New Zealand Economy

Economy

Over the past 20 years the governmenthastransformed New Zealand from an agrarianeconomydependent on concessionary British marketaccessto a more industrialized, free marketeconomy thatcan compete globally. This dynamicgrowth hasboosted real incomes (but left behindmany at thebottom of the ladder), broadened anddeepened thetechnological capabilities of theindustrialsector, and contained inflationarypressures. Percapita income has risen for sixconsecutive yearsand is now more than $23,000 inpurchasing powerparity terms. New Zealand isheavily dependent ontrade - particularly inagricultural products - todrive growth. Exportsare equal to about 20% ofGDP. Thus far the economyhas been resilient, andthe Labor Governmentpromises that expenditures onhealth, education,and pensions will increaseproportionately to output.