View source for Economy of New Zealand

{{Short description|none}}
{{Use New Zealand English|date= January 2013}}
{{Use dmy dates|date=April 2025}}
{{Infobox economy
| country = New Zealand
| image = Auckland_skyline_-_May_2024_(2).jpg
| image_size = 320px
| caption = [[Auckland CBD|Auckland's central business district]]
| currency = [[New Zealand dollar]] (NZD, NZ$)
| year = 1 July – 30 June<ref>{{cite web |url= http://www.treasury.govt.nz/government/financialstatements/yearend |access-date= 5 March 2017|title= Year End Financial Statements |publisher=NZ Treasury}}</ref>
| organs = [[Asia-Pacific Economic Cooperation|APEC]], [[Comprehensive and Progressive Agreement for Trans-Pacific Partnership|CPTPP]], [[Regional Comprehensive Economic Partnership|RCEP]], [[World Trade Organization|WTO]] and [[Organisation for Economic Co-operation and Development|OECD]]
| group = {{plainlist|
* [[Developed country|Developed/Advanced]]<ref>{{cite web |url=https://www.imf.org/external/pubs/ft/weo/2019/01/weodata/weoselco.aspx?g=110&sg=All+countries+%2f+Advanced+economies |title=World Economic Outlook Database, April 2019 |publisher=[[International Monetary Fund]] |website=IMF.org |access-date=29 September 2019}}</ref>
* [[World Bank high-income economy|High-income economy]]<ref>{{cite web |url=https://datahelpdesk.worldbank.org/knowledgebase/articles/906519-world-bank-country-and-lending-groups |title=World Bank Country and Lending Groups |publisher=[[World Bank]] |website=datahelpdesk.worldbank.org |access-date=29 September 2019}}</ref>
}}
| population = {{NZ population data 2018|New Zealand|y}} ({{NZ population data 2018|New Zealand||y}} estimate){{NZ population data 2018|New Zealand|||y}}
| gdp = {{plainlist|
* {{Decrease}} $248.67 billion ([[GDP (nominal)|nominal]]; {{abbr|2025|2025 forecast}})<ref name="IMF DataMapper">{{cite web |url=https://www.imf.org/external/datamapper/profile/NZL |title=IMF DataMapper: New Zealand|website=[[International Monetary Fund]] |date=2025 |access-date=31 May 2025}}</ref>
* {{increase}} $298.93 billion ([[Purchasing power parity|PPP]]; {{abbr|2025|2025}})<ref name="IMF DataMapper"/> 
}}
| gdp rank = {{plainlist|
* [[List of countries by GDP (nominal)|52th (nominal; 2025)]]
* [[List of countries by GDP (PPP)|67th (PPP; 2025)]]
}}
| growth = {{plainlist|   
* {{Increase}} 1.8%&nbsp;(2023)<ref name="IMF DataMapper" />
* {{Decrease}} 0.5%&nbsp;(2024)<ref name="IMF DataMapper" />
* {{Increase}} 1.4%&nbsp;({{abbr|2025|2025 forecast}})<ref name="IMF DataMapper" />
* {{Increase}} 2.7%&nbsp;({{abbr|2026f|2025 forecast}})<ref name="IMF DataMapper" />
}}
| per capita = {{plainlist|
* {{Decrease}} $46,130 (nominal; {{abbr|2025|2025 forecast}})<ref name="IMF DataMapper"/>
* {{increase}} $55,450 (PPP; {{abbr|2025|2025 forecast}})<ref name="IMF DataMapper"/> 
}}
| per capita rank = {{plainlist|
* [[List of countries by GDP per capita (nominal)|23rd (nominal; 2025)]]
* [[List of countries by GDP per capita (PPP)|36th (PPP; 2025)]]
}}
| sectors = {{plainlist|
* Agriculture: 7%
* Industry: 19%
* Services: 65% 
* (2018)<ref>{{cite web |title=Which industries contributed to New Zealand's GDP? {{!}} Stats NZWhich industries contributed to New Zealand's GDP? (2018) |url=https://www.stats.govt.nz/tools/which-industries-contributed-to-new-zealands-gdp/ |website=www.stats.govt.nz |publisher=Stats NZ |access-date=28 October 2024}}</ref>
}}
| gini = 33.9 {{color|darkorange|medium}} (2019)<ref>{{cite web|title=Household income and housing-cost statistics: Year ended June 2019
|url=https://www.stats.govt.nz/assets/Uploads/Household-income-and-housing-cost-statistics/Download-data-corrected/household-income-and-housing-cost-statistics-year-ended-june-2019-corrected-21-feb-2020.xlsx|at=Table 9|publisher=Statistics New Zealand|access-date=24 February 2020|format=Spreadsheet|archive-url=https://web.archive.org/web/20200224040109/https://www.stats.govt.nz/assets/Uploads/Household-income-and-housing-cost-statistics/Download-data-corrected/household-income-and-housing-cost-statistics-year-ended-june-2019-corrected-21-feb-2020.xlsx|archive-date=24 February 2020}}</ref>
