Euromoney Country Risk

EUROMONEY COUNTRY RISK

Read the latest analysis on sovereign, geo-political and structural risk

 
Get up to date country risk ratings in 186 countries

Member login



Lost your password?

Euromoney Country Risk

Euromoney Country Risk
List of countries.

New Zealand New Zealand

Overview Change score Analyses Experts
 
Sponsored section
New Zealand – Quick View
ECR score83.62 (Mar 2011)
ECR rank14 (Mar 2011)
Economic
GDP 2010USD 96,330.23 million
GNI per capita 2008USD 27,260
FDI inflow 2010USD 66,391.83 million
Inflation 20102.3%
Central bank assets 2010USD 156,875.19 million
Unemployment rate 20106.8%
Government deficit 2010USD 4.54 billion
Tax revenue 2010USD 35.61 billion
Political
Government typeConstitutional Monarchy
Recent economic crisisNA
Economic freedom score4th
Freedom of information score8th
Corruption perception index1st
Structural
Live Births 201063,900
Birth rate2.1 births per woman
Deaths 201028,440
Population balanceUnder 15 years – 20.5%
Population balance15-39 years – 34.3%
Population balance40-64 years – 32.2%
Population balance65+ years – 13.0%
Life expectancy yearsMale – 78.4
Life expectancy yearsFemale – 82.4
Infant Mortality rate (per '000 live births) 20105.1
Internet access 201085.4%

[Top] Economic Overview

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 ZealandXL 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 ZealandXL 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

Income Tax rates and taxable bands

Taxable income

Income tax rate for every
$1 of taxable income
(excl. ACC earners' levy)

PAYE rate for every
$1 of taxable income
(incl. ACC earners' levy*)

up to $14,000

10.5 cents

12.54 cents

from $14,001 to $48,000

17.5 cents

19.54 cents

from $48,001 to $70,000

30 cents

32.04 cents

$70,001 and over

33 cents

35.04 cents

No notification**

45 cents

47.04 cents

*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 ZealandXL 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:

Foreign investment abroad (NZD million)

 

Jun-09

Sep-09

Dec-09

Mar-10

Jun-10

Sep-10

Direct investment abroad

23,666

22,890

20,419

21,430

21,848

23,503

Portfolio investment

42,666

45,808

48,918

51,357

50,119

51,803

Other investment

14,580

16,276

20,212

16,866

17,922

21,430

Financial derivatives

18,378

17,729

13,893

14,569

15,502

17,180

Reserve assets

20,267

19,995

21,591

23,424

24,672

23,114

Total foreign investment in New Zealand

119556

122698

125034

127646

130063

137,029

Foreign investment in New Zealand (NZD million)

 

Jun-09

Sep-09

Dec-09

Mar-10

Jun-10

Sep-10

Direct investment

90,062

89,136

89,788

92,487

91,760

91,453

Portfolio investment

85,348

87,547

91,598

93,205

95,486

97,363

Other investment

85,532

87,511

88,216

87,456

89,534

90,624

Financial derivatives

23,840

23,533

16,174

15,749

16,415

20,138

(Source: Statistics New ZealandXL 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)

[Top] Financial Indicators & Government Financial

Consumer price index

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

Consumer Prices Index (2006=1000)

2009

Mar

1075

Jun

1081

Sep

1095

Dec

1093

2010

Mar

1097

Jun

1099

Sep

1111

Dec

1137

 (Source: Statistics New ZealandXL 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.

