New Zealand's economy is based on free market principles. New Zealand is dependent on the primary sector which accounts for 50% of all exports. Agricultural exports include dairy products, forest products, meat, fruit and vegetables, fish and wool. One third of real GDP is spent on the export of goods and services.

(Source: treasury.govt.nz)

Gross domestic product (GDP) 

 In September 2010, New Zealand's GDP increased by 1.4% over September 2009.

(Source: Statistics New Zealand – XL Sheet- Table 6.1)

 Gross domestic product (per capita)

In September 2010, GDP (per capita) increased by 0.29% compared to September 2009.

(Source: Statistics New Zealand – XL Sheet Table 6.1)

Gross national income (GNI)

New Zealand's GNI per capita in 2008 amounted to USD 27,260.

(Source: World Bank)

 Income tax rate in New Zealand

*The earners' levy rate (including GST) for the period 1 October 2010 to 31 March 2011 is 2.04% ($2.04 per $100)

**Employers are legally required to use the no notification rate when an employee does not fully complete the Tax code declaration (IR330).

(Source: Inland Revenue department, New Zealand)

Inflation rate

In New Zealand CPI is the official inflation indicator. Food and fuel prices have been rising, increasing the CPI to 2.3% in December 2010 over September 2010.

(Source: Statistics New Zealand – XL Sheet)

FDI Inflow

In March 2010, the stock of foreign direct investments in New Zealand amounted to NZD 92,487 million. The flow of foreign direct investments to New Zealand by different economic groups and countries in 2010 is given below:

(Source: Statistics New Zealand – XL Sheet)

Government’s   assets

The total assets at the end of June 2010 was NZD 223,355 million, an increase of 2.78% over the previous year. The assets include cash and cash equivalents, receivables, marketable securities, deposits and derivatives in gain, share investments, advances, property, plants and equipment.

(Source: treasury.govt.nz)

Consumer price index

The CPI in December 2010 was 1137 (2006=1000), an increase of 4% over December 2009.

 (Source: Statistics New Zealand – XL Sheet)

Money supply (currency in circulation)

There are three money supply measures in New Zealand – M1, M2 and M3.

M1 is the currency held by the public plus chequeable deposits, minus inter-institutional chequeable deposits, and minus central government deposits.

M2 consists of M1 plus small time deposits, savings deposits and non-institutional money-market funds.

M3 consists of currency held by the public plus NZD funding minus inter-M3 institutional claims and minus central government deposits.

(Source: Reserve Bank of New Zealand)

Exchange rate

(Source: Reserve Bank of New Zealand – XL Sheet)

Interest rates

Wholesale interest rates

In December 2010, the overnight interbank cash rate was 2.88%. The overnight interbank cash rate refers to the average interest rate of secured and unsecured overnight cash transactions that the market quote each other for the purpose of lending and borrowing short-term (overnight) money, without the need for reserve bank facilities.

(Source: Reserve Bank of New Zealand – XL Sheet)

Retail interest rates

In Dec. 2010, the floating first mortgage housing rate for new customers was 6.39%, compared to 5.90% in Jan 2010. The business base lending rate and six month term deposit rates also increased in Dec. 2010 compared to Jan. 2010.

(Source: Reserve Bank of New Zealand)

Government finances

Sovereign debt dynamics

Total revenue

New Zealand's core Crown revenue in 2009-10 was NZD 56.2 billion and total Crown revenue amounted to NZD 74.7 billion in 2009- 2010.

Tax revenue

Tax revenue accounts for the main share of New Zealand's revenue. For the fiscal year 2009-10, tax revenue amounted to NZD 50.7 billion.

(Source: treasury.govt.nz)

Government expenditure

Government expenditure in New Zealand exceeded revenues in 2010 resulting in a deficit of NZD 6.3 billion. There was a decrease of 2.88% in expenditure in 2009. Expenditure on social security and welfarewas NZD 24.2 billion, an increase of 3.86% from 2009. The government healthcare expenditure amounted to NZD 12.7 billion and education expenditure amounted to NZD 12.4 billion.

