New Zealand Economy Profile 2013

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 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 2% decline in 2009, but pulled out of recession late in the year, and achieved roughly 2% per year growth in 2010-12. 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.

GDP (purchasing power parity)

$128.5 billion (2012 est.)
$125.7 billion (2011 est.)
$124 billion (2010 est.)
note: data are in 2012 US dollars

GDP (official exchange rate)

$166.9 billion (2012 est.)

GDP - real growth rate

2.2% (2012 est.)
1.3% (2011 est.)
1.8% (2010 est.)

GDP - per capita (PPP)

$28,800 (2012 est.)
$28,500 (2011 est.)
$28,400 (2010 est.)
note: data are in 2012 US dollars

GDP - composition by sector

agriculture: 4.8%
industry: 24.6%
services: 70.6% (2012 est.)

Population below poverty line

NA%

Labor force

2.402 million (2012 est.)

Labor force - by occupation

agriculture: 7%
industry: 19%
services: 74% (2006 est.)

Unemployment rate

6.5% (2012 est.)
6.5% (2011 est.)

Unemployment, youth ages 15-24

total: 16.6%
male: 16%
female: 17.2% (2009)

Household income or consumption by percentage share

lowest 10%: NA%
highest 10%: NA%

Distribution of family income - Gini index

36.2 (1997)

Investment (gross fixed)

19.5% of GDP (2012 est.)

Budget

revenues: $62.64 billion
expenditures: $72.71 billion (2012 est.)

Taxes and other revenues

37.5% of GDP (2012 est.)

Budget surplus (+) or deficit (-)

-6% of GDP (2012 est.)

Public debt

41.8% of GDP (2012 est.)
36.1% of GDP (2011 est.)

Inflation rate (consumer prices)

1.2% (2012 est.)
4% (2011 est.)

Central bank discount rate

2.5% (31 December 2009)
5% (31 December 2008)

Commercial bank prime lending rate

6.1% (31 December 2012 est.)
6.11% (31 December 2011 est.)

Stock of narrow money

$26.94 billion (31 December 2012 est.)
$26.26 billion (31 December 2011 est.)

Stock of money

$20.17 billion (31 December 2008)
$26.83 billion (31 December 2007)

Stock of quasi money

$81.01 billion (31 December 2008)
$96.15 billion (31 December 2007)

Stock of broad money

$154.6 billion (31 December 2011 est.)
$145.3 billion (31 December 2010 est.)

Stock of domestic credit

$233.8 billion (31 December 2012 est.)
$239.1 billion (31 December 2011 est.)

Market value of publicly traded shares

$71.66 billion (31 December 2011)
$36.3 billion (31 December 2010)
$67.06 billion (31 December 2009)

Agriculture - products

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

Industries

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

Industrial production growth rate

1.5% (2011 est.)

Current Account Balance

-$6.803 billion (2012 est.)
-$6.709 billion (2011 est.)

Exports

$37.73 billion (2012 est.)
$38.35 billion (2011 est.)

Exports - commodities

dairy products, meat, wood and wood products, fish, machinery

Exports - partners

Australia 22.2%, China 12.5%, US 8.5%, Japan 7.1% (2011)

Imports

$35.65 billion (2012 est.)
$35.61 billion (2011 est.)

Imports - commodities

machinery and equipment, vehicles and aircraft, petroleum, electronics, textiles, plastics

Imports - partners

China 16.1%, Australia 15.9%, US 10.4%, Japan 6.3%, Singapore 4.6%, Germany 4.3% (2011)

Reserves of foreign exchange and gold

$18.33 billion (31 December 2012 est.)
$17.01 billion (31 December 2011 est.)

Debt - external

$90.23 billion (31 December 2012 est.)
$91.07 billion (31 December 2011 est.)

Stock of direct foreign investment - at home

$75.77 billion (31 December 2012 est.)
$73.92 billion (31 December 2011 est.)

Stock of direct foreign investment - abroad

$NA (31 December 2010)
$59.08 billion (31 December 2009)

Exchange rates

New Zealand dollars (NZD) per US dollar -
1.289 (2012 est.)
1.263 (2011 est.)
1.3874 (2010 est.)
1.6002 (2009)
1.4151 (2008)

Fiscal year

1 April - 31 March
note: this is the fiscal year for tax purposes