Economy of New Zealand
One New Zealand Dollar coin
Currency	1 New Zealand Dollar (NZD$) = 100 cents
Fiscal year	1 July - 30 June
Trade organisations	APEC, WTO and OECD
Statistics
GDP (PPP)	$92.51 billion (2004 est.) (60th [1])
GDP growth	4.8% (2004 est.)
GDP per capita	$23,200 (2004 est.)
GDP by sector	agriculture (4.6%), industry (27.4%), services (68%) (2004 est.)
Inflation (CPI)	3.9% (2005 est.)
Population below poverty line	N/A (2004 est.)
Labour force	2.05 million (2004 est.)
Labour force by occupation	agriculture (10%), industry (25%), services (65%) (1995 est.)
Unemployment	3.4% (2005)
Main industries	Food processing, Textiles, Machinery and Transportation equipment, Finance, Tourism, Mining
Trading partners
Exports	$29.2 billion(2005)
Export goods	machinery and equipment, computers, chemicals, pharmaceuticals; live animals, animal products
Main export partners	Australia 19.6%, U.S. 14.3%, Japan 11.4%, the People's Republic of China 6.3%, UK 5.1% (2004)
Imports	$ 35.8 billion (2005)
Import goods	machinery and equipment, vehicles and aircraft, petroleum, electronics, textiles, plastics
Main import partners	Australia 28.6%, Japan 10.7%, U.S. 10%, the People's Republic of China 6.6%, Germany 4.2%, Singapore 4.1% (2004)
Public finances
Public debt	$42.84 billion (2005 est.)
Revenues	$38.29 billion (2004)
Expenses	$36.12 billion (2004)
Economic aid	donor: $99.7 million (FY99/00)
Main source All values, unless otherwise stated, are in US dollars

The Economy of New Zealand is a small but prosperous free market economy, which is greatly dependent on international trade, mainly with Australia, the United States of America and Japan. I LIKE TO PEE PANTS!! Photographed by me. ... ISO 4217 Code NZD User(s) New Zealand, Cook Islands, Niue, Pitcairn Islands, Tokelau Inflation 2. ... APEC member countries shown in green Headquarters Type Economic forum Member countries 21 Leaders  -  Executive Director  Colin S. Heseltine Establishment 1989 Website http://www. ... For other uses of the initials WTO, see WTO (disambiguation). ... The Organization for Economic Co-operation and Development (OECD) is an international organization of those developed countries that accept the principles of representative democracy and a free market economy. ... The Purchasing power parity (PPP) theory was developed by Gustav Cassel in 1920. ... Gross domestic product (by purchasing power parity) in 2006 There are three lists of countries of the world sorted by their gross domestic product (GDP) (the value of all final goods and services produced within a nation in a given year). ... In economics, a consumer price index (CPI) or retail price index (RPI) is a statistical time-series measure of a weighted average of prices of a specified set of goods and services purchased by consumers. ... Map of countries showing percentage of population who have an income below the national poverty line The poverty line is the level of income below which one cannot afford to purchase all the resources one requires to live. ... This article does not cite any references or sources. ... Food processing is the set of methods and techniques used to transform raw ingredients into food for consumption by humans or animals. ... This article is about the type of fabric. ... A machine is any mechanical or electrical device that transmits or modifies energy to perform or assist in the performance of tasks. ... Finance studies and addresses the ways in which individuals, businesses, and organizations raise, allocate, and use monetary resources over time, taking into account the risks entailed in their projects. ... Tourists on Oahu, Hawaii Tourism is travel for predominantly recreational or leisure purposes or the provision of services to support this leisure travel. ... Chuquicamata, the largest open pit copper mine in the world, Chile. ... 2005 is a common year starting on Saturday of the Gregorian calendar. ... Motto: (Out Of Many, One) (traditional) In God We Trust (1956 to date) Anthem: The Star-Spangled Banner Capital Washington D.C. Largest city New York City None at federal level (English de facto) Government Federal constitutional republic  - President George Walker Bush (R)  - Vice President Dick Cheney (R) Independence from... 2004 is a leap year starting on Thursday of the Gregorian calendar. ... 2005 is a common year starting on Saturday of the Gregorian calendar. ... Motto: (Out Of Many, One) (traditional) In God We Trust (1956 to date) Anthem: The Star-Spangled Banner Capital Washington D.C. Largest city New York City None at federal level (English de facto) Government Federal constitutional republic  - President George Walker Bush (R)  - Vice President Dick Cheney (R) Independence from... 2004 is a leap year starting on Thursday of the Gregorian calendar. ... 2004 is a leap year starting on Thursday of the Gregorian calendar. ... 2004 is a leap year starting on Thursday of the Gregorian calendar. ... ISO 4217 Code USD User(s) the United States, the British Indian Ocean Territory,[1] the British Virgin Islands, Cambodia, East Timor, Ecuador, El Salvador, the Marshall Islands, Micronesia, Palau, Panama, Turks and Caicos Islands, and the insular areas of the United States Inflation 2. ... This article needs additional references or sources to facilitate its verification. ...

