New Zealand Economy Profile 2009

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 has risen for nine consecutive years and reached $27,900 in 2008 in purchasing power parity terms. 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 in 2008. In line with global peers, the central bank has cut interest rates aggressively; the new government is responding with plans to raise productivity growth and develop infrastructure.

GDP (purchasing power parity)

$116.7 billion (2008 est.)
$116.5 billion (2007 est.)
$112.9 billion (2006 est.)
note: data are in 2008 US dollars

GDP (official exchange rate)

$128.5 billion (2008 est.)

GDP - real growth rate

0.2% (2008 est.)
3.2% (2007 est.)
2% (2006 est.)

GDP - per capita (PPP)

$28,000 (2008 est.)
$28,200 (2007 est.)
$27,600 (2006 est.)
note: data are in 2008 US dollars

GDP - composition by sector

agriculture: 4.4%
industry: 25.7%
services: 69.9% (2008 est.)

Population below poverty line

NA%

Labor force

2.25 million (2008 est.)

Labor force - by occupation

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

Unemployment rate

4.2% (2008 est.)
3.6% (2007 est.)

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)

22.4% of GDP (2008 est.)

Budget

revenues: $54.41 billion
expenditures: $55.93 billion (2008 est.)

Public debt

24.6% of GDP (2008 est.)
22.1% of GDP (2004 est.)

Inflation rate (consumer prices)

4% (2008 est.)
2.4% (2007 est.)

Central bank discount rate

5% (31 December 2008)
8.25% (31 December 2007)

Commercial bank prime lending rate

NA% (31 December 2008)
12.83% (31 December 2007)

Stock of money

$13.7 billion (31 December 2008)
$17.85 billion (31 December 2007)

Stock of quasi money

$99.91 billion (31 December 2008)
$117.8 billion (31 December 2007)

Stock of domestic credit

$164.4 billion (31 December 2008)
$200.1 billion (31 December 2007)

Industries

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

Industrial production growth rate

-2.2% (2008 est.)

Electricity - production

42.41 billion kWh (2007 est.)

Electricity - production by source

fossil fuel: 31.6%
hydro: 57.8%
nuclear: 0%
other: 10.7% (2001)

Electricity - consumption

38.93 billion kWh (2006 est.)

Electricity - exports

0 kWh (2007 est.)

Electricity - imports

0 kWh (2007 est.)

Oil - production

47,850 bbl/day (2007 est.)

Oil - consumption

158,400 bbl/day (2007 est.)

Oil - imports

137,300 bbl/day (2005)

Oil - exports

14,570 bbl/day (2005)

Oil - proved reserves

55 million bbl (1 January 2008 est.)

Natural gas - production

4.573 billion cu m (2007 est.)

Natural gas - consumption

4.572 billion cu m (2007 est.)

Natural gas - exports

0 cu m (2007 est.)

Natural gas - imports

0 cu m (2007 est.)

Natural gas - proved reserves

29.67 billion cu m (1 January 2008 est.)

Current Account Balance

-$11.3 billion (2008 est.)
-$10.63 billion (2007 est.)

Agriculture - products

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

Exports

$30.8 billion (2008 est.)
$27.29 billion (2007 est.)

Exports - commodities

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

Exports - partners

Australia 23.1%, US 10.1%, Japan 8.4%, China 5.8% (2008)

Imports

$32.45 billion (2008 est.)
$29.05 billion (2007 est.)

Imports - commodities

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

Imports - partners

Australia 18.1%, China 13.2%, US 9.5%, Japan 8.3%, Singapore 4.7%, Malaysia 4.4%, Germany 4.3% (2008)

Reserves of foreign exchange and gold

$11.15 billion (31 December 2008 est.)
$17.25 billion (31 December 2007 est.)

Debt - external

$59.08 billion (31 December 2008 est.)
$51.44 billion (31 December 2007 est.)

Stock of direct foreign investment - at home

$72.92 billion (31 December 2008 est.)
$70.94 billion (31 December 2007 est.)

Stock of direct foreign investment - abroad

$NA

Market value of publicly traded shares

$NA (31 December 2008)
$47.45 billion (31 December 2007)
$44.94 billion (31 December 2006)

Economic aid - donor

ODA, $259 million (2006)

Currency (code)

New Zealand dollar (NZD)

Currency (code)

NZD

Exchange rates

New Zealand dollars (NZD) per US dollar - 1.4151 (2008 est.), 1.3811 (2007), 1.5408 (2006), 1.4203 (2005), 1.5087 (2004)

Fiscal year

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