Economy of New Zealand

The economy of New Zealand is a highly developed free-market economy.[21] It is the 51st-largest national economy in the world when measured by nominal gross domestic product (GDP) and the 67th-largest in the world when measured by purchasing power parity (PPP). New Zealand has a large GDP for its size and population. The country has one of the most globalised economies and depends greatly on international trade – mainly with Australia, the European Union, the United States, China, South Korea, Japan and Canada. New Zealand's 1983 Closer Economic Relations agreement with Australia means that the economy aligns closely with that of Australia.

Economy of New Zealand
CurrencyNew Zealand dollar (NZD, NZ$)
1 July – 30 June[1]
Trade organisations
APEC, CPTPP, WTO and OECD
Country group
Statistics
Population 4,942,500 (September 2019)[4]
GDP
  • $203.127 billion (nominal, 2018)[5]
  • $208.744 billion (PPP, 2019)[6]
GDP rank
GDP growth
  • 3.2% (2018) 2.2% (2019)
  • −7.2% (2020e) 5.9% (2021e)[6]
GDP per capita
  • $41,205 (nominal, 2018)[5]
  • $40,096 (PPP, 2018)[5]
GDP per capita rank
GDP by sector
  • Primary industries: 7.6%
  • Manufacturing: 12.2%
  • Services: 71%
  • (2011)[7]
  • 1.2% (2020 est.)[6]
  • 1% (YTD June 2019)[8]
Population below poverty line
11.0% (2014)[9]
33.9 medium (2019) [10]
Labour force
  • 2.680 million (June 2019 Qtr)[13]
  • 67.7% employment rate (June 2019 Qtr)[13]
Labour force by occupation
Unemployment
  • 9.2% (2020 est.)[6]
  • 3.9% (June 2019 Qtr)[13]
  • 109 thousand (June 2019 Qtr)[13]
Main industries
Food processing, textiles, machinery and transportation equipment, finance, tourism, mining
1st (very easy, 2020)[15]
External
ExportsNZ$86.426 billion (FY 2019/20) [16]
Export goods
Dairy products, meat, logs and wood products, fruit, machinery and equipment, wine, fish and seafood
Main export partners
ImportsNZ$82.910 billion (FY 2019/20) [16]
Import goods
Vehicles and aircraft, machinery and equipment, petroleum, electronics, textiles, plastics
Main import partners
FDI stock
  • $84.19 billion (31 December 2017 est.)[14]
  • Abroad: $16.74 billion (31 December 2016 est.)[14]
−$5.471 billion (2017 est.)[14]
NZ$156.181 billion (53% of GDP) (December 2018)[17] NZ$86.342 billion (30.5% of GDP) (Feb 2018)[18]
Public finances
31.7% of GDP (2017 est.)[14]
+1.6% (of GDP) (2017 est.)[14]
Revenues74.11 billion (2017 est.)[14]
Expenses70.97 billion (2017 est.)[14]
Economic aiddonor: $99.7 million (FY99/00)
  • Standard & Poor's:[19]
  • AAA (Domestic)
  • AA+ (Foreign)
  • AAA (T&C Assessment)
  • Outlook: Negative[20]
  • Moody's:[20]
  • Aaa
  • Outlook: Stable
  • Fitch:[20]
  • AA+
  • Outlook: Negative
Foreign reserves
 $20.68 billion (31 December 2017 est.)[14]
Main data source: CIA World Fact Book
All values, unless otherwise stated, are in US dollars.

New Zealand's diverse economy has a sizable service sector, accounting for 63% of all GDP activity as of 2013.[22] Large-scale manufacturing industries include aluminium production, food processing, metal fabrication, wood and paper products. Mining, manufacturing, electricity, gas, water, and waste services accounted for 16.5% of GDP as of 2013.[22] The primary sector continues to dominate New Zealand's exports, despite accounting for only 6.5% of GDP as of 2013.[22] The information technology sector is growing rapidly.[23]

The major capital market is the New Zealand Exchange (NZX). As of February 2014, NZX had a total of 258 listed securities with a combined market capitalisation of NZD $94.1 billion.[24] New Zealand's currency, the New Zealand dollar (informally known as the "Kiwi dollar") also circulates in four Pacific Island territories. The New Zealand dollar is the 10th-most traded currency in the world.[25]

Overview
Gross domestic product trend of New Zealand at market prices estimated by the International Monetary Fund.
YearGross domestic product
(NZ$ millions)		1 US dollar exchangeInflation index
(2000=100)		Per capita income
(as % of USD)
1980[26]22,976NZD 1.023058.67
1985[26]45,003NZD 2.005338.93
1990[26]73,745NZD 1.678455.80
1995[26]91,881NZD 1.529359.02
2000[26]114,563NZD 2.1810038.98
2005[26]154,108NZD 1.4111362.99
2010[27]140,787NZD 1.65129
2015[27]199,117NZD 1.74147

The New Zealand economy has been ranked first in the Social Progress Index, which covers such areas as basic human needs, foundations of well-being, and the level of opportunity available to its citizens.[28] However, the outlook includes some challenges. New Zealand income levels, which used to be above those of many other countries in Western Europe prior to the crisis of the 1970s, have dropped in relative terms and never recovered. As a result, the number of New Zealanders living in poverty has grown and income inequality has increased dramatically.

New Zealand has also had persistent current account deficits since the early 1970s, peaking at −7.8% of GDP in 2006 but falling to −2.6% of GDP in FY 2014.[29] The CIA World Fact Book notes that 2017 public debt (that owed by the Government) was 31.7% of GDP.[30] Between 1984 and 2006, net external foreign debt increased 11-fold, to NZ$182 billion.[31] As of June 2018 gross core crown debt was NZ$84,524 million or 29.5% of GDP and net core crown debt was NZ$62,114 million or 21.7% of GDP.[18]

New Zealand net overseas debt 1993–2012
New Zealand Government Gross Debt as percent of GDP 1860 to 2000

Despite New Zealand's persistent current account deficits, the balance on external goods and services has generally been positive. In FY 2014, export receipts exceeded imports by NZ$3.9 billion.[29] There has been an investment income imbalance or net outflow for debt-servicing of external loans. In FY 2014, New Zealand's investment income from the rest of the world was NZ$7 billion, versus outgoings of NZ$16.3 billion, a deficit of NZ$9.3 billion.[29] The proportion of the current account deficit that is attributable to the investment income imbalance (a net outflow to the Australian-owned banking sector) grew from one third in 1997 to roughly 70% in 2008.[32]

Taxation
Main article: Taxation in New Zealand

Taxation in New Zealand is collected at a national level by the Inland Revenue Department (IRD) on behalf of the New Zealand Government. National taxes are levied on personal and business income, and on the supply of goods and services (GST). There is no capital gains tax although certain "gains" such as profits on the sale of patent rights are deemed to be income, income tax does apply to property transactions in certain circumstances, particularly speculation. Local property taxes (rates) are managed and collected by local authorities. Some goods and services carry a specific tax, referred to as an excise or a duty such as alcohol excise or gaming duty. These are collected by a range of government agencies such as the New Zealand Customs Service. There is no social security (payroll) tax or land tax in New Zealand.

In the 2010 New Zealand budget, personal tax rates were cut with the top personal tax rate reduced from 38% to 33%[33] The cuts gave New Zealand the second-lowest personal tax burden in the OECD. Only Mexico's citizens had a higher percentage-wise "take home" proportion of their salaries.[34]

The cuts in income tax were estimated to have reduced revenue by $2.46 billion.[35] To compensate, GST was raised from 12.5% to 15%.[36] Treasury figures show that top income earners in New Zealand pay between 6% and 8% of their income on GST. Those at the bottom end, earning less than $356 a week, spend between 11% and 14% on GST. Based on these figures, the New Zealand Herald predicted that putting GST up to 15% would increase living costs for the poor more than twice as much as for the rich.[37]

Corruption
Main article: Corruption in New Zealand

New Zealand was ranked 1st on the Transparency International Corruption Perceptions Index (CPI) of 2017 with a score of 89 out of 100.[38] In 2018, New Zealand was ranked 2nd on the Corruption Perceptions Index with a score of 87 out of 100.[39] In 2019, New Zealand was ranked 1st on the Corruption Perceptions Index with a score of 87 out of 100.[40] Although New Zealand is one of the least corrupt countries in the world, corruption exists in New Zealand.[41]

Regional economies
Map of regions of New Zealand

In 2015 Statistics New Zealand published details of the break-down of Gross Domestic Product in the Regions of New Zealand for the year ended March 2015:[42]

Region (position on map) GDP (2015, NZ$ million) Share of national GDP GDP per capita (NZ$, 2015)
Northland (1) 5,869 2.4% 35,103
Auckland (2) 88,295 36.6% 56,997
Waikato (3) 19,649 8.1% 45,160
Bay of Plenty (4) 12,292 5.1% 43,159
Gisborne (5) 1,688 0.7% 35,769
Hawke's Bay (6) 6,591 2.7% 41,323
Taranaki (7) 8,756 3.6% 75,941
Manawatū-Whanganui (8) 9,197 3.8% 39,372
Wellington (9) 32,617 13.5% 65,974
North Island 184,955 76.7% 53,053
Tasman / Nelson (10 / 11)[* 1] 4,199 1.7% 42,456
Marlborough (12) 2,466 1.0% 54,676
West Coast (13) 1,656 0.7% 50,491
Canterbury (14)[* 2] 32,882 13.6% 56,575
Otago (15) 10,173 4.2% 47,671
Southland (16) 4,857 2.0% 50,119
South Island 56,232 23.3% 52,637
New Zealand 241,187 100.0% 52,953
  1. Nelson and Tasman are combined by Statistics New Zealand, but are separate regions.
  2. Includes the Chatham Islands.