(Source: treasury.govt.nz - Pdf)

(Source: treasury.govt.nz - Pdf)

Balance of payments

In September 2010, the current account deficit was 3.1% of GDP, compared to 3.2% in September 2009.

(Source: Statistics New Zealand)

 The unemployment rate was 6.8% in December 2010. Annually, there was a decrease of 0.2 percentage points.

In December 2010, the labour force participation rate was 67.9%, an annual decrease of 0.2 percentage points.

(Source: Statistics New Zealand)  

(Source: Statistics New Zealand – XL Sheet)

Employment in agriculture

In 2009, approximately 6.46% of the total employed population were employed in the agricultural sector.

Employment in industries

The industrial sector employed approximately 21.61% of the total employed population in 2009.

Employment in services

In 2009, the service sector was the largest employer in New Zealand employing 71.70% of the total employed population.

(Source: Statistics New Zealand)

Average and median weekly income

In June 2010, the average weekly income in New Zealand was NZD 687, an increase of 1.03% while the median income declined by 1.67% to NZD 529, compared to June 2009.

(Source: Statistics New Zealand)

New Zealand is a constitutional monarchy. The constitutional authority in New Zealand functions at three different levels - parliament, the executive and the judiciary. New Zealand has no written constitution. The functions of government are set out under numerous Acts of Parliament, documents issued under the authority of the Queen, decisions of the court, relevant English and United Kingdom Acts of Parliament and unwritten constitutional conventions.

(Source: parliament.nz)

Parliament

The Parliament consists of the Sovereign and the House of Representatives. The members of Parliament are elected by people’s representatives for a term of three years. The power of dissolving Parliament and giving the Royal assent to bills passed in the House of Representatives rests with the Sovereign. The Parliament has only one chamber is unicameral.

Executive

Head of state

The Sovereign, Queen Elizabeth II of New Zealand is the head of state. The governor-general represents the Queen in New Zealand. The governor-general chairs the executive council and formally signs legislation into law after being passed by Parliament.

Government

Government is formed by the ministers of the crown or the cabinet who are the elected members of parliament. The prime minister is the leader of the governing party or coalition of parties holding the majority of seats in parliament and leads the cabinet.

The main political parties active in New Zealand are:

• National Party

• Labour Party

• Green Party

• ACT Party

• Maori Party

• Progressive Party

• United Future Party

Regulatory environment

New Zealand enjoys a high degree of economic freedom in the Asia–Pacific region. New Zealand has experienced steady economic growth as a result of openness to global trade and investment. New Zealand withstood the recent global financial crisis due to the stable financial structure and regulated and controlled lending.

New Zealand supports the foreign and domestically owned business activities and to start a business in new Zealand only takes one day with few procedures in comparison to the world average of 35 days.

Business and economic freedom

New Zealand scored 82.1 on economic freedom index ranking it 4^th freest economy in 2010.

(Source: heritage.org)

Corruption perception

New Zealand ranks 1^st on the World’s Corruption Perception Index (CPI). CPI measures the perceived level of public-sector corruption in 180 countries and territories around the world.

(Source: transparency.org)

Freedom of information

New Zealand ranks 8^th on the World press freedom index 2010 conducted by rsf.org.

New Zealand's press media is free from political parties and government involvement.

New Zealand Herald, Waikato Times, the Dominion Post, the Press, Otago Daily Times are key newspapers in New Zealand; while Television New Zealand, MediaWorks New Zealand, Sky Network Television and Freeview are some of the TV broadcasters.

(Source: rsf.org)

Judicial system

The judiciary in New Zealand is free from any political interference and has four levels

• The Supreme Court

• The Court of Appeal

• The High Court

• The District Court

The Supreme Court is headed by the Chief Justice of New Zealand and is appointed on the advice of the prime minister. It is the final court of appeal in New Zealand. Appeals from the High Court are heard by the Court of Appeal. Criminal offences and civil matters and appeals from district courts are heard by the High Court.

(Source: parliament.nz, justice.govt.nz)

The population of New Zealand was 4.37 million by the end of 2010, an increase of approximately 1.21% over 2009.

