New-Zealand

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Economic and political outline

Economic indicators | Foreign Trade in figures | Sources of general economic information | Political outline

Economic indicators

After a growth rate of more than 2% in 2005, 2006, and 2007, New Zealand's GDP dropped in 2008-2009 following the slowing down of the global economy. The country showed eighteeen months of negative growth before the GDP settled at 0.1% in the second quarter of 2009. This relative improvement was due to the establishment of an efficient monetary policy (a reduction of the key rate from 8.25% in July 2008, to 2.5% in April 2009), an attractive taxation policy, strong increase of the migration balance in order to stimulate purchase in the real estate market. Activity was highly influenced by the dynamism of the primary sector, and in particular the fishing, forestry and mining industries. Traditionally, New Zealand's economic growth factors are domestic demand and exports.

Per capita GDP is in the process of catching up with the main western European economies. Unemployment, which had been dropping since 2003, has started increasing again following the crisis and could reach 7% in 2010.

In response to the economic recession which hit New Zealand, a recovery plan was adopted particularly aimed at employment, education, tourism, telecommunication, construction and infrastructures.

Main indicators	2006	2007	2008	2009	2010
GDP (billions USD)	105.97	128.91	128.49	90.56	88.49
GDP (constant prices, annual % change)	1.9	3.2	0.3	-2.0e	0.5
GDP per capita (USD)	25,279e	30,432e	30,049e	20,960	20,261
General government balance (in % of GDP)	4.8	2.6	0.1	-2.8	-4.5
Inflation rate (%)	3.4	2.4	4.0e	1.3e	1.1e
Unemployment rate (% of the labor force)	3.8	3.6	4.1	6.5	7.5
Current Account (billions USD)	-9.25	-10.57	-11.42e	-7.06e	-6.22
Current Account (in % of GDP)	-8.7	-8.2	-8.9	-7.8e	-7.0e

Source: IMF - World Economic Outlook Database

Note: (e) Estimated data

Main sectors of industry

New Zealand is one of the smallest OECD economies still heavily dependent on agricultural products. Agriculture is New Zealand's main source of export. In 2008, dairy products accounted for 21% of New Zealand's total export merchandise. The other main agricultural product exports are meat, wood, fruit and fishing products. New Zealand also has a thriving wine industry. The country is rich in natural resources, in particular gas, petrol and coal.

The service sector accounts for over two-thirds of the GDP and employs nearly 65% of the workforce. Tourism, which has been growing rapidly in recent years, is one of the country's most important sources of foreign-exchange revenue. The sectors of retail and wholesale trade, restaurants and hotels are major components of the New Zeland economy, accounting for about 25% of the services sector. The quality of the transport infrastructures play a critical role in the country's economic growth.

Breakdown of economic activity by sector	Agriculture	Industry	Services
Employment by sector (in % of total employment)	7.1	22.0	70.6
Value added (in % of GDP)	6.8	24.9	68.3
Value added (annual % change)	0.4	-1.8	3.0

- last available data.

Monetary indicators	2004	2005	2006	2007	2008
New Zealand Dollar (NZD) - Average annual exchange rate for 1 USD	1.51	1.42	1.54	1.36	1.42

Source: World Bank - World Development Indicators

Indicator of economic freedom

Score:: 82/100
Position:: free
World Rank:: 5 out of 179
Regional Rank:: 4 out of 42

Distribution of Economic freedom in the world
Source: 2008 Index of Economic freedom, Heritage Foundation

Country risk

See the country risk analysis provided by Ducroire.

Foreign trade in figures

Foreign trade is an essential element of New Zealand's economy, which is one of the most open in the world. The share of foreign trade in its GDP is more than 60%. The country's economy is very trade-oriented, with the exports of goods and services accounting for 33% of the total output.
The main trade partners (both for imports and exports) are Australia (most of the merchandise circulates freely between the two countries), the United States, Japan, China, Korea and the United Kingdom.
The trade balance went into surplus again in the second quarter of 2009, in spite of the appreciation of the New Zeland dollar due to the increase in milk exports and the drop in import volumes' prices.
The country's main exports are dairy products, meat, wool, machinery, fruits and nuts. The most imported commodities are vehicles, machinery, mineral fuels and oil, electric and electronic equipment, and plastics.

Foreign trade indicators	2003	2004	2005	2006	2007
Imports of goods (millions USD)	17,315	21,888	24,583	24,573	29,056
Exports of goods (millions USD)	16,804	20,466	22,005	22,574	27,291
Imports of services (millions USD)	5,760	7,217	8,224	7,795	9,055
Exports of services (millions USD)	6,859	8,146	8,593	8,102	9,299
Imports of goods and services (annual % change)	12.7	12.5	4.1	-1.7	-
Exports of goods and services (annual % change)	0.9	4.7	-0.1	3.1	-
Imports of goods and services (in % of GDP)	28.8	29.8	30.2	30.6	-
Exports of goods and services (in % of GDP)	29.1	29.1	27.9	29.1	-
Trade Balance (millions USD)	-511	-1,422	-2,578	-1,999	-1,764
Trade Balance (including service) (millions USD)	589	-493	-2,209	-1,692	-1,520
Foreign trade (in % of GDP)	57.9	58.9	58.2	59.7	-

Source: World Bank

Main partner countries

Main customers (% of exports)	2008
Australia	23.3%
United States	10.2%
Japan	8.4%
China	5.9%
United Kingdom	3.9%
South Korea	3.2%
Indonesia	2.3%
Malaysia	2.2%
Germany	2.1%
Singapore	2.0%
Thailand	1.9%
Philippines	1.7%
Saudi Arabia	1.7%
Hong Kong	1.6%
Venezuela	1.5%
India	1.3%
France	1.2%
Canada	1.2%
Netherlands	1.2%
Belgium	1.2%
See more countries	48.3%

Main suppliers (% of imports)	2008
Australia	18.0%
China	13.3%
United States	9.5%
Japan	8.2%
Singapore	4.6%
Germany	4.3%
Malaysia	4.1%
Qatar	3.1%
Thailand	2.7%
South Korea	2.7%
Indonesia	2.4%
United Kingdom	2.2%
Italy	2.0%
France	1.7%
United Arab Emirates	1.6%
Canada	1.5%
Morocco	1.2%
Saudi Arabia	1.1%
Brunei Darussalam	1.0%
Netherlands	0.8%
See more countries	46.4%

