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New Zealand

New Zealand Economy Stats

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Author: jaacosta47

The value of New Zealand’s national currency has increased. New Zealand is a member of Australasia along with Australia, New Guinea and neighboring countries in the Pacific . On the other hand, the nation’s market economy is reliant on global trade with Australia, the USA, European Union, China, Japan, and South Korea. Manufacturing and technology are insignificant but tourism and agriculture are strong. Free market changes have taken away impediments to foreign investments during the last decades.

The economy expanded by 2.7 percent in 2013 making it one of the fastest growing countries worldwide. Manufacturing increased by 2.1 percent. This is the fastest growth rate since seven years ago. Nevertheless, the Reserve Bank of New Zealand will still continue to tighten interest rates. It was the first country to raise interest rates in 2012 when it increased bank rates from 0.25 to 2.75 percent.

Certain international economic analysts are not discounting the possibility that New Zealand's economy may be encountering bigger problems. Even as New Zealand came out of the economic slump practically unaffected, it is going through conditions which are similar to those that caused the financial crisis before. The country has the third most overvalued property market worldwide according to Knight Frank Global Opportunities. The entry of foreign home buyers has contributed to the inflation of New Zealand's housing sector. Therefore, New Zealand's economic standing may be jeopardized due to increasing interest rates. It is putting immense pressure on the economic planning officials of the country.

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 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.

Definitions

  • Budget > Revenues: Revenues calculated on an exchange rate basis, i.e., not in purchasing power parity (PPP) terms
  • Budget surplus > + or deficit > -: This entry records the difference between national government revenues and expenditures, expressed as a percent of GDP. A positive (+) number indicates that revenues exceeded expenditures (a budget surplus), while a negative (-) number indicates the reverse (a budget deficit). Normalizing the data, by dividing the budget balance by GDP, enables easy comparisons across countries and indicates whether a national government saves or borrows money. Countries with high budget deficits (relative to their GDPs) generally have more difficulty raising funds to finance expenditures, than those with lower deficits.
  • Debt > Government debt > Public debt, share of GDP: Public debt as % of GDP (CIA).

    No date was available from the Wikipedia article, so we used the date of retrieval.