| hdi = {{plainlist|
* {{increase}} 0.939 {{color|darkgreen|very high}} (2022)<ref name="UNHDR">{{cite web|url=https://hdr.undp.org/system/files/documents/global-report-document/hdr2023-24reporten.pdf|title=Human Development Report 2023/24|language=en|publisher=[[United Nations Development Programme]]|date=13 March 2024|page=288|access-date=13 March 2024}}</ref> ([[List of countries by Human Development Index|16th]])
* {{decrease}} 0.856 {{color|darkgreen|very high}} [[List of countries by inequality-adjusted HDI|IHDI (17th)]] (2022)<ref name="UNHDR" />
}}
| inflation = 2.2% (September 2024 Q)<ref name="Inflation">{{cite web |url= https://www.rbnz.govt.nz/monetary-policy/about-monetary-policy/inflation |title= Inflation|publisher=Reserve Bank of New Zealand |date= 17 July 2024}}</ref>
| poverty = 11.0% (relative, 2014)<ref>{{cite web |url= https://figure.nz/chart/9ABolIv3mij25oXj-2wJ2bxvdAm9XVezt|title= Relative poverty rate at 50% of the median household income in OECD countries}}</ref>
| labor = {{plainlist|
* {{increase}} 2.820 million (Q2 2022)<ref name="Q2 2022 Stats">{{cite web |title=Labour market statistics: June 2022 quarter {{!}} Stats NZ |url=https://www.stats.govt.nz/information-releases/labour-market-statistics-june-2022-quarter/ |website=www.stats.govt.nz |publisher=Stats NZ |access-date=3 August 2022}}</ref>
* {{decrease}} 68.5% employment rate (Q2 2022)<ref name="Q2 2022 Stats"/>
* {{decrease}} 70.8% labour force participation rate (Q2 2022)<ref name="Q2 2022 Stats" />
}}
| occupations = {{plainlist|
* [[Primary sector of the economy|Agriculture]]: 6.6%
* [[Secondary sector of the economy|Industry]]: 20.7%
* [[Tertiary sector of the economy|Services]]: 72.7%
* (2017 est.)<ref name="CIAWFNZ"/>
}}
| average gross salary = NZ$6,668 / $3,934 monthly<ref>{{cite web | url=https://www.oecd-ilibrary.org/sites/7dab7e4b-en/index.html?itemId=/content/component/7dab7e4b-en | title=Home | date=9 April 2025 }}</ref> (2024)
| average net salary = NZ$5,283 / $3,116 monthly<ref>[https://www.oecd.org/content/dam/oecd/en/publications/reports/2025/04/taxing-wages-2025_20d1a01d/b3a95829-en.pdf#page176 Taxing Wages 2024: Tax and Gender through the Lens of the Second Earner | READ online.]</ref><ref>[https://www.oecd.org/en/publications/taxing-wages-2025_b3a95829-en.html Taxing Wages 2024: Tax and Gender through the Lens of the Second Earner | OECD iLibrary.]</ref> (2024)
| unemployment = {{plainlist|
* {{increaseNegative}} 3.3% (Q2 2022)<ref name="Q2 2022 Stats"/>
* {{increaseNegative}} 96 thousand (Q2 2022)<ref name="Q2 2022 Stats"/>
}}
| industries = [[Food processing]], [[Agriculture in New Zealand|Agriculture]], [[Forestry in New Zealand|Forestry]], [[Sheep farming in New Zealand|Wool]], [[Tourism in New Zealand|Tourism]], [[Finance|Financial Services]]
| exports = $72.8 billion (FY 2022/23)<ref name="OMT2306">{{cite web |title=Overseas merchandise trade: June 2023 |url=https://www.stats.govt.nz/information-releases/overseas-merchandise-trade-june-2023/ |website=Stats NZ |access-date=27 October 2023}}</ref>
| export-goods = Dairy products, meat, logs and wood products, fruit, wine, machinery and equipment, fish and seafood
| export-partners = {{plainlist|
* {{flag| China}} 28.2%
* {{flag| Australia}} 12.6%
* {{flag| United States}} 11.3%
* {{flag| European Union}} 6.4%
* {{flag| Japan}} 5.7% 
* (FY 2022/3)<ref name="OMT2306" />
}}
| imports = $88.8 billion (FY 2022/23)<ref name="OMT2306" />
| import-goods = Petroleum, vehicles, machinery and equipment, electronics, textiles, plastics
| import-partners = {{plainlist|
* {{flag| China}} 21.6%
* {{flag| European Union}} 14.7%
* {{flag| Australia}} 10.8%
* {{flag| United States}} 9.4%
* {{flag| South Korea}} 7.1% 
* (FY 2022/23)<ref name="OMT2306" />
}}
| current account = {{decrease}} −$5.471 billion (2017 est.)<ref name="CIAWFNZ"/>
| FDI = {{plainlist|