Money Supply (NZD million) 2010

Year

Notes & coin held by the public

M1

M2

M3

Jan

3,503

23,159

71,655

205,281

Feb

3,477

23,228

73,653

205,430

Mar

3,521

24,177

73,367

206,118

Apr

3,452

24,268

73,128

207,692

May

3,402

23,553

73,496

206,568

Jun

3,418

22,971

71,233

204,370

Jul

3,449

22,869

69,445

206,072

Aug

3,415

22,357

68,179

206,042

Sep

3,486

23,506

69,199

208,382

Oct

3,524

23,326

70,723

210,097

Nov

3,514

23,642

70,226

210,747

Dec

3,798

25,363

71,318

213,903

(Source: Reserve Bank of New Zealand)

Exchange rate

Exchange rates (NZD to other currencies) - 2010

Average for period ended

USD

GBP

AUD

JPY

Euro

Jan

0.7277

0.4500

0.7959

66.38

0.5092

Feb

0.6974

0.4455

0.7868

62.93

0.5094

Mar

0.7032

0.4670

0.7712

63.66

0.5178

Apr

0.7124

0.4644

0.7685

66.52

0.5304

May

0.6992

0.4761

0.8019

64.36

0.5557

Jun

0.6928

0.4696

0.8105

62.96

0.5665

Jul

0.7111

0.4657

0.8134

62.31

0.5572

Aug

0.7154

0.4566

0.7944

61.17

0.5541

Sep

0.7259

0.4667

0.7766

61.28

0.5566

Oct

0.7501

0.4734

0.7647

61.48

0.5404

Nov

0.7727

0.4836

0.7805

63.69

0.5646

Dec

0.7504

0.4807

0.7573

62.57

0.5679

(Source: Reserve Bank of New ZealandXL 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 ZealandXL 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.

Retail Interest rates (% per annum) - 2010

 

Average for period ended

Floating first mortgage new customer housing rate

Business base lending rate

Six month term deposit rate

Jan

5.90

10.05

4.38

Feb

5.90

10.00

4.38

Mar

5.90

10.01

4.62

Apr

5.91

10.01

4.39

May

5.91

10.02

4.60

Jun

6.14

10.03

4.61

Jul

6.14

10.11

4.55

Aug

6.39

10.36

4.71

Sep

6.39

10.23

4.71

Oct

6.39

10.34

4.75

Nov

6.39

10.35

4.67

Dec

6.39

10.32

4.63

(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.

New Zealand Balance of Payments (NZD million)

2009

2010

 

Jun

Sep

Dec

Mar

Jun

Sep

Balance on goods

1,749

-349

-243

1484

2364

-324

Balance on services

-271

-562

71

874

-345

-805

Balance on income

-1,488

-738

-3,201

-2,346

-2,885

-2,294

Balance on current transfers

272

101

41

167

-121

1,653

Current account balance

262

-1,547

-3,332

159

-987

-1,770

 

 

 

 

 

 

 

 

 

 

 





(Source: Statistics New Zealand)

[Top] Labour Force and Employment Overview

 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)  

 

Labour Force Data 2009-2010 ('000)

Time period

Employed

Unemployed

Total

Not in labour force

Labour force participation rate (%)

Mar-09

2,177

117

2,295

1,060

68.4

Jun-09

2,172

138

2,309

1,065

68.4

Sep-09

2,154

150

2,304

1,082

68.0

Dec-09

2,154

164

2,318

1,086

68.1

Mar-10

2,175

140

2,315

1,088

68.0

Jun-10

2,171

160

2,331

1,094

68.1

Sep-10

2,193

150

2,344

1,089

68.3

Dec-10

2,182

158

2,340

1,107

67.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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)


[Top] Political Stability

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 4th freest economy in 2010.


 

(Source: heritage.org)

Corruption perception

New Zealand ranks 1st 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 8th 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)

 

[Top] Demographic Overview

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 ZealandXL 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 ZealandXL 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 ZealandXL 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 3rd 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)

[Top] Soft Infrastructure

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)

Enrolment ratio for the period 2003-2008

 

Male

Female

Average

Net Primary school enrolment ratio

99

99

99

Net Secondary school enrolment ratio

91

93

92

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)

[Top] Hard Infrastructure

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:

Length of New Zealand roads in Km (2009)

State highways

10,908.6

Local Roads (urban)

17,509.9

Local Roads (Rural)

65,491.6

Bridges in New Zealand (2009)

Number

Length (m)

4,027

142,190

 (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)

 

Euromoney country risk banner
 
All material subject to strictly enforced copyright laws.
© 2017 Euromoney Institutional Investor PLC.