Source: Comtrade

Main products

Main exports (% of exports)	2008
Dairy produce; birds' eggs; natural honey; edible...Dairy produce; birds' eggs; natural honey; edible products of animal origin, not elsewhere specified or included	21.6%
Meat and edible meat offalMeat and edible meat offal	12.0%
Mineral fuels, mineral oils and products of their...Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes	6.9%
Wood and articles of wood; wood charcoalWood and articles of wood; wood charcoal	5.1%
Nuclear reactors, boilers, machinery and...Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof	4.4%
Edible fruit and nuts; peel of citrus fruits or...Edible fruit and nuts; peel of citrus fruits or melons	3.4%
Aluminium and articles thereofAluminium and articles thereof	3.3%
Fish and crustaceans, molluscs and other aquatic...Fish and crustaceans, molluscs and other aquatic invertebrates	2.8%
Albuminoidal substances; modified starches; glues;...Albuminoidal substances; modified starches; glues; enzymes	2.8%
Beverages, spirits and vinegarBeverages, spirits and vinegar	2.5%
Electrical machinery and equipment and parts...Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles	2.5%
Preparations of cereals, flour, starch or milk;...Preparations of cereals, flour, starch or milk; pastrycooks' products	1.9%
Wool, fine or coarse animal hair; horsehair yarn...Wool, fine or coarse animal hair; horsehair yarn and woven fabric	1.7%
Iron and steelIron and steel	1.6%
Pulp of wood or of other fibrous cellulosic...Pulp of wood or of other fibrous cellulosic material; recovered (waste and scrap) paper or paperboard	1.5%
Natural or cultured pearls, precious or...Natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad with precious metal, and articles thereof; imitation jewellery; coin	1.5%
Optical, photographic, cinematographic, measuring,...Optical, photographic, cinematographic, measuring, checking, precision, medical or surgical instruments and apparatus; parts and accessories thereof	1.4%
Miscellaneous edible preparationsMiscellaneous edible preparations	1.4%
Paper and paperboard; articles of paper pulp, of...Paper and paperboard; articles of paper pulp, of paper or of paperboard	1.3%
Raw hides and skins (other than furskins) and...Raw hides and skins (other than furskins) and leather	1.2%
Plastics and articles thereofPlastics and articles thereof	1.1%
Edible vegetables and certain roots and tubersEdible vegetables and certain roots and tubers	1.0%
Ships, boats and floating structuresShips, boats and floating structures	0.8%
Aircraft, spacecraft, and parts thereofAircraft, spacecraft, and parts thereof	0.8%
Products of animal origin, not elsewhere specified...Products of animal origin, not elsewhere specified or included	0.8%
Articles of iron or steelArticles of iron or steel	0.7%
Vehicles other than railway or tramway...Vehicles other than railway or tramway rolling-stock, and parts and accessories thereof	0.7%
Pharmaceutical productsPharmaceutical products	0.7%
Residues and waste from the food industries;...Residues and waste from the food industries; prepared animal fodder	0.7%
Preparations of vegetables, fruit, nuts or other...Preparations of vegetables, fruit, nuts or other parts of plants	0.5%
Preparations of meat, of fish or of crustaceans,...Preparations of meat, of fish or of crustaceans, molluscs or other aquatic invertebrates	0.5%
Animal or vegetable fats and oils and their...Animal or vegetable fats and oils and their cleavage products; prepared edible fats; animal or vegetable waxes	0.5%
Live animalsLive animals	0.4%
Furniture; bedding, mattresses, mattress supports,...Furniture; bedding, mattresses, mattress supports, cushions and similar stuffed furnishings; lamps and lighting fittings, not elsewhere specified or included; illuminated signs, illuminated name-plates and the like; prefabricated buildings	0.4%
Sugars and sugar confectionerySugars and sugar confectionery	0.4%
Miscellaneous chemical productsMiscellaneous chemical products	0.3%
Copper and articles thereofCopper and articles thereof	0.3%
Oil seeds and oleaginous fruits; miscellaneous...Oil seeds and oleaginous fruits; miscellaneous grains, seeds and fruit; industrial or medicinal plants; straw and fodder	0.3%
Articles of apparel and clothing accessories, not...Articles of apparel and clothing accessories, not knitted or crocheted	0.3%
Cocoa and cocoa preparationsCocoa and cocoa preparations	0.3%
Articles of apparel and clothing accessories,...Articles of apparel and clothing accessories, knitted or crocheted	0.3%
Tanning or dyeing extracts; tannins and their...Tanning or dyeing extracts; tannins and their derivatives; dyes, pigments and other colouring matter; paints and varnishes; putty and other mastics; inks	0.2%
Soap, organic surface-active agents, washing...Soap, organic surface-active agents, washing preparations, lubricating preparations, artificial waxes, prepared waxes, polishing or scouring preparations, candles and similar articles, modelling pastes, 'dental waxes' and dental preparations with a basis of plaster	0.2%
Carpets and other textile floor coveringsCarpets and other textile floor coverings	0.2%
Organic chemicalsOrganic chemicals	0.2%
Live trees and other plants; bulbs, roots and the...Live trees and other plants; bulbs, roots and the like; cut flowers and ornamental foliage	0.2%
Tools, implements, cutlery, spoons and forks, of...Tools, implements, cutlery, spoons and forks, of base metal; parts thereof of base metal	0.2%
Essential oils and resinoids; perfumery, cosmetic...Essential oils and resinoids; perfumery, cosmetic or toilet preparations	0.2%
Ores, slag and ashOres, slag and ash	0.2%
Rubber and articles thereofRubber and articles thereof	0.2%
Miscellaneous articles of base metalMiscellaneous articles of base metal	0.1%
Printed books, newspapers, pictures and other...Printed books, newspapers, pictures and other products of the printing industry; manuscripts, typescripts and plans	0.1%
Footwear, gaiters and the like; parts of such...Footwear, gaiters and the like; parts of such articles	0.1%
Wadding, felt and nonwovens; special yarns; twine,...Wadding, felt and nonwovens; special yarns; twine, cordage, ropes and cables and articles thereof	0.1%
Other made-up textile articles; sets; worn...Other made-up textile articles; sets; worn clothing and worn textile articles; rags	0.1%
Toys, games and sports requisites; parts and...Toys, games and sports requisites; parts and accessories thereof	0.1%
See more products	50.0%

Main imports (% of imports)	2008
Mineral fuels, mineral oils and products of their...Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes	17.7%
Nuclear reactors, boilers, machinery and...Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof	13.0%
Vehicles other than railway or tramway...Vehicles other than railway or tramway rolling-stock, and parts and accessories thereof	10.4%
Electrical machinery and equipment and parts...Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles	8.0%
Plastics and articles thereofPlastics and articles thereof	3.6%
Optical, photographic, cinematographic, measuring,...Optical, photographic, cinematographic, measuring, checking, precision, medical or surgical instruments and apparatus; parts and accessories thereof	2.7%
Pharmaceutical productsPharmaceutical products	2.3%
Paper and paperboard; articles of paper pulp, of...Paper and paperboard; articles of paper pulp, of paper or of paperboard	2.2%
Articles of iron or steelArticles of iron or steel	2.0%
Aircraft, spacecraft, and parts thereofAircraft, spacecraft, and parts thereof	1.8%
FertilizersFertilizers	1.8%
Iron and steelIron and steel	1.6%
Salt; sulphur; earths and stone; plastering...Salt; sulphur; earths and stone; plastering materials, lime and cement	1.5%
Residues and waste from the food industries;...Residues and waste from the food industries; prepared animal fodder	1.3%
Furniture; bedding, mattresses, mattress supports,...Furniture; bedding, mattresses, mattress supports, cushions and similar stuffed furnishings; lamps and lighting fittings, not elsewhere specified or included; illuminated signs, illuminated name-plates and the like; prefabricated buildings	1.3%
Inorganic chemicals; organic or inorganic...Inorganic chemicals; organic or inorganic compounds of precious metals, of rare-earth metals, of radioactive elements or of isotopes	1.3%
Articles of apparel and clothing accessories,...Articles of apparel and clothing accessories, knitted or crocheted	1.2%
Articles of apparel and clothing accessories, not...Articles of apparel and clothing accessories, not knitted or crocheted	1.2%
Rubber and articles thereofRubber and articles thereof	1.1%
Miscellaneous chemical productsMiscellaneous chemical products	1.1%
Miscellaneous edible preparationsMiscellaneous edible preparations	1.0%
Beverages, spirits and vinegarBeverages, spirits and vinegar	1.0%
Toys, games and sports requisites; parts and...Toys, games and sports requisites; parts and accessories thereof	1.0%
Printed books, newspapers, pictures and other...Printed books, newspapers, pictures and other products of the printing industry; manuscripts, typescripts and plans	0.9%
Essential oils and resinoids; perfumery, cosmetic...Essential oils and resinoids; perfumery, cosmetic or toilet preparations	0.9%
Organic chemicalsOrganic chemicals	0.8%
Ships, boats and floating structuresShips, boats and floating structures	0.8%
CerealsCereals	0.7%
Aluminium and articles thereofAluminium and articles thereof	0.7%
Preparations of cereals, flour, starch or milk;...Preparations of cereals, flour, starch or milk; pastrycooks' products	0.7%
Glass and glasswareGlass and glassware	0.7%
Edible fruit and nuts; peel of citrus fruits or...Edible fruit and nuts; peel of citrus fruits or melons	0.6%
Animal or vegetable fats and oils and their...Animal or vegetable fats and oils and their cleavage products; prepared edible fats; animal or vegetable waxes	0.6%
Tanning or dyeing extracts; tannins and their...Tanning or dyeing extracts; tannins and their derivatives; dyes, pigments and other colouring matter; paints and varnishes; putty and other mastics; inks	0.6%
Preparations of vegetables, fruit, nuts or other...Preparations of vegetables, fruit, nuts or other parts of plants	0.6%
Footwear, gaiters and the like; parts of such...Footwear, gaiters and the like; parts of such articles	0.6%
Natural or cultured pearls, precious or...Natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad with precious metal, and articles thereof; imitation jewellery; coin	0.5%
Other made-up textile articles; sets; worn...Other made-up textile articles; sets; worn clothing and worn textile articles; rags	0.5%
Soap, organic surface-active agents, washing...Soap, organic surface-active agents, washing preparations, lubricating preparations, artificial waxes, prepared waxes, polishing or scouring preparations, candles and similar articles, modelling pastes, 'dental waxes' and dental preparations with a basis of plaster	0.5%
Copper and articles thereofCopper and articles thereof	0.5%
Sugars and sugar confectionerySugars and sugar confectionery	0.4%
Tools, implements, cutlery, spoons and forks, of...Tools, implements, cutlery, spoons and forks, of base metal; parts thereof of base metal	0.4%
Cocoa and cocoa preparationsCocoa and cocoa preparations	0.4%
Wood and articles of wood; wood charcoalWood and articles of wood; wood charcoal	0.4%
Miscellaneous articles of base metalMiscellaneous articles of base metal	0.4%
Articles of leather; saddlery and harness; travel...Articles of leather; saddlery and harness; travel goods, handbags and similar containers; articles of animal gut (other than silkworm gut)	0.3%
Ceramic productsCeramic products	0.3%
Meat and edible meat offalMeat and edible meat offal	0.3%
Articles of stone, plaster, cement, asbestos, mica...Articles of stone, plaster, cement, asbestos, mica or similar materials	0.3%
Photographic or cinematographic goodsPhotographic or cinematographic goods	0.3%
Preparations of meat, of fish or of crustaceans,...Preparations of meat, of fish or of crustaceans, molluscs or other aquatic invertebrates	0.3%
Dairy produce; birds' eggs; natural honey; edible...Dairy produce; birds' eggs; natural honey; edible products of animal origin, not elsewhere specified or included	0.2%
Carpets and other textile floor coveringsCarpets and other textile floor coverings	0.2%
Miscellaneous manufactured articlesMiscellaneous manufactured articles	0.2%
Edible vegetables and certain roots and tubersEdible vegetables and certain roots and tubers	0.2%
Albuminoidal substances; modified starches; glues;...Albuminoidal substances; modified starches; glues; enzymes	0.2%
Coffee, tea, maté and spicesCoffee, tea, maté and spices	0.2%
Fish and crustaceans, molluscs and other aquatic...Fish and crustaceans, molluscs and other aquatic invertebrates	0.2%
Man-made staple fibresMan-made staple fibres	0.2%
Tobacco and manufactured tobacco substitutesTobacco and manufactured tobacco substitutes	0.2%
Wadding, felt and nonwovens; special yarns; twine,...Wadding, felt and nonwovens; special yarns; twine, cordage, ropes and cables and articles thereof	0.2%
Man-made filamentsMan-made filaments	0.1%
Arms and ammunition; parts and accessories thereofArms and ammunition; parts and accessories thereof	0.1%
Clocks and watches and parts thereofClocks and watches and parts thereof	0.1%
Products of the milling industry; malt; starches;...Products of the milling industry; malt; starches; inulin; wheat gluten	0.1%
Oil seeds and oleaginous fruits; miscellaneous...Oil seeds and oleaginous fruits; miscellaneous grains, seeds and fruit; industrial or medicinal plants; straw and fodder	0.1%
Impregnated, coated, covered or laminated textile...Impregnated, coated, covered or laminated textile fabrics; textile articles of a kind suitable for industrial use	0.1%
Railway or tramway locomotives, rolling-stock and...Railway or tramway locomotives, rolling-stock and parts thereof; railway or tramway track fixtures and fittings and parts thereof; mechanical (including electro-mechanical) traffic signalling equipment of all kinds	0.1%
See more products	47.3%

Source: Comtrade

See more products: More imports (Intracen Data)
More exports (Intracen Data)

Sources of general economic information

Ministries: Ministry of Economic Development
Statistical Office: The New Zealand Statistics
Central Bank: Reserve Bank of New Zealand
Stock Exchange: New Zealand Stock Exchange
Search Engines: Yahoo! New Zealand
Searchnz
Acess NZ
Looksmart
MSN NZ
New Zealand Search
NZ Explorer
Economic portals: Statisphere

Political outline

Executive Power: The head of state is the British sovereign represented by a Governor General. The head of government is the prime minister, who is responsible to the legislature and appointed by the governor-general acting upon its advice. Cabinet is the most senior policy-making body and is led by the Prime Minister, who is also, by convention, the Parliamentary leader of the governing party or coalition. The Prime Minister holds the executive powers which include implementation of the law and running the day-to-day affairs of the country.
Legislative Power: Legislative authority is vested in a unicameral 120-member House of Representatives. 69 members elected by popular vote in single-member constituencies including seven Maori seats, and 51 proportional seats chosen from party lists. All members serve three-year terms. The people of New Zealand have considerable political rights.
Main political parties: New Zealand has a multi-party system. The main political parties are the New Zealand Labour Party (centre-left) and the National Party (centre-right, conservative), usually forming centre-left or centre-right coalitions. The other major political parties are:
- The New Zealand First Party (populist nationalist)
- ACT New Zealand (free market liberal party)
- Green Party (left-wing environmentalist party)
- Maori Party (Maori ethnic party)
- United Future (Christian Democrats)
- The Alliance (left-wing).
Current political leaders: Queen of New Zealand: ELIZABETH II (since February 1952) – hereditary
Governor-General: Anand Satyanand. (since August 2006) – appointed by Queen
Prime Minister: John Key (since 19 November 2008)
Deputy Prime Minister: Bill English (since 19 November 2008)
Next election dates: Parliamentary: 2011

Indicator of freedom of the press

World Rank:: 9/173
Evolution:: 6 places up compared to 2007

Source: Worldwide Press Freedom Index 2007, Reporters Without Borders

Indicator of political freedom

Ranking:: Free
Political freedom:: 1/7
Civil liberties:: 1/7

Map of freedom 2007
Source: Freedom House

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