Economic profile

This is a chart of trend of gross domestic product of New Zealand at market prices estimated by the International Monetary Fund with figures in millions of New Zealand Dollars.

For purchasing power parity comparisons, the US Dollar is exchanged at 1.51 New Zealand Dollars.

Since 1984, the government of New Zealand has accomplished major economic restructuring, moving an agrarian economy dependent on concessionary British market access toward a more industrialised, free market economy that can compete globally. This growth has boosted real incomes, broadened and deepened the technological capabilities of the industrial sector, and contained inflationary pressures. Inflation remains among the lowest in the industrial world. Per capita GDP has been moving up toward the levels of the big West European economies. New Zealand's heavy dependence on trade leaves its growth prospects vulnerable to economic performance in Asia, Europe, and the United States. A free market is an idealized market, where all economic decisions and actions by individuals regarding transfer of money, goods, and services are voluntary, and are therefore devoid of coercion and theft (some definitions of coercion are inclusive of theft). Colloquially and loosely, a free market economy is an economy... World map showing the location of Asia. ... World map showing the location of Europe. ...

New Zealand's economy has traditionally been based on a foundation of exports from its very efficient agricultural system. Leading agricultural exports include meat, dairy products, forest products, fruit and vegetables, fish, and wool. New Zealand was a direct beneficiary of many of the reforms achieved under the Uruguay Round of trade negotiations, with agriculture in general and the dairy sector in particular enjoying many new trade opportunities in the long term. The country has substantial hydroelectric power and sizable reserves of natural gas, much of which is exploited due primarily to major Keynesian import substitution-oriented industrial projects (See Think Big). Leading manufacturing sectors are food processing, metal fabrication, and wood and paper products. Some manufacturing industries, many of which had only been established in a climate of import substitution with high tariffs and subsidies, such as car assembly, have completely disappeared, and manufacturing's importance in the economy is in a general decline. Natural gas is a gaseous fossil fuel consisting primarily of methane but including significant quantities of ethane, butane, propane, carbon dioxide, nitrogen, helium and hydrogen sulfide. ... Keynesian economics, or Keynesianism, is an economic theory based on the ideas of John Maynard Keynes, as put forward in his book The General Theory of Employment, Interest and Money, published in 1936 in response to the Great Depression of the 1930s. ... Import substitution industrialization (also called ISI) is a trade and economic policy based on the premise that a developing country should attempt to substitute products which it imports, mostly finished goods, with locally produced substitutes. ... Heavy industry does not have a single fixed meaning compared to light industry. ... The New Zealand Prime Minister Robert Muldoon (Prime Minister: 1975 - 1984; Sir Robert from 1983) and his New Zealand National Party government in the early 1980s sponsored Think Big as an interventionist state economic strategy. ... A tariff is a tax placed on imported and/or exported goods, sometimes called a customs duty. ... A subsidy is generally a monetary grant given by government in support of an activity regarded as being in the public interest. ...

Microeconomic reform

Since 1984, government subsidies including those for agriculture have been eliminated; import regulations have been liberalised; exchange rates have been freely floated; controls on interest rates, wages, and prices have been removed; and marginal rates of taxation reduced. Tight monetary policy and major efforts to reduce the government budget deficit brought the inflation rate down from an annual rate of more than 18% in 1987. The restructuring and sale of government-owned enterprises in the 1980s and 1990s reduced government's role in the economy and permitted the retirement of some public debt, but simultaneously massively increased the necessity for greater welfare spending and has lead to considerably higher rates of unemployment that were standard in New Zealand in earlier decades. However, unemployment in New Zealand is again low, hovering around 3.5% to 4%. An interest rate is the rental price of money. ... This page is a candidate to be copied to Wiktionary. ... There are three main interpretations of the idea of a welfare state: the provision of welfare services by the state. ... This article does not cite any references or sources. ...

Economic growth, which had slowed in 1997 and 1998 due to the negative effects of the Asian financial crisis and two successive years of drought, rebounded in 1999. A low New Zealand dollar, favourable weather, and high commodity prices boosted exports, and the economy is estimated to have grown by 2.5% in 2000. Growth resumed at a higher level from 2001 onwards due primarily to the lower value of the New Zealand dollar which made exports more competitive. The return of substantial economic growth led the unemployment rate to drop from 7.8% in 1999 to 3.4% in late 2005, the lowest rate in nearly 20 years. The large current account deficit, which stood at more than 6.5% of GDP in 2000, has been a constant source of concern for New Zealand policymakers and has now hit 9% to date as of March 2006. The rebound in the export sector is expected to help narrow the deficit to lower levels, but the budget deficit continues to increase as of 2005, especially due to increases in the value of the New Zealand dollar. This article needs additional references or sources to facilitate its verification. ... The Asian financial crisis was a financial crisis that started in July 1997 in Thailand and affected currencies, stock markets, and other asset prices in several Asian countries, many considered East Asian Tigers. ... Year 2005 (MMV) was a common year starting on Saturday (link displays full calendar) of the Gregorian calendar. ...

Economic relations with trading partners

New Zealand's economy has been helped by strong economic relations with Australia. Australia and New Zealand are partners in "Closer Economic Relations" (CER) [2], which allows for free trade in goods and most services. Since 1990, CER has created a single market of more than 22 million people, and this has provided new opportunities for New Zealand exporters. Australia is now the destination of 19% of New Zealand's exports, compared to 14% in 1983. Both sides also have agreed to consider extending CER to product standardization and taxation policy. New Zealand initiated a free trade agreement with Singapore in September 2000 which was extended in 2005 to include Chile and Brunei and is now known as the P4 agreement. New Zealand is seeking other bilateral/regional trade agreements in the Pacific area. Wikipedia does not yet have an article with this exact name. ... Free trade is an economic concept referring to the selling of products between countries without tariffs or other trade barriers. ... 2000 (MM) was a leap year starting on Saturday of the Gregorian calendar. ... The Trans-Pacific Strategic Economic Partnership (SEP), also known as the P4 agreement, is a multilateral free trade agreement between the countries of Brunei, Chile, New Zealand and Singapore which was signed on 3 June 2005 and came into force on 1 January 2006. ...

U.S. goods and services have been competitive in New Zealand, though the strong U.S. dollar has created challenges for U.S. exporters in 2001. The market-led economy offers many opportunities for U.S. exporters and investors. Investment opportunities exist in chemicals, food preparation, finance, tourism, and forest products, as well as in franchising. The best sales prospects are for medical equipment, information technology, and consumer goods. On the agricultural side, the best prospects are for fresh fruit, snack foods, specialized grocery items (eg. organic foods), and soybean meal. A number of U.S. companies have subsidiary branches in New Zealand. Many operate through local agents, with some joint venture associations. The American Chamber of Commerce is active in New Zealand, with its main office in Auckland and a branch committee in Wellington. Binomial name Glycine max (L.) Merr. ... A joint venture (often abbreviated JV) is an entity formed between two or more parties to undertake economic activity together. ... Auckland, in the North Island of New Zealand, is the largest urban area in New Zealand. ...

New Zealand welcomes and encourages foreign investment without discrimination. The Overseas Investment Commission (OIC) must give consent to foreign investments that would control 25% of more of businesses or property worth more than NZ$50 million. Restrictions and approval requirements also apply to certain investments in land and in the commercial fishing industry. In practice, OIC approval requirements have not hindered U.S. investment. OIC consent is based on a national interest determination, but no performance requirements are attached to foreign direct investment after consent is given. Full remittance of profits and capital is permitted through normal banking channels. Foreign direct investment (FDI) is the movement of capital across national frontiers in a manner that grants the investor control over the acquired asset. ...

Other economic indicators

Industrial Production Growth Rate: 5.9% (2004)

Household income or consumption by percentage share:

• Lowest 10%: 0.3%
• Highest 10%: 29.8% (1991)

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

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

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

Electricity:

• Electricity - consumption: 34.88 TWh (2001)
• Electricity - production: 38.39 TWh (2004)
• Electricity - exports: 0 kWh (2001)
• Electricity - imports: 0 kWh (2001)

Electricity - Production by source: The terawatt hour (TW·h) is a unit for measuring energy. ... The terawatt hour (TW·h) is a unit for measuring energy. ... The kilowatt-hour (symbol: kW·h) is a unit for measuring energy. ... The kilowatt-hour (symbol: kW·h) is a unit for measuring energy. ...

• Fossil Fuel: 31.6%
• Hydro: 57.8%
• Nuclear: 0%
• Other: 10.7% (2001)

Oil:

• Oil - production: 42,160 barrel/day (6,703 m³/d) 2001
• Oil - consumption: 132,700 barrel/day (21,100 m³/d) 2001
• Oil - exports: 30,220 barrel/day (4,800 m³/d) 2001
• Oil - imports: 119,700 barrel/day (19,000 m³/d) 2001
• Oil - proved reserves: 89.62 million barrel (14,250,000 m³) January 2002

Exchange rates:
New Zealand Dollars (NZ$) per US$1 - 1.3869 (2005), 1.5248 (2004), 1.9071 (2003), 2.1622 (2002), 2.3788 (2001), 2.2012 (2000), 1.8886 (1999), 1.8632 (1998), 1.5083 (1997), 1.4543 (1996), 1.5235 (1995)

References

• Harcourt, T. (2005). Closer Economic Relations. Australian Trade Commission Website
• This article contains material from the CIA World Factbook (2005 edition) which, as a US government publication, is in the public domain.

The World Factbook 2007 (government edtion) cover. ... The public domain comprises the body of all creative works and other knowledge—writing, artwork, music, science, inventions, and others—in which no person or organization has any proprietary interest. ...

See also

• Communications in New Zealand
• Transport in New Zealand
• Reserve Bank of New Zealand
• New Zealand Electricity Market
• Economy of Oceania
• New Zealand Ministry of Economic Development

Communications in New Zealand are fairly typical for an industrialized nation. ... Transport in New Zealand, with its mountainous topography and relatively small population mostly located on a long coastline, has always faced many transport challenges. ... The Reserve Bank of New Zealand is the central bank of New Zealand. ... Up to 1994, the New Zealand Electricity Market had a system of monopoly providers of generation, transmission, distribution and retailing. ... The economy of Oceania is comprised of more than. ... The Ministry of Economic Development in New Zealand has an overarching goal of promoting economic development. ...

External links

• OECD's New Zealand country Web site and OECD Economic Survey of New Zealand
• Ministry of Economic Development Web site

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