Unemployment

Prior to the economic shock created by Britain's decision to join the EEC in 1973, removing it as New Zealand's primary market for exports, unemployment in New Zealand was very low. The official number of people unemployed in 1959 was only 21. A year later it was 22.[43] A recession and collapse in wool prices in 1966 led to unemployment rising by 131%, but was still only a 0.7% increase in unemployment.[44]

After 1973, unemployment became a persistent economic and social issue in New Zealand. Recessions from 1976 to 1978 and 1982 to 1983 greatly increased unemployment again.[44] Between 1985 and 2012, the unemployment rate averaged 6.29%. After the stock market crash of 1987, unemployment rose 170%[44] reaching an all-time high of 11.20% in September 1991.[45] The Asian financial crisis of 1997 set unemployment upwards again, by 28%.[44] By 2007, it had dropped again and the rate stood at 3.5% (December 2007), its lowest level since the current method of surveying began in 1986. This gave the country the 5th-best ranking in the OECD (with an OECD average at the time of 5.5%). The low numbers correlated with a robust economy and a large backlog of job positions at all levels.[46] Unemployment numbers are not always directly comparable between OECD nations, as they do not all keep labour market statistics in the same way.

The percentage of the population employed also increased in recent years, to 68.8% of all inhabitants, with full-time jobs increasing slightly, and part-time occupations decreasing in turn. The increase in the working population percentage is attributed to increasing wages and higher costs of living moving more people into employment.[46] The low unemployment also had some disadvantages, with many companies unable to fill jobs.

From December 2007, mainly as a result of the global financial crisis, unemployment numbers began to rise. This trend continued until September 2012, reaching a high of 6.7%. It began to recover after that point sitting at 3.9% as of June 2019.[47]

Housing affordability

Shamubeel Eaqub, formerly a principal economist at the New Zealand Institute of Economic Research (NZIER), said that thirty years ago, an average house in New Zealand cost two or three times the average household income. House prices rose dramatically in the first years of the 21st century and by 2007, an average house cost more than six times household income.[48] International surveys in 2013 showed that housing was unaffordable in all eight of New Zealand's major markets – unaffordable being defined by house prices which are more than three times the median regional income.[49]

Demand for property has been strongest in Auckland pushing up prices in the city by 52% in the last five years. In 2014 the average sales price there went from $619,136 to $696,047, a rise of 12% in that 12-month period alone.[50] In 2015, prices rose another 14%.[51] This makes Auckland New Zealand's least affordable market and one of the most expensive cities in the world[52] with houses costing 8 times the average income.[49] Between 2012 and April 2016, the average Auckland home increased in price by just over two-thirds reaching $931,000 – higher than the cost of an average home in Sydney.[53]

As a result, more and more people are being pushed out of the property market. Those on low incomes are hardest hit, affecting many Maori and Pacific Islanders. New Zealand's relatively high mortgage rates are exacerbating the problem[54] even making it difficult for young people with steady jobs to buy their first home.[55] According to a submission made to the Housing Affordability Inquiry,[56] escalating house prices are also impacting on many middle income groups, especially those with large families.[57] Mortgage adviser Bruce Patten said the trend was 'disturbing' and added to the gap between the 'haves and have-nots'.[58]

Property analysis company CoreLogic says 45% of house purchases in New Zealand are now made by investors who already own a home, while another 28% are made by people moving from one property to another. Approximately 8% are being made by overseas cash buyers[48] primarily Australians, Chinese, and British – although most economists believe foreign investment is currently too small to have a significant effect on property prices.[59]

Whether purchases are made by New Zealanders or foreigners, it is generally those who are already well off that are buying the bulk of properties on the market. This has had a dramatic effect on home ownership rates by Kiwis, now at its lowest level since 1951. Even as recently as 1991, 76% of New Zealand homes were occupied by their owners. By 2013, this was down to 63%, indicating that more and more people are having to rent.[48] Raewyn Cox, chief executive of the Federation of Family Budgeting, says: "High prices and high interest rates (have) sentenced a rising number of New Zealanders to be lifetime tenants" where they are "stuck in expensive rental situations, heading towards retirement."[54]

Inequality
Main article: Economic inequality in New Zealand
An egalitarian New Zealand was briefly realised in the interwar and post-war periods, when successive governments sponsored a massive state housing programme.

Between 1982 and 2011, New Zealand's gross domestic product grew by 35%. Almost half of that increase went to a small group who were already the richest in the country. During this period, the average income of the top 10% of earners in New Zealand (those earning more than $72,000)[60] almost doubled going from $56,300 to $100,200. The average income of the poorest tenth increased by 13% from $9700 to $11,000.[61]

Growing inequality is confirmed by Statistics New Zealand which keeps track of income disparity using the P80/20 ratio. This ratio shows the difference between high household incomes (those in the 80th percentile) and low household incomes (those in the 20th percentile). The inequality ratio increased between 1988 and 2004, and decreased until the onset of the Global Financial Crisis in 2008, increasing again to 2011 and then declining again from then. By 2013, the disposable income of high-income households was more than two-and-a-half times larger than that of low-income households.[62] Highlighting the disparity, the top 1% of the population now owns 16% of the country's wealth – the richest 5% owns 38%[63] – while half the population, including beneficiaries and pensioners, earn less than $24,000.[60]

Superannuation
Main article: Welfare in New Zealand § Pensions

New Zealand has a universal superannuation scheme. Everyone aged 65 years old or over, who is a New Zealand citizen or permanent resident and normally lives in New Zealand at the time they apply is eligible. They must also have lived in New Zealand for at least 10 years since they turned 20 with five of those years being since they turned 50. Time spent overseas in certain countries and for certain reasons may be counted for New Zealand Superannuation. New Zealand Superannuation is taxed, the rate of which depends on their other income. The amount of Superannuation paid depends on the person's household situation. For a married couple the net tax amount is set by legislation to be no less than 66% of net average wage.

Because of the growing number of elderly becoming eligible, superannuation costs rose from $7.3 billion a year in 2008 to $10.2 billion in 2014.[64] In 2011 there were twice as many children in New Zealand as elderly (65 and over); by 2051 there are projected to be 60% more elderly than children. In the ten years from 2014, the number of New Zealanders over the age of 65 is projected to grow by about 200,000.[65]

This poses a significant problem for superannuation. The age of eligibility was gradually increased from 61 to 65 between 1993 and 2001.[66] In that year the Labour Government of Helen Clark introduced the New Zealand Superannuation Fund (known as the "Cullen Fund" after Minister of Finance Michael Cullen) to part-fund the superannuation scheme into the future. As at October 2014, the fund managed NZ$27.11 billion, 15.9% of which was invested in New Zealand.[67]

In 2007 a new individual saving scheme was introduced by the same Government, known as KiwiSaver. The main purpose of KiwiSaver is for retirement savings, but younger participants can also use it to save a deposit for their first home. The scheme is voluntary, work-based and managed by private sector companies called KiwiSaver providers. As at 30 June 2014, KiwiSaver had 2.3 million active members or 60.9% of New Zealand's population under 65. NZ$4 billion was contributed annually, and a total of NZ$19.1 billion has been contributed since 2007.[68]

Infrastructure

According to the National Infrastructure Unit of the Treasury, New Zealand "...continues to face challenges to its infrastructure; all forms of infrastructure are long-term investments, and change does not come about easily or quickly."[69]

Transport
Main article: Transport in New Zealand
Highways, rail lines and an inter-island ferry in central Wellington

New Zealand's transport infrastructure is "generally well developed."[70]

Road network

The New Zealand state highway network consists of 11,000 km of road, with 5981.3 km in the North Island and 4924.4 km in the South Island, built and maintained by the NZ Transport Agency, and paid for from general taxation and fuel excise duty. Heavy road users must pay Road User Charges as well, there is limited use of tolling on state highways. There is also 83,000 km of local roads built and maintained by local authorities.[71]

Railway network

The railway network is owned by state-owned enterprise KiwiRail and consists of 3,898 km of railway line, built to the narrow gauge of 1,067 mm (3 ft 6 in).[70] Of this, 506 km is electrified.[72]

Airways

There are seven international airports and twenty-eight domestic airports.[70] Air New Zealand, 52% government-owned,[73] is the national carrier and a state owned enterprise. Airways New Zealand, another state owned enterprise, provides air traffic control and communications.

Seaports

New Zealand has 14 international seaports.[70]

Telecommunications
Main article: Telecommunications in New Zealand

Present-day telecommunications in New Zealand include telephony, radio, television, and internet usage. A competitive telecommunications market has seen mobile prices drop to some of the lowest in the OECD.[74] The copper wire and fibre cable networks are mostly owned by Chorus Limited, a publicly listed company. Chorus wholesales services to retail providers (such as Spark). In the mobile sector, there are three operators: Spark, Vodafone and 2degrees.

Internet
Main article: Internet in New Zealand

New Zealand has a high rate of internet use. As of October 2014, there are 1,916,000 broadband connections and 65,000 dial-up connections in New Zealand, of which 1,595,000 are residential and 386,000 are business or government.[75] The majority of connections are digital subscriber line over phone lines.

The Government has two plans to bring Ultra-Fast Broadband to 97.8% of the population by 2019, and is spending NZ$1.35 billion on public-private partnerships to roll out fibre-to-the-home connection in all main towns and cities with population over 10,000. The program aims to deliver ultra-fast broadband capable of at least 100 Mbit/s download and 50Mbit/s upload to 75% of New Zealanders by 2019.[76] In total, 1,340,000 households in 26 towns and cities will be connected.

Gigabit internet (1000Mbit/s download speeds) was made available to the entire Ultra-Fast Broadband (UFB) footprint on 1 October 2016, in an announcement from Chorus.[77]

A$300 million Rural Broadband Initiative (RBI) has also been introduced by the Government, with the aim to bring broadband of at least 5Mbit/s to 86% of rural customers by 2016.[78]

Energy
Main article: Energy in New Zealand

From 1995 to 2013, the energy intensity of the economy per unit of GDP declined by 25 percent.[79] A contributing factor is the growth of relatively less energy-intensive service industries.[80] New Zealand will be potentially among the main winners after the global transition to renewable energy is completed; the country is placed very high – no. 5 among 156 countries – in the index of geopolitical gains and losses after energy transition (GeGaLo Index).[81]

Electricity
Main articles: New Zealand electricity market and Electricity sector in New Zealand

The electricity market is regulated by the Electricity Industry Participation Code administered by the Electricity Authority (EA).[82] The electricity sector uses mainly renewable energy sources such as hydropower, geothermal power and increasingly wind energy.

The 83% share of renewable energy sources[83] makes New Zealand one of the most sustainable economies in terms of energy generation.[84] New Zealand suffers from a geographical imbalance between electricity production and consumption. The most substantial electricity generation (both existing and as remaining potential) is located on the South Island and to a lesser degree in the central North Island, while the main demand (which is continuing to grow) is in the northern North Island, particularly the Auckland Region. This requires electricity to be transmitted north through a power grid which is reaching its capacity more often.

History
Agriculture (especially dairy farming – such as for the Fonterra plant shown) is a major export earner
An aerial view of the Kinleith Mill. Forestry exports are an important component of New Zealand's economy.

For many years New Zealand's economy was built on a narrow range of agricultural products, such as wool, meat and dairy. These products became New Zealand's staple and most valuable exports, underpinning the success of the economy, from the 1850s until the 1970s.[85] For example, from 1920 to the late 1930s, the dairy export quota was usually around 35% of New Zealand's total exports, and in some years made up almost 45%.[86] Due to the high demand for these primary products, manifested by the New Zealand wool boom of 1951, New Zealand had one of the highest standards of living in the world for 70 years.[87]

In the 1960s, prices for these traditional exports declined, and in 1973 New Zealand lost its preferential trading position with the United Kingdom when the latter joined the European Economic Community. Partly as a result, from 1970 to 1990, the relative New Zealand GDP per capita adjusted for purchasing power declined from about 115% of the OECD average to 80%.[88]

Between 1984 and 1993, New Zealand changed from a somewhat closed and centrally controlled economy to one of the most open economies in the OECD.[89] In a process often referred to in New Zealand as Rogernomics, successive governments introduced policies which dramatically liberalised the economy.

In 2005 the World Bank praised New Zealand as the most business-friendly country in the world.[31][90] The economy diversified and by 2008, tourism had become the single biggest generator of foreign exchange.[91]

Early years

Prior to European settlement and colonisation of New Zealand, Māori had a subsistence economy, the basic economic unit of which was the sub-tribe or hapū.[92] From the 1790s, the waters around New Zealand were visited by British, French and American whaling, sealing and trading ships. Their crews traded European goods, including guns and metal tools, for Māori food, water, wood, flax and sex.[93] Their increasing lawlessness and plans for formal settlement by the New Zealand Company were two of the drivers behind the signing of the Treaty of Waitangi in 1840, which established New Zealand as a colony. Settlers continued to be dependent on Māori for food until the 1860s.[92][93] From then immigrants became self-sufficient in farming, and started quarrying a variety of minerals including gold, which was discovered at Gabriel's Gully in Central Otago, leading to the Otago Gold Rush in 1861. Settlements flourished in areas where these quarries were established. In the 1880s, Dunedin became the richest city in the country largely on the back of investments from the gold rush.[94]

Sheep farming began in the Wairarapa but soon spread up and down the east coast from Southland to the East Cape once rudimentary roads and transport became available. Much of the land used for farming was taken or leased from Māori. Sheep numbers grew quickly and by the mid-1850s, there were already a million sheep in New Zealand; by the early 1870s, there were 10 million.[85] Wool became the first staple export, initially exported from the Wellington settlement in the late 1850s, although unrefrigerated meat and dairy products were exported as far as Australia.[85]

In the 1870s, Julius Vogel was periodically both colonial treasurer and premier. He viewed New Zealand as a "Britain of the South Seas"[95] and began the development of infrastructure in New Zealand investing heavily in roads, railways, telegraphs and bridges funded by public borrowing.[96] Progress slowed after the collapse of the City of Glasgow Bank in 1878 which led to a contraction in credit from London, the centre of the world's financial system at the time. Economic activity was depressed for some years afterwards, until refrigeration was introduced in 1882.[87] This enabled New Zealand to start exporting meat and other frozen products to the United Kingdom. Refrigeration transformed and shaped the development of the economy but, in the process, established New Zealand's economic dependence on Britain.

The success of refrigeration was directly related to the growth and development of farming in the country. In the 19th century, the bulk of economic activity was in the South Island of New Zealand. From around 1900, dairy farming became increasingly viable in areas which were less suitable for sheep, particularly in Northland, the Waikato and Taranaki. As dairying developed, the North Island slowly became more important to the economy.[97] As more land was cultivated and farmed, Britain became the sole market for New Zealand meat and animal products. The dairy farming can therefore be seen as a response to the powerful market demands in Europe, transforming not only New Zealand's countryside, economy and production techniques, but also causing migration in order to create the needed supply of dairy farming.[98]

20th century

The Reserve Bank of New Zealand was established as New Zealand's central bank on 1 August 1934. Up until that time New Zealand's monetary policy had been set in the United Kingdom, and the New Zealand Pound was issued by private banks. A separate central bank gave New Zealand's government control of monetary policy for the first time,[99] although New Zealand remained part of the sterling area by pegging its pound to the British pound sterling until the introduction of the New Zealand dollar in 1967, after which the dollar was instead pegged to the United States dollar.[100]

By the mid-20th century, pastoral-farming products made up more than 90% of New Zealand's exports,[97] 65% of which was going to Britain in the 1950s. Having a secure market with guaranteed prices also enabled New Zealand to impose high tariffs on imported goods from other countries. Tough import controls gave local manufacturers the ability to produce similar products locally, broaden the base of jobs available in New Zealand and still compete against higher priced imports.

This prosperity continued up to 1955 at which point Britain stopped giving New Zealand guaranteed prices for its exports.[101] From then on, what New Zealand received was dictated by the free market. As a result, during the 1950s and 1960s the country's standard of living began to slip as the export sector was no longer able to pay for the level of imported goods required to meet the country's growing consumerism.

Tiwai Point Aluminium Smelter, opened in 1971

Britain applied to join the European Economic Community (EEC) in 1961, but was vetoed by the French. The government of Keith Holyoake reacted by attempting to diversify New Zealand's export markets, signing the first free trade agreement (Australia New Zealand Free Trade Agreement) in 1965,[102] and opening new diplomatic posts in Hong Kong, Jakarta, Saigon, Los Angeles and San Francisco.[86] Britain applied again to join the EEC in 1967, and entered into negotiations for membership in 1970. Holyoake's deputy and successor, Jack Marshall, (briefly Prime Minister in 1972) negotiated continued access for New Zealand exports to the United Kingdom under the so-called "Luxembourg Agreement".[103]

Britain gained full membership of the EEC on 1 January 1973, and all trade agreements with New Zealand came to an end, except the Luxembourg Agreement.[103] By the end of that year, only 26.8% of New Zealand's exports were to Britain.[104] This had a significant effect on the standard of living. In 1953, New Zealand had the third highest standard in the world. By 1978, it had dropped to 22nd place.[101]

Having lost unrestricted access to its traditional market, New Zealand continued to search for alternative export markets and diversify its economy. The Government of Norman Kirk, who succeeded Marshall, put greater emphasis on expanding New Zealand's trade, especially with South East Asia. Following the Yom Kippur War in October 1973, an oil embargo was put in place by the Middle Eastern oil exporters, leading to the 1973 oil crisis. This compounded New Zealand's dire economic situation further. Inflation greatly increased as the cost of transport and imported goods soared, causing standards of living to decline.[105]

Think Big
Main article: Think Big

Following the 1979 energy crisis resulting from the Iranian Revolution of that year, Robert Muldoon, the prime minister between 1975 and 1984, instituted an economic strategy known as Think Big. Large scale industrial plants were established based on New Zealand's abundant natural gas. A new range of products for export such as ammonia, urea fertilizer, methanol and petrol were produced and with greater use of electricity (with the electrification of the North Island Main Trunk railway) with the goal that this would reduce New Zealand's dependence on oil imports.[91]

Other projects included the Clyde Dam on the Clutha River, which was built to meet a growing demand for electricity, and the expansion of the New Zealand Steel plant at Glenbrook.[106]

The Tiwai Point Aluminium Smelter, which opened in 1971, was also upgraded as part of the Think Big strategy and now brings in approximately NZ$1 billion in exports every year.[107]

Unfortunately for New Zealand, most of these projects only came on line at the same time as oil prices dropped during the 1980s oil glut. The price of crude went from more than US$90 a barrel in 1980, to about US$30 a few years later. Because these Think Big projects required massive borrowing to get started, public debt soared from $4.2 billion in 1975 when Muldoon became prime minister to $21.9 billion when he left office nine years later. Inflation remained rampant, averaging 11% in the 1980s.[105] Once Labour came to power in 1984, many of these projects were sold to private industry as part of a wider sale of state-assets.[106]

The Muldoon Government did make some moves towards deregulation however. For example, in 1982 it removed the transport licensing restrictions on road carriers carting goods more than 150 km, and turned the Railways Department into a statutory corporation.

Rogernomics
Main article: Rogernomics

Between 1984 and 1993, New Zealand underwent radical economic reform, moving from what had probably been the most protected, regulated and state-dominated system of any capitalist democracy to an extreme position at the open, competitive, free-market end of the spectrum.[108]

The Fourth Labour government, elected in July 1984, moved away from government intervention in the economy and allowed free market mechanisms to dominate. These reforms became known as "Rogernomics", named after minister of finance from 1984 to 1988, Roger Douglas. The changes included making the Reserve Bank independent of political decisions; performance contracts for senior civil servants; public sector finance reform based on accrual accounting; tax neutrality; subsidy-free agriculture; and industry-neutral competition regulation. Government subsidies including agricultural subsidies were eliminated; import regulations were loosened up; the exchange rate was floated; and controls on interest rates, wages, and prices were removed; and personal rates of taxation were reduced. Tight monetary policy and major efforts to reduce the government budget deficit brought the inflation rate down from an annual rate of more than 18% in 1987. The deregulation of government-owned enterprises in the 1980s and 1990s reduced government's role in the economy and permitted the retirement of some public debt.

The new Government was faced with an exchange rate crisis the day after it was elected. Speculators expected the change of government to result in a 20% devaluation of the New Zealand dollar, which led to the 1984 New Zealand constitutional crisis due to Muldoon's refusal to devalue, worsening the currency crisis further. As a result, the dollar was floated on 4 March 1985, allowing for the value of the dollar to change with the market.[109] Prior to the dollar being floated, the dollar was pegged against a basket of currencies.[109]

Financial markets were deregulated and tariffs on imported goods lowered and phased out. At the same time subsidies to many industries, notably agriculture, were removed or significantly reduced. Income and company taxes were reduced and the top marginal tax rate was reduced from 66% to 33%. These were replaced by a comprehensive tax on goods and services (GST) initially set at 10%, then increased to 12.5% and recently increased to 15% in 2011. A surtax on universal superannuation was also introduced.[93] Many government departments were corporatised, and from 1 April 1987 became State owned enterprises, required to make a profit. The new corporations shed thousands of jobs adding to unemployment; Electricity Corporation 3,000; Coal Corporation 4,000; Forestry Corporation 5,000; New Zealand Post 8,000.[110]

The wage and price freeze of the early eighties coupled with the removal of financial restrictions and a lack of investment opportunities, led to a speculative bubble on New Zealand's sharemarket, sharemarket crash of 1987, in which New Zealand's sharemarket shed 60% from its 1987 peak, and taking several years to recover.[111][112]

Inflation continued to be a major problem afflicting the New Zealand economy. Between 1985 and 1992, inflation averaged 9% per year and the economy was in recession.[113] The unemployment rate rose from 3.6% to 11%,[114] New Zealand's credit rating dropped twice, and foreign debt quadrupled.[113] In 1989 the Reserve Bank Act 1989 was passed, creating strict monetary policy under the sole control of the Reserve Bank Governor. From then on the Reserve Bank focused on keeping inflation low and stable, using the Official Cash Rate (OCR) – the price of borrowing money in New Zealand – as its primary means to do so. As a result, inflation rates fell to an average of 2.5% in the 1990s, compared to 12% in the 1970s.[105] However, the tightening of monetary policy contributed to rising unemployment in the early 1990s.[115]

The Labour Party was greatly divided over Rogernomics, especially following the 1987 sharemarket crash and its effect on the economy, which slumped along with the rest of the world into recession in the early 1990s. The National Party was returned to power at the 1990 general election and Ruth Richardson became minister of finance under Prime Minister Jim Bolger. The new Government was again thrown a major economic challenge, with the then state-owned Bank of New Zealand needing a bail-out to stay operational.

Richardson's first budget in 1991, nicknamed the 'Mother of all Budgets',[116] attempted to address constant fiscal deficits and borrowing by cutting state spending. Unemployment and social welfare benefits were cut and 'market rents' were introduced for state houses – in some cases tripling the rents of low-income people.[117] Richardson also introduced user-pays requirements in hospitals and schools.[116] These reforms became known derisively as Ruthanasia.

By this time, New Zealand's economy faced serious social problems; the number of New Zealanders estimated to be living in poverty grew by at least 35% between 1989 and 1992;[113] many of the promised economic benefits of the experiment never materialised.[118] Gross domestic product per capita stagnated between 1986–87 and 1993–94, and by March 1992 unemployment rose to 11.1%[119] Between 1985 and 1992, New Zealand's economy grew by 4.7% during the same period in which the average OECD nation grew by 28.2%.[120] From 1984 to 1993 inflation averaged 9% per year, New Zealand's credit rating dropped twice, and foreign debt quadrupled.[113] Between 1986 and 1993, the unemployment rate rose from 3.6% to 11%.[121]

Since the deregulation of the postal sector, different postal operators can install mail collection boxes in New Zealand's streets

Deregulation also created a business-friendly regulatory framework which has benefited those able to take advantage of it. A 2008 survey in The Heritage Foundation and Wall Street Journal ranked New Zealand 99.9% in "Business freedom", and 80% overall in "Economic freedom", noting that it takes, on average, only 12 days to establish a business in New Zealand, compared with a worldwide average of 43 days.[122]

Deregulation has also been blamed for other significant negative effects. One of these was the leaky homes crisis, whereby the loosening up of building standards (in the expectation that market forces would assure quality) led to many thousands of severely deficient buildings, mostly residential homes and apartments, being constructed over a period of a decade. The costs of fixing the damage has been estimated at over NZ$11 billion (as at 2009).[123]

21st century

Unemployment continued to fall from 1993 to 1994 fiscal year, until the onset of the 1997 Asian financial crisis again pushed the rate higher.[124] By 2016 the unemployment rate decreased to 5.3 percent, the lowest level in 7 years.[125]

Between 2000 and 2007, the New Zealand economy expanded by an average of 3.5% a year driven primarily by private consumption and the buoyant housing market. During this period, inflation averaged only 2.6% a year, within the Reserve Bank's target range of 1% to 3%.[126] However, in early 2008 the economy entered recession, before the effects of the global financial crisis (GFC) set in later that year. A drought over the 2007/08 summer led to lower production of dairy products in the first half of 2008. Domestic activity slowed sharply over 2008 as high fuel and food prices dampened domestic consumption, while high interest rates and falling house prices drove a rapid decline in residential investment.[126]

Around the world instability was developing in the finance sector. This reached a peak in September 2008 when Lehman Brothers, a major American bank, collapsed propelling the world into the global financial crisis.[127]

Finance company collapses
Main article: Finance company collapses, 2006–2012 (New Zealand)

Uncertainty began to dominate the global financial and economic environment. Business and consumer confidence in New Zealand plummeted as dozens of finance companies collapsed.[128] To try and stop a flight of funds from New Zealand institutions to those in Australia, the Government established the Crown Retail Deposit Guarantee Scheme to cover depositors funds in the event that a bank or finance company went broke.[129] This protected some investors but nevertheless, at least 67 finance companies collapsed within a short period of time.[130] The largest of these was South Canterbury Finance which cost taxpayers NZ$1.58 billion when the company collapsed in August 2010.[131] The directors of many of these finance companies were subsequently investigated for fraud and some high-profile directors went to prison.[132][133][134][135][136]

In an attempt to stimulate the economy, the Reserve Bank lowered the Official Cash Rate (OCR) from a high of 8.25% (July 2008) to an all-time low of 2.5% at the end of April 2009.[126]

"Rock star" economy

Fortunately for New Zealand, the recession was relatively shallow compared to many other nations in the OECD, it was sixth least affected out of the 34 member nations with negative real GDP growth totaling 3.5%.[126] In 2009 the economy picked up, led by strong demand from major trading partners Australia and China, and historically high prices for New Zealand's dairy and log exports. In 2010 the GDP grew by a modest 1.6%, but over the next couple of years economic activity continued to improve, driven by the rebuild in Canterbury after the Christchurch earthquakes and recovery in domestic demand.[126] Through 2011, global conditions deteriorated and the terms of trade eased off their 2011 peak, continuing to moderate until September 2012. Since then, commodity prices have rebounded strongly, with strong demand from China and the international situation improving. Commodity prices have been at record highs in recent quarters and remain elevated. High commodity prices are expected to provide a considerable boost to nominal GDP growth in the near term.[126]

In 2013 the economy grew 3.3%. HSBC chief economist for Australia and New Zealand, Paul Bloxham, was so impressed that he predicted New Zealand's growth would outpace most of its peers, and he described New Zealand as the "rock star economy of 2014".[137] Another financial commentator said the New Zealand dollar was the "hottest" currency of 2014.[138] Only three months later, the New Zealand Productivity Commission expressed concern about low living standards and problems affecting the long-term drivers of growth. Paul Conway, Director of Economics and Research at the Productivity Commission, wrote: "New Zealand's broad policy settings should generate GDP per capita 20 per cent above the OECD average, but the actual result is more than 20 per cent below average. We may be punching above our weight, but that’s only because we are in the wrong weight division!"[139] In August, Bloxham admitted that "the sharp decline in dairy prices over the last six months has clouded the outlook somewhat".[140] In December however Bloxham stated that he thought the New Zealand economy would continue to grow strongly.[141]

In 2014 increased attention was paid to the growing gap between rich and poor. In The Guardian, Max Rashbrook said policies implemented by both Labour and National governments have increased inequality. He claims that for twenty years outrage "has been muted", but "Alarm bells are finally beginning to sound. Recent polling shows three-quarters of New Zealanders think theirs is no longer an egalitarian country".[142]

Trade

New Zealand's small size and long distances from major world markets creates significant challenges in its ability to compete in global markets. Australia, New Zealand's closest neighbour, is New Zealand's biggest trading partner. In 2018, New Zealand's main trading partners were China, Australia, the European Union, the United States and Japan. Together, these five partners account for 66% of New Zealand's two-way trade.[143][144] In March 2014, the total value of goods exported from New Zealand topped $50 billion for the first time, up from $30 billion in 2001.[145] New Zealand Trade and Enterprise (NZTE) offers strategic advice and support to New Zealand businesses wanting to export goods and services to other countries.

Trade agreements
Free trade agreements (FTAs) New Zealand is a party to.
  New Zealand
  Current FTAs
  Proposed Bilateral FTAs
  Proposed Regional Bloc FTAs

Since 1960s New Zealand has pursued free trade agreements with many countries to diversify its export markets and increase the competitiveness of New Zealand's exports to the world.[146] As well as reducing barriers to trade, Trade Agreements New Zealand has entered into are designed to ensure existing access is maintained. Trade agreements establish rules by which trade can take place and ensure regulators and officials in countries New Zealand is trading with work closely together.[146]

Australia
Australia New Zealand Closer Economic Relations Trade Agreement 28 March 1983 – signed by Laurie Francis & Lionel Brown

Australia is New Zealand's largest bilateral trading partner.[144] In 2013, trade between New Zealand and Australia was worth NZ$25.6 billion.[144] Economic and trading links between Australia and New Zealand are underpinned by the "Closer Economic Relations" (CER) agreement, which allows for free trade in goods and most services. Since 1990, CER has created a single market of more than 25 million people. Australia is now the destination of 19% of New Zealand's exports, including light crude oil, gold, wine, cheese and timber, as well as a wide range of manufactured items.

The CER also creates a free labour market which allows New Zealand and Australian citizens to live and work freely in each other's country together with mutual recognition of professional qualifications. This means individuals who are registered to practise an occupation in one country can register to practise an equivalent occupation in the other country. Banking regulation and supervision are co-ordinated through the Trans-Tasman Council on Banking Supervision and there are also ongoing discussions about co-ordinating Australian and New Zealand business law.[147]

China

China is New Zealand's largest trading partner buying primarily meat, dairy products and pine logs.[144] In 2013, trade between New Zealand and China was worth NZ$16.8 billion.[144] This has occurred primarily because of soaring demand for imported dairy products, following the Chinese milk scandal in 2008. Since then demand for milk products has been so strong that in the 12 months to March 2014, there was a 51% increase in total exports to China.[148] The increase was facilitated by the New Zealand–China Free Trade Agreement which came into force on 1 October 2008. Since that year exports to China have more than tripled.[149]

United States

The United States is New Zealand's third largest trading partner.[144] In 2013, bilateral trade between the two countries was valued at NZ$11.8 billion.[144] New Zealand's main exports to the United States are beef, dairy products and lamb. Imports from the US include specialised machinery, pharmaceutical products, oil and fuel. In addition to trade, there is a high level of corporate and individual investment between the two countries and the US is a major source of tourists coming to New Zealand. In March 2012, the United States had a total of $44 billion invested in New Zealand.[150] A number of US companies have subsidiary branches in New Zealand. Many operate through local agents, with some joint venture associations. The United States Chamber of Commerce is active in New Zealand, with a main office in Auckland and a branch committee in Wellington.

According to the Ministry of Foreign Affairs, New Zealand and the United States "share a deep and longstanding friendship based on a common heritage, shared values and interests, and a commitment to promoting a free, democratic, secure and prosperous world".[151] This common background has not translated into a free trade agreement between the two countries.[152]

Japan and other Asian economies

Japan is New Zealand's fourth largest trading partner. In the 21st century, Asian economies have been developing rapidly providing significant demand for New Zealand's exports. New Zealand also trades with Taiwan, Hong Kong, Malaysia, Indonesia, Singapore, Thailand, India and the Philippines and this now accounts for around 16% of total exports.[147] New Zealand initiated a free trade agreement with Singapore in September 2000 which was extended in 2005 to include Chile and Brunei and is now known as the P4 agreement.

European Union

A growing number of New Zealand companies use the United Kingdom as a base to supply their products to the European market.[153] However trade with the European Union is declining as demand from Asia continues to grow. The EU currently takes only 8% of New Zealand exports but provides around 12% of imports.[147]

In July 2014, negotiations on the Partnership Agreement on Relations and Cooperation (PARC) between New Zealand and the European Union were concluded.[154] The agreement covers the trade and economic relationship between the EU and New Zealand with a view to further liberalisation of trade and investment and acknowledges the intention of the European Union to upgrade its diplomatic presence in New Zealand with a resident ambassador.[155]

Relationship with Pacific Islands

The Pacific region with numerous islands is New Zealand's sixth largest trading market and is growing every year. In 2011 exports to Pacific Islands were worth over $1.5 billion up 12% on the previous year. Fiji is the biggest individual market followed very closely by Papua New Guinea, French Polynesia and New Caledonia. Goods exported to the islands include refined oil, construction materials, medicines, sheep meat, milk, butter, fruit and vegetables.[156] New Zealand also assists Pacific Islands with defence and regional security, and with management of the environment and fisheries.

Because of their small size, the Pacific Islands are some of the most vulnerable environments in the world and are on the receiving end of numerous cyclones every year. When disasters occur, they often have severe social and economic effects which last for years. Since 1992, New Zealand has co-operated with Australia and France to respond to disasters in the Pacific. New Zealand provides emergency supplies and transport, funding for roading and housing and the deployment of specialists to affected areas.[157]

Through the Ministry of Foreign Affairs and Trade, New Zealand also provides international aid and development funding to help stimulate sustainable economic development in underdeveloped economies. The New Zealand Aid Programme, allocated about $550m a year, is focused primarily on promoting development in the Pacific. The allocation of $550 million represents about 0.26% of New Zealand's gross national income (GNI).[158]

Foreign investment

New Zealand welcomes and encourages foreign investment, which is overseen by the Overseas Investment Office. In 2014 foreign direct investment totaled NZ$107.69 billion.[18] From 1989 foreign investment increased from $9.7 billion to $101.4 billion in 2013 – an increase of over 1,000%.[159] Between 1989 and 2007, foreign ownership of the New Zealand sharemarket went from 19% to 41% but has since dropped back to 33%.

In 2007, around 7% of all New Zealand agriculturally productive land was foreign-owned.[31] In 2011, economist Bill Rosenberg said that the figure is closer to 9% if foreign ownership of forestry is included.[160] In March 2013 the financial sector, which includes the four big Australian owned banks, was worth $39.3 billion accounting for the largest portion of the $101.4 billion foreign ownership of New Zealand companies.[159]

Impact

Between 1997 and 2007, foreign investors made $50.3 billion profit, 68% of which went overseas. The Campaign Against Foreign Control of Aotearoa (CAFCA) says this has a negative impact on the economy arguing that when foreign investors buy up New Zealand companies, they tend to cut staff and push down wages.[31] Foreign ownership has also done nothing to improve New Zealand's foreign debt. In 1984, private and public foreign debt was $16 billion ($50 billion in March 2013 dollars) which was less than half New Zealand's Gross Domestic Product at the time. By March 2013, total foreign debt stood at $251 billion, well over 100% of New Zealand's Gross Domestic Product.[159]

Other indicators
Tourism, like here on the Milford Sound (special bus with viewing gallery), is a major export earner for New Zealand

Industrial production growth rate: 5.9% (2004) / 1.5% (2007)

Household income or consumption by percentage share:

  • Lowest 10%: 0.3% (1991)
  • Highest 10%: 29.8% (1991)

Agriculture – products: wheat, barley, potatoes, pulses, fruits, vegetables; wool, beef, dairy products; fish

Exports – commodities: dairy products, meat, wood and wood products, fish, machinery

Imports – commodities: machinery and equipment, vehicles and aircraft, petroleum, electronics, textiles, plastics

Electricity:

  • Electricity – consumption: 34.88 TWh (2001) / 37.39 TWh (2006)
  • Electricity – production: 38.39 TWh (2004) / 42.06 TWh (2006)
  • Electricity – exports: 0 kWh (2006)
  • Electricity – imports: 0 kWh (2006)

Electricity – production by source:[83][161]

  • Hydro: 60% (2020)
  • Geothermal: 17% (2020)
  • Wind: 5% (2020)
  • Fossil Fuel: 17% (2020)
  • Nuclear: 0% (2020)
  • Other: 3.4% (2010)

Oil:

  • Oil – production: 42,160 barrels (6,703 m3) 2001 / 25,880 barrels (4,115 m3) 2006
  • Oil – consumption: 132,700 barrels (21,100 m3) 2001 / 156,000 barrels (24,800 m3) 2006
  • Oil – exports: 30,220 barrels (4,805 m3) 2001 / 15,720 barrels (2,499 m3) 2004
  • Oil – imports: 119,700 barrels (19,030 m3) 2001 / 140,900 barrels (22,400 m3) 2004
  • Oil – proven reserves: 89.62 million barrels (14,248,000 m3) January 2002

Exchange rates:
New Zealand dollars (NZ$) per US$1 – 1.4771 (2016), 1.2652 (2012), 1.3869 (2005), 1.5248 (2004), 1.9071 (2003), 2.1622 (2002), 2.3788 (2001), 2.2012 (2000), 1.8886 (1999), 1.8632 (1998), 1.5083 (1997), 1.4543 (1996), 1.5235 (1995)

gollark: We shrink the internet, either by wiping out a large portion of the internet *or* wiping out humanity.
gollark: There is, however, a solution.
gollark: The problem is, the internet is too large.
gollark: 2063.
gollark: Technically that's early.

