New Zealand Economy 2008

Economy - overview:
Over the past 20 years the government has transformed New Zealand from an agrarian economy dependent on concessionary British market access to a more industrialized, free market economy that can compete globally. This dynamic growth has boosted real incomes - but left behind many at the bottom of the ladder - and broadened and deepened the technological capabilities of the industrial sector. Per capita income has risen for eight consecutive years and reached $27,800 in 2007 in purchasing power parity terms. Consumer and government spending have driven growth in recent years, and exports picked up in 2006 after struggling for several years. Exports were equal to about 22% of GDP in 2007, down from 33% of GDP in 2001. Thus far the economy has been resilient, and the Labor Government promises that expenditures on health, education, and pensions will increase proportionately to output. Inflationary pressures have built in recent years and the central bank raised its key rate 13 times since January 2004 to finish 2007 at 8.25%. A large balance of payments deficit poses another challenge in managing the economy.

GDP (purchasing power parity):
$112.6 billion (2007 est.)

GDP (official exchange rate):
$104 billion (2007 est.)

GDP - real growth rate:
3% (2007 est.)

GDP - per capita (PPP):
$27,300 (2007 est.)

GDP - composition by sector:
agriculture: 4.3%
industry: 26.2%
services: 69.6% (2007 est.)

Labor force:
2.23 million (2007 est.)

Labor force - by occupation:
agriculture: 7%
industry: 19%
services: 74% (2006 est.)

Unemployment rate:
3.5% (2007 est.)

Population below poverty line:
NA%

Household income or consumption by percentage share:
lowest 10%: NA
highest 10%: NA (1991 est.)

Distribution of family income - Gini index:
36.2 (1997)

Inflation rate (consumer prices):
2.5% (2007 est.)

Investment (gross fixed):
22.2% of GDP (2007 est.)

Budget:
revenues: $54.36 billion
expenditures: $48.51 billion (2007 est.)

Public debt:
18.3% of GDP (2007 est.)

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

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

Industrial production growth rate:
1.8% (2007 est.)

Electricity - production:
42.06 billion kWh (2006 est.)

Electricity - consumption:
37.39 billion kWh (2006 est.)

Electricity - exports:
0 kWh (2005)

Electricity - imports:
0 kWh (2005)

Oil - production:
25,880 bbl/day (2006 est.)

Oil - consumption:
156,000 bbl/day (2006 est.)

Oil - exports:
15,720 bbl/day (2004)

Oil - imports:
140,900 bbl/day (2004)

Oil - proved reserves:
55.5 million bbl (1 January 2006 est.)

natural gas - production:
3.9 billion cu m (2006 est.)

natural gas - consumption:
3.7 billion cu m (2006 est.)

natural gas - exports:
0 cu m (2005 est.)

natural gas - imports:
0 cu m (2005)

natural gas - proved reserves:
29.67 billion cu m (1 January 2006 est.)

Current account balance:
-$9.973 billion (2007 est.)

Exports:
$28.12 billion (2007 est.)

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

Exports - partners:
Australia 20.5%, US 13.1%, Japan 10.3%, China 5.4%, UK 4.9% (2006)

Imports:
$29.83 billion (2007 est.)

Imports - partners:
Australia 20.5%, China 12.3%, US 11.8%, Japan 9.2%, Germany 4.4%, Singapore 4.4% (2006)

Economic aid - donor:
ODA, $276 million (2006 est.)

Reserves of foreign exchange and gold:
$18.99 billion (31 December 2007 est.)

Debt - external:
$50.02 billion (31 December 2007 est.)

Stock of direct foreign investment - at home:
$63.12 billion (2006 est.)

Stock of direct foreign investment - abroad:
$NA

Market value of publicly traded shares:
$40.62 billion (2005)

Currency (code):
New Zealand dollar (NZD)

Exchange rates:
New Zealand dollars per US dollar - 1.3811 (2007), 1.5408 (2006), 1.4203 (2005), 1.5087 (2004), 1.7221 (2003)