Flag of New Zealand

New Zealand Economy Profile

Home > Factbook > Countries > New Zealand

Economy - overview

Over the past 40 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 10 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 and 2008. The higher rate attracted international capital inflows, which strengthened the currency and housing market while aggravating the current account deficit. Rising house prices, especially in Auckland, have become a political issue in recent years, as well as a policy challenge in 2016 and 2017, as the ability to afford housing has declined for many.

Expanding New Zealand’s network of free trade agreements remains a top foreign policy priority. New Zealand was an early promoter of the Trans-Pacific Partnership (TPP) and was the second country to ratify the agreement in May 2017. Following the United States’ withdrawal from the TPP in January 2017, on 10 November 2017 the remaining 11 countries agreed on the core elements of a modified agreement, which they renamed the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). In November 2016, New Zealand opened negotiations to upgrade its FTA with China; China is one of New Zealand’s most important trading partners.

GDP (purchasing power parity)$210.877 billion (2019 est.)

$205.112 billion (2018 est.)

$198.913 billion (2017 est.)

note: data are in 2010 dollars
GDP (official exchange rate)$205.202 billion (2019 est.)
GDP - real growth rate2.22% (2019 est.)

3.22% (2018 est.)

3.8% (2017 est.)
GDP - per capita (PPP)$42,888 (2019 est.)

$42,370 (2018 est.)

$41,493 (2017 est.)

note: data are in 2010 dollars
Gross national saving21.4% of GDP (2018 est.)

21% of GDP (2017 est.)

20.2% of GDP (2015 est.)
GDP - composition, by end usehousehold consumption: 57.2% (2017 est.)

government consumption: 18.2% (2017 est.)

investment in fixed capital: 23.4% (2017 est.)

investment in inventories: 0.3% (2017 est.)

exports of goods and services: 27% (2017 est.)

imports of goods and services: -26.1% (2017 est.)
GDP - composition by sectoragriculture: 5.7% (2017 est.)

industry: 21.5% (2017 est.)

services: 72.8% (2017 est.)
Ease of Doing Business Index scoresOverall score: 86.8 (2020)

Starting a Business score: 100 (2020)

Trading score: 84.6 (2020)

Enforcement score: 71.5 (2020)
Population below poverty lineNA
Labor force2.709 million (2020 est.)
Labor force - by occupationagriculture: 6.6%

industry: 20.7%

services: 72.7% (2017 est.)
Unemployment rate4.13% (2019 est.)

4.32% (2018 est.)
Unemployment, youth ages 15-24total: 11.3%

male: 11.1%

female: 11.5% (2019 est.)
Household income or consumption by percentage sharelowest 10%: NA

highest 10%: NA
Distribution of family income - Gini index36.2 (1997)
Budgetrevenues: 74.11 billion (2017 est.)

expenditures: 70.97 billion (2017 est.)
Taxes and other revenues36.8% (of GDP) (2017 est.)
Budget surplus (+) or deficit (-)1.6% (of GDP) (2017 est.)
Public debt31.7% of GDP (2017 est.)

33.5% of GDP (2016 est.)
Inflation rate (consumer prices)1.6% (2019 est.)

1.5% (2018 est.)

1.8% (2017 est.)
Credit ratingsFitch rating: AA (2011)

Moody's rating: Aaa (2002)

Standard & Poors rating: AA (2011)
Agriculture - productsmilk, beef, kiwi fruit, apples, potatoes, mutton, grapes, wheat, barley, green onions/shallots
Industriesagriculture, forestry, fishing, logs and wood articles, manufacturing, mining, construction, financial services, real estate services, tourism
Industrial production growth rate1.8% (2017 est.)
Current Account Balance-$6.962 billion (2019 est.)

-$8.742 billion (2018 est.)
Exports$56.219 billion (2019 est.)

$54.977 billion (2018 est.)

$53.457 billion (2017 est.)
Exports - commoditiesdairy products, sheep/goat meats, lumber, beef products, fresh fruits (2019)
Exports - partnersChina 28%, Australia 14%, United States 9%, Japan 6% (2019)
Imports$63.622 billion (2019 est.)

$62.276 billion (2018 est.)

$58.494 billion (2017 est.)
Imports - commoditiescars, crude petroleum, refined petroleum, delivery trucks, gas turbines (2019)
Imports - partnersChina 18%, Australia 15%, United States 9%, Japan 6%, Germany 5% (2019)
Reserves of foreign exchange and gold$20.68 billion (31 December 2017 est.)

$17.81 billion (31 December 2016 est.)
Debt - external$190.621 billion (2019 est.)

$192.327 billion (2018 est.)
Exchange ratesNew Zealand dollars (NZD) per US dollar -

1.41794 (2020 est.)

1.52334 (2019 est.)

1.45709 (2018 est.)

1.4279 (2014 est.)

1.2039 (2013 est.)
Fiscal year1 April - 31 March

note: this is the fiscal year for tax purposes

Source: CIA World Factbook
This page was last updated on September 18, 2021