiscal year: