Capital City: Wellington
	It is %T:%M %A in Wellington, Auckland

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Economic trends

Beginning in the 1980s, New Zealand transformed its highly protected and regulated economy into one that is now much more privatized, market-oriented, and deregulated. 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. The GDP growth rate was 2.7% in 2005 but slowed down to 1.6% in 2006 due to fall in FDI (foreign direct investments). The government is broadly running an expansionary fiscal policy directed at meeting election pledges and preventing an economic slowdown, but this is contributing to high level of interest rates. According to IMF, GDP has reached 2.8% in 2007 and is forcasted to 2.3% for 2008 despite continued export growth, and a revival in investments. Inflation is under control (estimated at 2.4% in 2007) and the unemployment rate remains low (arround 3.5%).

Main branches of industry

New Zealand's economy is based on its agricultural exports, contributing almost 50% to the total exports. The agricultural sector has diversified from its reliance on sheep raising to more value-added enterprises like dairying, forestry, and horticulture. New Zealand adds up to 40% of world-wide mutton and lamb exports. Food processing is the largest manufacturing sector; and there also exits a variety of small light-manufacturing industries. Sectors like chemicals and metallurgy have good potential. Maritime transport and tourism are also well developed. Small amounts of coal, gold, iron, and natural gas are found in the country.

International trade

New Zealand is now one of the most open economies in the world. The share of foreign trade in its GDP is more than 60%. New Zealand's economy has been helped by strong economic relations with Australia. New Zealand and Australia are partners in "Closer Economic Relations" (CER), which allows free trade in goods and most services. New Zealand's top three trade partners (both for import and export) are: Australia, the USA, and Japan. It mainly exports dairy products, meat, wool, machinery, and fruits & nuts. The commodities mainly imported are vehicles, machinery, mineral fuels & oils, electric & electronic equipment, and plastics.