P= Preliminary Estimates

(Source: Statistics New Zealand – XL Sheet)

The representation of gender in New Zealand is almost equal. The total male population of New Zealand in 2010 was 2.14 million while the female population mae up 2.22 million accounting for approximately 50.9% of the total population.

(Source: Statistics New Zealand – XL Sheet)

New Zealand's population indicates that the 15-39 year age group made up themaximum share of 34.4% of the total population followed by the 40-64 year age group. Approximately 20.5% of the total population falls in the under 15 year age group and approximately 12.9% of the population are aged  65 and above.

(Source: Statistics New Zealand – XL Sheet)

New Zealand has six ethnic groups which are mainly European, Māori, Pacific peoples, Asian, MELAA and Other.

English is most the common language spoken in New Zealand. Other than English, Māori, Samoan, French, Yue (Cantonese) and German languages are also spoken.

 (Source: Statistics New Zealand)

By the end of 2010, the median age for men was 35.5 years and 37.7 years for women.

The average life expectancy (at birth) in New Zealand for men is 78.4 years and 82.4 years for women.

(Source: Statistics New Zealand - Pdf)

In 2010, the net migration figure in New Zealand was 10,500 compared to 21,300 in 2009

(Source: Statistics New Zealand - Pdf)

In December 2010

•  63,900 live births were registered in New Zealand
• The birth rate was 2.1 births per woman
•  28,440 deaths were registered compared to 28,960 deaths in 2009
• The infant mortality rate (infant deaths per 1,000 live births) was 5.1 compared to 8.3 per 1,000 in 1990

(Source: Statistics New Zealand)

New Zealand ranked 3^rd on the Human Development index 2010 conducted by the United Nations. The HDI provides a composite measure of three dimensions of human development: living a long and healthy life (measured by life expectancy), being educated (measured by adult literacy and gross enrolment in education) and having a decent standard of living (measured by purchasing power parity, PPP, income). 

(Source: UNDP)

Education

In New Zealand, 12 years of formal education is compulsory for every citizen aged from 6 to 16. There are three levels of education:

·         Primary education

·         Secondary education

·         Tertiary education

Primary school education forms the first level of compulsory education. Children aged 6 are enrolled for primary education in New Zealand.

The second level of compulsory education in New Zealand is secondary school. Students aged 9 to 13 years go for secondary education after the completion of primary education. The secondary school offers three levels of the National Certificate of Educational Achievement (NCEA) qualification.

The post school education consists of industry training, adult and community education, foundation studies and study at tertiary institutions like universities, polytechnics and private training establishments.

(Source: Statistics New Zealand)

Net primary or secondary school enrolment ratio means the number of children enrolled in primary school who belong to the age group that officially corresponds to primary or secondary schooling, divided by the total population of the same age group.

(Source: unicef.org)

The various means of public transit in New Zealand include buses, trams, trains and cable cars.

New Zealand's transport agency administers the state highway network in the country. The total length of state highways, roads and bridges are:

 (Source: nzta.govt.nz)

New Zealand Railways Corporation (NZRC) manages the rail transport system. It looks after 4,000 kilometres of railway track, bridges and tunnels.

(Source: NZRC)

Ports

There are approximately 25 ports in New Zealand. There are 13 commercial ports in New Zealand namely, Port of Whangarei, Ports of Auckland, CentrePort Wellington, Port of Tauranga, Eastland Port, The Port of Napier, Port Taranaki, Port Nelson, Port Marlborough New Zealand Ltd, Lyttelton Port, PrimePort Timaru, Port Otago and South Port.

(Source: world port source, business.newzealand)

Airports

New Zealand has a comprehensive network of international and domestic airports.

Auckland Airport serves the largest number of international arrivals and departures. Airports in Wellington, Christchurch, Dunedin, Hamilton, Palmerston North and Queenstown also serve as international airports.

(Source: Air charter world)

Telecommunications

In June 2009,

•   The number of internet subscribers grew to 220,000

•   The total number of broadband subscribers in New Zealand exceeded 1 million

•   One third of all internet subscribers used broadband connection

 (Source: Statistics New Zealand)

In 2010, 3,600,000 out of 4,213,418 people, i.e. 85.4% of population used the internet.

(Source: Internet World Stats)