New Zealand: Economy#
Over the past 30 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, fueling a large balance of payments deficit that posed a challenge for policymakers. 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. The higher rate attracted international capital inflows, which strengthened the currency and housing market while 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 pulled out of recession in 2009, and achieved 2%-3% growth from 2011 to 2015. Nevertheless, key trade sectors remain vulnerable to weak external demand and lower commodity prices. In the aftermath of the 2010 Canterbury earthquakes, the government has continued programs to expand export markets, develop capital markets, invest in innovation, raise productivity growth, and develop infrastructure, while easing its fiscal austerity.
Economic Facts#
| GDP (purchasing power parity) | $174.8 billion (2016 est.) $170.1 billion (2015 est.) $165.2 billion (2014 est.) note: data are in 2016 dollars |
|---|---|
| GDP (official exchange rate) | $179.4 billion (2015 est.) |
| GDP - real growth rate | 2.8% (2016 est.) 3% (2015 est.) 3% (2014 est.) |
| GDP - per capita (PPP) | $37,100 (2016 est.) $36,600 (2015 est.) $36,300 (2014 est.) note: data are in 2016 dollars |
| Gross national saving | 20.3% of GDP (2016 est.) 19.8% of GDP (2015 est.) 19.4% of GDP (2014 est.) |
| GDP - composition, by end use | household consumption: 57.4% government consumption: 18.5% investment in fixed capital: 23.5% investment in inventories: 0.3% exports of goods and services: 26.7% imports of goods and services: -26.4% (2016 est.) |
| GDP - composition, by sector of origin | agriculture: 4.2% industry: 26.5% services: 69.2% (2016 est.) |
| Agriculture - products | dairy products, sheep, beef, poultry, fruit, vegetables, wine, seafood, wheat and barley |
| Industries | agriculture, forestry, fishing, logs and wood articles, manufacturing, mining, construction, financial services, real estate services, tourism |
| Industrial production growth rate | 2.6% (2016 est.) |
| Labor force | 2.562 million (2016 est.) |
| Labor force - by occupation | agriculture: 7% industry: 19% services: 74% (2006 est.) |
| Unemployment rate | 5.1% (2016 est.) 5.4% (2015 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) |
| Budget | revenues: $67.61 billion expenditures: $67.01 billion (2016 est.) |
| Taxes and other revenues | 37.7% of GDP (2016 est.) |
| Budget surplus (+) or deficit (-) | 0.3% of GDP (2016 est.) |
| Public debt | 34% of GDP (2016 est.) 35% of GDP (2015 est.) |
| Fiscal year | 1 April - 31 March note: this is the fiscal year for tax purposes |
| Inflation rate (consumer prices) | 0.6% (2016 est.) 0.3% (2015 est.) |
| Central bank discount rate | 2.5% (31 December 2009) 5% (31 December 2008) |
| Commercial bank prime lending rate | 5% (31 December 2016 est.) 5.76% (31 December 2015 est.) |
| Stock of narrow money | $34.99 billion (31 December 2016 est.) $31.58 billion (31 December 2015 est.) |
| Stock of broad money | $115 billion (31 December 2016 est.) $102.8 billion (31 December 2015 est.) |
| Stock of domestic credit | $373.8 billion (31 December 2016 est.) $342.4 billion (31 December 2015 est.) |
| Market value of publicly traded shares | $74.35 billion (31 December 2015 est.) $74.42 billion (31 December 2014 est.) $65.96 billion (31 December 2013 est.) |
| Current account balance | -$5.385 billion (2016 est.) -$5.594 billion (2015 est.) |
| Exports | $31.96 billion (2016 est.) $34.41 billion (2015 est.) |
| Exports - commodities | dairy products, meat and edible offal, logs and wood articles, fruit, crude oil, wine |
| Exports - partners | China 17.5%, Australia 16.9%, US 11.8%, Japan 6% (2015) |
| Imports | $34.83 billion (2016 est.) $35.8 billion (2015 est.) |
| Imports - commodities | petroleum and products, mechanical machinery, vehicles and parts, electrical machinery, textiles |
| Imports - partners | China 19.4%, Australia 11.8%, US 11.7%, Japan 6.6%, Germany 4.7%, Thailand 4.2% (2015) |
| Reserves of foreign exchange and gold | $18.55 billion (31 December 2016 est.) $14.7 billion (31 December 2015 est.) |
| Debt - external | $81.39 billion (31 December 2016 est.) $83.4 billion (31 December 2015 est.) |
| Stock of direct foreign investment - at home | $71.19 billion (31 December 2016 est.) $74.17 billion (31 December 2015 est.) |
| Stock of direct foreign investment - abroad | $59.08 billion (31 December 2009) |
| Exchange rates | New Zealand dollars (NZD) per US dollar - 1.441 (2016 est.) 1.4279 (2015 est.) 1.4279 (2014 est.) 1.2039 (2013 est.) 1.23 (2012 est.) |