See also

References
  1. "Year End Financial Statements". NZ Treasury. Retrieved 5 March 2017.
  2. "World Economic Outlook Database, April 2019". IMF.org. International Monetary Fund. Retrieved 29 September 2019.
  3. "World Bank Country and Lending Groups". datahelpdesk.worldbank.org. World Bank. Retrieved 29 September 2019.
  4. "Estimated resident population of New Zealand at 30 September 2019". stats.govt.nz. Statistics New Zealand. Retrieved 31 December 2019.
  5. "World Economic Outlook Database, October 2019". IMF.org. International Monetary Fund. Retrieved 20 October 2019.
  6. "World Economic Outlook Database, April 2020". IMF.org. International Monetary Fund. Retrieved 15 April 2020.
  7. "New Zealand Economic and Financial Overview" (PDF). New Zealand Treasury. 2012. pp. 19–23. Archived from the original (PDF) on 4 May 2017. Retrieved 17 March 2017.
  8. "Consumers price index: June 2019 quarter | Stats NZ".
  9. "Relative poverty rate at 50% of the median household income in OECD countries".
  10. "Household income and housing-cost statistics: Year ended June 2019". Statistics New Zealand. Table 9. Archived from the original (Spreadsheet) on 24 February 2020. Retrieved 24 February 2020.
  11. "Human Development Index (HDI)". hdr.undp.org. HDRO (Human Development Report Office) United Nations Development Programme. Retrieved 11 December 2019.
  12. "Inequality-adjusted HDI (IHDI)". hdr.undp.org. UNDP. Retrieved 22 May 2020.
  13. "Labour market statistics: June 2019 quarter". stats.govt.nz. Statistics New Zealand. Retrieved 23 October 2019.
  14. "The World Factbook". CIA.gov. Central Intelligence Agency. Retrieved 23 October 2019.
  15. "Ease of Doing Business in New Zealand". Doingbusiness.org. Retrieved 24 November 2017.
  16. "Goods and services trade by country: Year ended March 2020". Stats NZ. Retrieved 4 August 2020.
  17. "Balance of Payments and International Investment Position – M7". Statistics New Zealand. Reserve Bank of New Zealand. 19 December 2018. Retrieved 23 February 2019.
  18. "Financial Statements of the Government of New Zealand for the eight months ended 28 February 2018". New Zealand Treasury. 8 April 2018. Retrieved 17 February 2019.
  19. "Sovereigns rating list". Standard & Poor's. Retrieved 26 May 2011.
  20. Rogers, Simon; Sedghi, Ami (15 April 2011). "How Fitch, Moody's and S&P rate each country's credit rating". The Guardian. London. Retrieved 31 May 2011.
  21. Hall, Peter A.; Soskice, David (2001). Varieties of Capitalism: The Institutional Foundations of Comparative Advantage. Oxford University Press. p. 570. ISBN 9780191647703.
  22. "New Zealand in Profile 2014: Economy". Statistics New Zealand. March 2011. Retrieved 9 December 2014.
  23. "NZ Tech – About the Tech Sector". Retrieved 7 January 2020.
  24. "NZX Limited – Monthly Shareholder Metrics" (PDF). November 2014. Archived from the original (PDF) on 3 November 2017. Retrieved 11 December 2014.
  25. "Triennial Central Bank Survey, April 2013" (PDF). Triennial Central Bank Survey. Bank for International Settlements. Retrieved 25 March 2014. [pg.10 of PDF]
  26. "World Economic Outlook Database". International Monetary Fund. April 2006. Archived from the original on 11 June 2010. Retrieved 9 March 2015.
  27. "World Economic Outlook Database, April 2012". International Monetary Fund. April 2012. Retrieved 18 March 2015.
  28. "Social Progress Index – New Zealand". Social Progress Imperative. Archived from the original on 5 February 2015. Retrieved 5 February 2015.
  29. "National Accounts (Income and Expenditure): Year ended March 2014". Statistics New Zealand. 21 November 2014. Retrieved 3 December 2015.
  30. "New Zealand". The World Fact Book. Central Intelligence Agency. Retrieved 12 December 2014.
  31. McCarten, Matt (14 January 2007). "Foreign owners muscle in as New Zealand sells off all its assets". The New Zealand Herald.
  32. Bertram, Geoff (February 2009). "The banks, the current account, the financial crisis and the outlook" (PDF). Policy Quarterly. 5 (1). doi:10.26686/pq.v5i1.4288.
  33. "Personal tax cuts". IRD. 1 October 2010. Retrieved 9 March 2015.
  34. Dickison, Michael (12 May 2010). "NZ earners' tax burden second-lowest in OECD". The New Zealand Herald. Retrieved 18 June 2011.
  35. Bill English (20 May 2010). "Fact sheet – Personal tax cuts". The Beehive. Retrieved 9 March 2015.
  36. "GST rate increase". IRD.
  37. Collins, Simon Collins (30 January 2010). "GST rise will hurt poor the most". The New Zealand Herald. Retrieved 9 March 2015.
  38. "Transparency International Corruption Perceptions Index 2017". Transparency International. Retrieved 25 February 2018.
  39. https://www.transparency.org/cpi2018
  40. https://www.transparency.org/cpi2019
  41. https://www.transparency.org.nz/examples-of-corruption-in-new-zealand/
  42. "Regional Gross Domestic Product: Year ended March 2015". Statistics New Zealand. 9 March 2016. Retrieved 22 November 2016.
  43. "An Economic History of New Zealand in the Nineteenth and Twentieth Centuries". 11 August 2011. Archived from the original on 30 July 2011.
  44. "How bad is the Current Recession? Labour Market Downturns since the 1960s". Ministry of Business, Innovation and Employment. Archived from the original on 15 December 2014. Retrieved 15 December 2014.
  45. "Household Labour Force Survey: December 2015 quarter". Statistics New Zealand. 3 February 2016. Retrieved 4 December 2014.
  46. Daly, Michael (7 February 2008). "Unemployment at record low as job growth surges". The New Zealand Herald. APN Holdings. Archived from the original on 23 February 2013. Retrieved 7 August 2010.
  47. "Unemployment Rate". Statistics New Zealand. Retrieved 10 October 2019.
  48. "Why house prices are up and ownership is down". The New Zealand Herald. 18 July 2014.
  49. "Housing affordability getting worse". Stuff. 20 January 2014.
  50. "Auckland house prices continue their relentless rise". National Business Review. 8 January 2014.
  51. @anneherald, Anne Gibson Property editor, NZ Herald anne gibson@nzherald co nz (18 April 2016). "2016 house price hikes tipped by economist". The New Zealand Herald – via www.nzherald.co.nz.
  52. "House values soar in tight Auckland property market". The New Zealand Herald. 11 June 2014.
  53. Home truths: City of expensive sales tops Sydney, NZ Herald, 26 April 2016
  54. "NZ mortgage rates: How we compare with rest of the world". The New Zealand Herald. 18 October 2014.
  55. "Houses too far from reach?". The Dominion Post. 26 April 2014.
  56. "Housing Affordability Inquiry" (PDF). New Zealand Productivity Commission.
  57. Submission of the New Zealand Council of Trade Unions to the Productivity Commission on the Housing Affordability Inquiry, February 2012, p. 5
  58. "The fading dream of a first home in city". The New Zealand Herald. 15 October 2014.
  59. "Chinese investment in NZ housing tipped to rise". The New Zealand Herald. 17 October 2014.
  60. "NZ income gap at crisis level". Stuff. 19 September 2013.
  61. "Paradise for a few". The New Zealand Herald. 22 June 2013.
  62. "New Zealand Progress Indicators:Income inequality". Statistics New Zealand. August 2014. Retrieved 22 December 2014.
  63. "Brian Fallow: Wealth gap goes mainstream". The New Zealand Herald. 24 October 2014.
  64. "National lacks courage on retirement age – Act leader". The New Zealand Herald. 24 February 2014.
  65. "Population aging in New Zealand". Statistics New Zealand.
  66. "Brian Gaynor: NZ badly behind times with age pensions". The New Zealand Herald. 5 November 2011.
  67. "October 2014 Monthly Report" (PDF). New Zealand Superannuation Fund. Retrieved 14 December 2014.
  68. "KiwiSaver annual statistics". Inland Revenue. Retrieved 14 December 2014.
  69. "Infrastructure 2013 National State of Infrastructure Report" (PDF). National Infrastructure Unit, New Zealand Treasury. 2013. Retrieved 22 December 2014.
  70. "Connecting New Zealand – State of our infrastructure". Ministry of Transport. 26 April 2018.
  71. "Maintaining our network". NZ Transport Agency. Retrieved 15 December 2014.
  72. Bell, Mike. "New Zealand Transportation". move2nz. Retrieved 13 December 2016.
  73. "Frequently Asked Questions". Retrieved 12 September 2018.
  74. "2013 Annual Telecommunications Monitoring Report". Commerce Commission. 21 May 2014. Retrieved 22 December 2014.
  75. "Internet Service Provider Survey: 2014". Internet Service Provider Survey. Statistics New Zealand. 14 October 2014. ISSN 1178-0509. Retrieved 14 October 2014.
  76. "Ultra-Fast Broadband Initiative". Ministry of Business, Innovation and Employment. Retrieved 6 March 2014.
  77. "Chorus launches gigabit wholesale broadband services nationwide | Chorus". www.chorus.co.nz. Archived from the original on 30 October 2016. Retrieved 30 October 2016.
  78. "Rural Broadband Initiative contracts". Ministry of Business, Innovation and Employment.
  79. "Energy in New Zealand". MBIE. July 2014. Retrieved 3 August 2014.
  80. "Key Findings on New Zealand's Progress Using a Sustainable Development Approach". Statistics New Zealand. 2010. Retrieved 21 April 2012.
  81. Overland, Indra; Bazilian, Morgan; Ilimbek Uulu, Talgat; Vakulchuk, Roman; Westphal, Kirsten (1 November 2019). "The GeGaLo index: Geopolitical gains and losses after energy transition". Energy Strategy Reviews. 26: 100406. doi:10.1016/j.esr.2019.100406.
  82. "The Code". Electricity Authority / New Zealand government. Retrieved 11 November 2016.
  83. nzcpe (18 May 2020). "Climate explained: why switching to electric transport makes sense even if electricity is not fully renewable". Planetary Ecology. Retrieved 20 May 2020.
  84. "New Zealand Commits to 90% Renewable Electricity by 2025". RenewableEnergyWorld.com. Retrieved 11 November 2016.
  85. "Page 4 – Early pastoral economy". Te Ara: The Encyclopedia of New Zealand.
  86. McKinnon, Malcolm, ed. (1997). New Zealand Historical Atlas. David Bateman.
  87. "The introduction of refrigeration". NZ International Business Forum. Archived from the original on 13 May 2015. Retrieved 19 October 2014.
  88. Drew, Aaron. "New Zealand's productivity performance and prospects" (PDF). Bulletin. 70 (1). Archived from the original (PDF) on 8 May 2014. Retrieved 10 February 2008.
  89. Evans, Lewis; Grimes, Arthur; Wilkinson, Bryce (December 1996). "Economic Reform in New Zealand 1984–95: The Pursuit of Efficiency". Journal of Economic Literature. 34 (4): 1856–902. Retrieved 4 October 2012.
  90. "New Zealand rated most business-friendly". International Herald Tribune. 14 September 2005.
  91. "Page 10 – External diversification after 1966". Te Ara: The Encyclopedia of New Zealand. Retrieved 9 December 2014.
  92. "Page 2 – Early Māori economies". Te Ara: The Encyclopedia of New Zealand. Retrieved 9 December 2014.
  93. King, Michael (2003). The Penguin History of New Zealand. ISBN 978-0-14-301867-4.
  94. "First European economies". Te Ara: The Encyclopedia of New Zealand. Retrieved 9 December 2014.
  95. Warwick Robert Armstrong. "Vogel, Sir Julius, K.C.M.G". Te Ara: The Encyclopedia of New Zealand.
  96. "Page 5 – Boom and bust, 1870–1895". Te Ara: The Encyclopedia of New Zealand. Retrieved 11 December 2014.
  97. "Refrigeration, dairying and the Liberal boom". Te Ara: The Encyclopedia of New Zealand.
  98. Baten, Jörg (2016). A History of the Global Economy. From 1500 to the Present. Cambridge University Press. p. 287. ISBN 9781107507180.
  99. "Inter-war years and depression". Te Ara: The Encyclopedia of New Zealand.
  100. Liu, Shirley (13 October 2015). "The history of the New Zealand dollar | finder.com". finder US. Retrieved 11 August 2019.
  101. "New Zealand's trade history". New Zealand International Business Forum. Archived from the original on 13 May 2015. Retrieved 19 October 2014.
  102. "NAFTA signed". Te Ara: The Encyclopedia of New Zealand. Retrieved 8 December 2014.
  103. "Britain, New Zealand and the EU after 1940". Te Ara: The Encyclopedia of New Zealand. Retrieved 8 December 2014.
  104. "New Zealand's Export Markets year ended June 2000 (provisional)". Statistics New Zealand. June 2000. Archived from the original on 15 May 2010. Retrieved 15 June 2008.
  105. "Inflation". Reserve Bank of New Zealand. Archived from the original on 7 December 2014. Retrieved 8 December 2014.
  106. "In the shadow of Think Big". The New Zealand Herald. 31 January 2011.
  107. "Introduction". New Zealand Aluminium Smelter Limited. Retrieved 8 December 2014.
  108. Jack H. Nagel (1998). "Social Choice in a Pluralitarian Democracy: The Politics of Market Liberalization in New Zealand". British Journal of Political Science. 28 (2): 28#2, 223–67. doi:10.1017/s0007123498000155. JSTOR 194306.
  109. "20 years of a floating New Zealand dollar". Reserve Bank of New Zealand. Archived from the original on 25 October 2014. Retrieved 25 October 2014.
  110. Rusell 1996, p. 119.
  111. "Share Price Index, 1987–1998". Archived from the original on 25 May 2010.
  112. "Commercial Framework: Stock exchange, New Zealand Official Yearbook 2000". Statistics New Zealand. Archived from the original on 4 March 2016. Retrieved 8 December 2014.
  113. Kelsey, Jane (9 July 1999). "LIFE IN THE ECONOMIC TEST-TUBE: New Zealand "experiment" a colossal failure". Archived from the original on 2 November 2016. Retrieved 26 January 2012.
  114. OECD (28 January 1988). "LFS by sex and age – indicators". Stats.oecd.org. Retrieved 5 September 2018.
  115. "Reserve Bank statistics – Employment". Reserve Bank of New Zealand. Archived from the original on 22 January 2016. Retrieved 8 December 2014.
  116. "New Zealand as it might have been: From Ruthanasia to President Bolger". The New Zealand Herald. 12 January 2007. Retrieved 8 December 2014.
  117. Ministry for Culture and Heritage (29 February 2012). "The state steps in and out – housing in New Zealand". New Zealand history online. Retrieved 9 July 2012.
  118. Dobbin, Murray (15 August 2000). "New Zealand's Vaunted Privatization Push Devastated The Country, Rather Than Saving It". The National Post (Canada). Archived from the original on 24 March 2013.
  119. "Page 11 – Government and market liberalisation". Te Ara: The Encyclopedia of New Zealand.
  120. OECD. "1. Gross domestic product (GDP)". stats.oecd.org.
  121. "New Zealand Unemployment Data Set". OECD.
  122. "Survey ranks NZ in top six for economic freedom". The New Zealand Herald. 16 January 2008.
  123. Rudman, Brian (18 September 2009). "Government must plug those leaks". The New Zealand Herald.
  124. Weshah Razzak (February 2014). "New Zealand Labour Market Dynamics: Pre- and Post-global Financial Crisis" (PDF). New Zealand Treasury. Archived from the original (PDF) on 25 January 2015. Retrieved 13 December 2014.
  125. Joyce, Steven (3 February 2016). "Unemployment figure lowest in seven years". beehive.govt.nz. New Zealand Government.
  126. "Recent Economic Performance and Outlook" (PDF). New Zealand Treasury. 2014. Archived from the original (PDF) on 18 January 2015. Retrieved 26 December 2014.
  127. "The Treasury: Learning from managing the Crown Retail Deposit Guarantee Scheme". Controller and Auditor-General of New Zealand.
  128. "Causes of New Zealand Finance Company Collapses: A Brief Review". Social Science Research Network. SSRN 1906923. Missing or empty |url= (help)
  129. "Deposit guarantee scheme introduced". Reserve Bank of New Zealand. Archived from the original on 14 October 2008.
  130. "Deep freeze list – Finance industry failures". Interest.co.nz.
  131. "Fran O'Sullivan: Treasury must front up over role in SCF debacle". The New Zealand Herald. 18 October 2014.
  132. Krause, Nick; Mace, William (2 September 2011). "Nathans Finance directors jailed". Stuff.co.nz. Retrieved 22 January 2017.
  133. Fletcher, Hamish (31 August 2012). "Capital + Merchant directors jailed". The New Zealand Herald. Retrieved 22 January 2017.
  134. "Prison for Bridgecorp director". Stuff.co.nz. 17 April 2012. Retrieved 22 January 2017.
  135. "Remorseless director Rod Petricevic jailed". Stuff.co.nz. 26 April 2012. Retrieved 22 January 2017.
  136. "David Ross gets 10 years,10 months jail". The New Zealand Herald. 15 November 2013. Retrieved 22 January 2017.
  137. "NZ economy could hit the rocks – economists". Stuff. 25 August 2014.
  138. "New Zealand 2014's 'rock star' economy". Stuff. 7 January 2014.
  139. "Rock star economy or one hit wonder?". New Zealand Productivity Commission. 17 April 2014. Retrieved 26 December 2014.
  140. "NZ's 'rock star' status dims". The New Zealand Herald. 19 August 2014.
  141. Niko Kloeten (3 December 2014). "'Rock star' economy to play on". Stuff. Retrieved 21 January 2015.
  142. "How New Zealand's rich-poor divide killed its egalitarian paradise". The Guardian. 12 December 2014. Retrieved 21 January 2015.
  143. "Goods and services trade by country: Year ended June 2018 – corrected". Statistics New Zealand. Retrieved 10 February 2019.
  144. "Main trading partners, 2013". Statistics New Zealand. Retrieved 3 December 2014.
  145. "Export Milestones". Statistics New Zealand.
  146. "Trade Relationships and Agreements". Ministry of Foreign Affairs and Trade (New Zealand). 21 August 2014. Retrieved 10 December 2014.
  147. "Principal Trading Partners". New Zealand Treasury. Archived from the original on 23 October 2014. Retrieved 23 October 2014.
  148. "Trade surplus widens as dairy drives exports into China". The New Zealand Herald. 29 April 2014.
  149. "China overtakes Australia as NZ's biggest export market". National Business Review. 26 April 2013. Retrieved 13 December 2014.
  150. "The USA". New Zealand Trade and Enterprise.
  151. "United States of America". Ministry of Foreign Affairs and Trade (New Zealand).
  152. "Why bother with a US FTA?". The New Zealand Herald. 23 March 2010.
  153. "United Kingdom". New Zealand Trade and Enterprise.
  154. "Joint statement on EU-New Zealand Partnership Agreement". Ministry of Foreign Affairs and Trade (New Zealand).
  155. "Joint declaration by President Van Rompuy, President Barroso and Prime Minister Key on deepening the partnership between New Zealand and the European Union". The Hague. 25 March 2014.
  156. "Pacific Islands". New Zealand Trade and Enterprise.
  157. "Pacific". Ministry of Foreign Affairs and Trade (New Zealand). Archived from the original on 27 October 2014.
  158. "About the aid programme". Ministry of Foreign Affairs and Trade (New Zealand).
  159. "Who Owns NZ? Foreign Control Key Facts Updated". Scoop.co.nz. 7 January 2014.
  160. Bill Rosenberg. "Overseas Ownership of Land".
  161. "Electricity in New Zealand". NZ Electricity Authority/Te Mana Hiko. November 2010. Archived from the original on 2 January 2011. Retrieved 19 January 2011.

Further reading
This article is issued from Wikipedia. The text is licensed under Creative Commons - Attribution - Sharealike. Additional terms may apply for the media files.