  • Exports: This entry provides the total US dollar amount of merchandise exports on an f.o.b. (free on board) basis. These figures are calculated on an exchange rate basis, i.e., not in purchasing power parity (PPP) terms.
  • Fiscal year: The beginning and ending months for a country's accounting period of 12 months, which often is the calendar year but which may begin in any month. All yearly references are for the calendar year (CY) unless indicated as a noncalendar fiscal year (FY).
  • GDP: GDP at purchaser's prices is the sum of gross value added by all resident producers in the economy plus any product taxes and minus any subsidies not included in the value of the products. It is calculated without making deductions for depreciation of fabricated assets or for depletion and degradation of natural resources. Data are in current U.S. dollars. Dollar figures for GDP are converted from domestic currencies using single year official exchange rates. For a few countries where the official exchange rate does not reflect the rate effectively applied to actual foreign exchange transactions, an alternative conversion factor is used.
  • GDP > Composition by sector > Industry: The gross domestic product (GDP) or value of all final goods produced by the industrial sector within a nation in a given year. GDP dollar estimates in the Factbook are derived from purchasing power parity (PPP) calculations. See the CIA World Factbook for more information.
  • GDP > Per capita: This entry gives the gross domestic product (GDP) or value of all final goods and services produced within a nation in a given year. A nation's GDP at purchasing power parity (PPP) exchange rates is the sum value of all goods and services produced in the country valued at prices prevailing in the United States. This is the measure most economists prefer when looking at per-capita welfare and when comparing living conditions or use of resources across countries. The measure is difficult to compute, as a US dollar value has to be assigned to all goods and services in the country regardless of whether these goods and services have a direct equivalent in the United States (for example, the value of an ox-cart or non-US military equipment); as a result, PPP estimates for some countries are based on a small and sometimes different set of goods and services. In addition, many countries do not formally participate in the World Bank's PPP project that calculates these measures, so the resulting GDP estimates for these countries may lack precision. For many developing countries, PPP-based GDP measures are multiples of the official exchange rate (OER) measure. The difference between the OER- and PPP-denominated GDP values for most of the weathly industrialized countries are generally much smaller. Per capita figures expressed per 1 population.
  • GDP > Per capita > PPP: This entry shows GDP on a purchasing power parity basis divided by population as of 1 July for the same year.
  • GDP > Purchasing power parity per capita: This entry gives the gross domestic product (GDP) or value of all final goods and services produced within a nation in a given year. A nation's GDP at purchasing power parity (PPP) exchange rates is the sum value of all goods and services produced in the country valued at prices prevailing in the United States. This is the measure most economists prefer when looking at per-capita welfare and when comparing living conditions or use of resources across countries. The measure is difficult to compute, as a US dollar value has to be assigned to all goods and services in the country regardless of whether these goods and services have a direct equivalent in the United States (for example, the value of an ox-cart or non-US military equipment); as a result, PPP estimates for some countries are based on a small and sometimes different set of goods and services. In addition, many countries do not formally participate in the World Bank's PPP project that calculates these measures, so the resulting GDP estimates for these countries may lack precision. For many developing countries, PPP-based GDP measures are multiples of the official exchange rate (OER) measure. The difference between the OER- and PPP-denominated GDP values for most of the weathly industrialized countries are generally much smaller. Figures expressed per capita for the same year.
  • GDP per capita: GDP at purchaser's prices is the sum of gross value added by all resident producers in the economy plus any product taxes and minus any subsidies not included in the value of the products. It is calculated without making deductions for depreciation of fabricated assets or for depletion and degradation of natural resources. Data are in current U.S. dollars. Dollar figures for GDP are converted from domestic currencies using single year official exchange rates. For a few countries where the official exchange rate does not reflect the rate effectively applied to actual foreign exchange transactions, an alternative conversion factor is used. Figures expressed per capita for the same year.
  • Gross National Income: GNI, Atlas method (current US$). GNI (formerly GNP) is the sum of value added by all resident producers plus any product taxes (less subsidies) not included in the valuation of output plus net receipts of primary income (compensation of employees and prop).
  • Inflation rate > Consumer prices: This entry furnishes the annual percent change in consumer prices compared with the previous year's consumer prices.
  • Public debt: This entry records the cumulatiive total of all government borrowings less repayments that are denominated in a country's home currency. Public debt should not be confused with external debt, which reflects the foreign currency liabilities of both the private and public sector and must be financed out of foreign exchange earnings.
  • Unemployment rate: This entry contains the percent of the labor force that is without jobs. Substantial underemployment might be noted.
STAT AMOUNT DATE RANK HISTORY
Budget > Revenues $69.92 billion 2013 43th out of 223
Budget surplus > + or deficit > - -3.8% of GDP 2012 118th out of 182
Debt > Government debt > Public debt, share of GDP 41.8 CIA 2014 87th out of 153
Exports $37.87 billion 2012 61st out of 189
Fiscal year 1 2013
GDP $167.35 billion 2012 52nd out of 177
GDP > Composition by sector > Industry 24.6% 2012 121st out of 217
GDP > Per capita $27,309.58 per capita 2007 34th out of 183
GDP > Per capita > PPP $29,500.00 2012 31st out of 188
GDP > Purchasing power parity per capita $27,290.63 2010 33th out of 181
GDP per capita $37,749.44 2012 22nd out of 177
Gross National Income $51.00 billion 2001 42nd out of 158
Inflation rate > Consumer prices 1.1% 2012 187th out of 199
Public debt 38.1% of GDP 2012 91st out of 149
Unemployment rate 6.9% 2012 63th out of 112

SOURCES: CIA World Factbooks 18 December 2003 to 28 March 2011; CIA World Factbooks 2010, 2011, 2012, 2013; Wikipedia: List of countries by public debt (List) (Public debt , The World Factbook , United States Central Intelligence Agency , accessed on March 21, 2013.); All CIA World Factbooks 18 December 2003 to 18 December 2008; World Bank national accounts data, and OECD National Accounts data files.; CIA World Factbook 2010, 2011, 2012, 2013; CIA World Factbooks 18 December 2003 to 28 March 2011. Population figures from World Bank: (1) United Nations Population Division. World Population Prospects, (2) United Nations Statistical Division. Population and Vital Statistics Report (various years), (3) Census reports and other statistical publications from national statistical offices, (4) Eurostat: Demographic Statistics, (5) Secretariat of the Pacific Community: Statistics and Demography Programme, and (6) U.S. Census Bureau: International Database.; World Bank national accounts data, and OECD National Accounts data files. Population figures from World Bank: (1) United Nations Population Division. World Population Prospects, (2) United Nations Statistical Division. Population and Vital Statistics Report (various years), (3) Census reports and other statistical publications from national statistical offices, (4) Eurostat: Demographic Statistics, (5) Secretariat of the Pacific Community: Statistics and Demography Programme, and (6) U.S. Census Bureau: International Database.

Citation

"New Zealand Economy Stats", NationMaster. Retrieved from http://www.nationmaster.com/country-info/profiles/New-Zealand/Economy

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New Zealand Economy Profiles (Subcategories)

Adjusted savings 3 Intellectual property 4
Aid 6 Interest payments 3
Balance of payments 28 International tourism 4
Budget 10 Investment 3
Changes in net 4 Labor force 3
Commercial service 4 Market capitalization of listed companies 4
Commercial service imports 4 Merchandise 4
Commitment to Development Index 4 Merchandise imports 4
Companies 28 Micro 4
Consumption 10 National accounts 98
Currency 14 Natural gas 8
Current account balance 5 Net capital account 4
Current transfers 4 Net current transfers 4
Debt 52 Net current transfers from abroad 6
Economic aid 3 Net errors and omissions 4
Economic growth 8 Net income 4
Economic structure 4 Net income from abroad 6
Electricity 8 Net incurrence of liabilities 3
Entrepreneurship 12 Net trade in goods 4
Exports 3 Net trade in goods and services 4
External balance on goods and services 7 Oil 10
Final 20 Portfolio investment 4
Financial sector 33 Poverty and inequality 5
Foreign direct investment 14 Productivity 6
GDP 42 Public expenditure 4
GDP growth 4 Purchasing power parity 11
GDP per capita 4 Reserves 6
GNI 12 Retail 3
Goods 4 Royalty and license fees 8
Goods imports 4 Savings 44
Government 14 Service 4
Government debt 8 Service imports 4
Government deficits and debt 4 Services 10
Government spending 5 Spending 73
Gross capital formation 10 Stock of direct foreign investment 4
Gross domestic savings 6 Stocks traded 5
Gross fixed capital formation 10 Support and aid 6
Gross national expenditure 9 Tax 72
Gross savings 6 Taxes 3
Gross value added at factor cost 5 Total 9
High-technology 4 Tourism 18
Household final 23 Tourism expenditures 5
Income 24 Tourism receipts 5
Income payments 4 Tourist arrivals by region of origin 8
Income receipts 4 Trade 1594
Inequality 12 Trademark applications 3
Inflation 10 Welfare 5
Innovation 36
  • New Zealand ranked second for GDP > composition by sector > agriculture amongst High income OECD countries in 2012.
  • New Zealand ranked first for debt > strength of legal rights index > 0=weak to 10=strong globally in 2013.
  • New Zealand ranked #4 for human development index amongst Former British colonies in 2006.
  • New Zealand ranked #5 for GDP per capita amongst East Asia and Pacific in 2012.
  • New Zealand ranked last for GDP amongst English speaking countries in 2012.
  • New Zealand ranked second for GDP > composition by sector > services amongst Sparsely populated countries in 2012.

1

The value of New Zealand’s national currency has increased. New Zealand is a member of Australasia along with Australia, New Guinea and neighboring countries in the Pacific . On the other hand, the nation’s market economy is reliant on global trade with Australia, the USA, European Union, China, Japan, and South Korea. Manufacturing and technology are insignificant but tourism and agriculture are strong. Free market changes have taken away impediments to foreign investments during the last decades.

The economy expanded by 2.7 percent in 2013 making it one of the fastest growing countries worldwide. Manufacturing increased by 2.1 percent. This is the fastest growth rate since seven years ago. Nevertheless, the Reserve Bank of New Zealand will still continue to tighten interest rates. It was the first country to raise interest rates in 2012 when it increased bank rates from 0.25 to 2.75 percent.

Certain international economic analysts are not discounting the possibility that New Zealand's economy may be encountering bigger problems. Even as New Zealand came out of the economic slump practically unaffected, it is going through conditions which are similar to those that caused the financial crisis before. The country has the third most overvalued property market worldwide according to Knight Frank Global Opportunities. The entry of foreign home buyers has contributed to the inflation of New Zealand's housing sector. Therefore, New Zealand's economic standing may be jeopardized due to increasing interest rates. It is putting immense pressure on the economic planning officials of the country.

Posted on 25 May 2014

jaacosta47

jaacosta47

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