* {{increase}} $84.19 billion (31 December 2017 est.)<ref name="CIAWFNZ"/>
* Abroad: {{decrease}} $16.74 billion (31 December 2016 est.)<ref name="CIAWFNZ"/>
}}
| gross external debt = NZ$156.181 billion (53% of GDP) (December 2018)<ref>{{cite web|url= https://www.rbnz.govt.nz/statistics/m7 |title= Balance of Payments and International Investment Position – M7 |date= 19 December 2018 |access-date= 23 February 2019 |work= Statistics New Zealand |publisher=Reserve Bank of New Zealand}}</ref> NZ$86.342 billion (30.5% of GDP) (Feb 2018)<ref name="debt investment">{{cite web |url= https://treasury.govt.nz/publications/media-statement/financial-statements-government-new-zealand-eight-months-ended-28-february-2018 | title= Financial Statements of the Government of New Zealand for the eight months ended 28 February 2018 | work= The Treasury New Zealand | date= 8 April 2018 | publisher=New Zealand Treasury | access-date= 17 February 2019}}</ref>
| debt = {{decreasePositive}} 31.7% of GDP (2017 est.)<ref name="CIAWFNZ">{{cite web |url=https://www.cia.gov/the-world-factbook/countries/new-zealand/ |title=The World Factbook |publisher=[[Central Intelligence Agency]] |website=CIA.gov |access-date=23 October 2019}}</ref>
| revenue = 74.11 billion (2017 est.)<ref name="CIAWFNZ"/>
| expenses = 70.97 billion (2017 est.)<ref name="CIAWFNZ"/>
| balance = +1.6% (of GDP) (2017 est.)<ref name="CIAWFNZ"/>
| reserves = {{decrease}} $10.02 billion (June 2023 est.)<ref>{{Cite web |title=New Zealand Foreign Exchange Reserves, 2005–2023 {{!}} CEIC Data |url=https://www.ceicdata.com/en/indicator/new-zealand/foreign-exchange-reserves#:~:text=in%20Jun%202023?-,New%20Zealand%20Foreign%20Exchange%20Reserves%20was%20measured%20at%2010.0%20USD,table%20below%20for%20more%20data. |access-date=8 August 2023 |website=www.ceicdata.com}}</ref>
| credit = {{ubli|
| [[Standard & Poor's]]:<ref>{{cite web | title = Sovereigns rating list | publisher=Standard & Poor's | url= http://www.standardandpoors.com/ratings/sovereigns/ratings-list/en/eu/?subSectorCode=39 | access-date= 26 May 2011}}</ref>{{ubli
 | AAA (Domestic)
 | AA+ (Foreign)
 | AAA (T&C assessment)
 | Outlook: Negative<ref name=guardian>{{cite news | title= How Fitch, Moody's and S&P rate each country's credit rating | date= 15 April 2011 | first1= Simon | last1= Rogers | first2= Ami | last2= Sedghi | work=[[The Guardian]] | url= https://www.theguardian.com/news/datablog/2010/apr/30/credit-ratings-country-fitch-moodys-standard | access-date= 31 May 2011 | location= London}}</ref>
 }}
| [[Moody's]]:<ref name=guardian>{{cite news | title= How Fitch, Moody's and S&P rate each country's credit rating | date= 15 April 2011 | first1= Simon | last1= Rogers | first2= Ami | last2= Sedghi | work=[[The Guardian]] | url= https://www.theguardian.com/news/datablog/2010/apr/30/credit-ratings-country-fitch-moodys-standard | access-date= 31 May 2011 | location= London}}</ref>{{ubli
 | AAA
 | Outlook: Stable
 }}
| [[Fitch Group|Fitch]]:<ref name=guardian/>{{ubli
 | AA+
 | Outlook: Negative
 }}
}}
| aid = ''As donor'': $99.7&nbsp;million (FY99/00)
}}
'''New Zealand''' has a [[Developed country|highly developed]] [[free-market economy]].<ref>{{cite book |last1=Hall |first1=Peter A.|last2 =Soskice |first2=David|author-link2=David Soskice |date=2001 |title=Varieties of Capitalism: The Institutional Foundations of Comparative Advantage |url=https://books.google.com/books?id=EU02HzYJeFsC&q=canada+a+market+economy |publisher=[[Oxford University Press]] |page=570 |isbn=978-0191647703}}</ref> {{as of|2025}}, New Zealand's nominal GDP was US$248 billion.<ref>{{Cite web|url=https://www.stats.govt.nz/indicators/gross-domestic-product-gdp/|title=Gross domestic product (GDP)|date=20 March 2025|access-date=13 June 2025|website=www.stats.govt.nz|publisher=Stats NZ}}</ref> In the 2025 IMF rankings New Zealand was the [[List of countries by GDP (nominal)|52nd]]-largest national economy in the world when measured by [[nominal gross domestic product]] (GDP) and the [[List of countries by GDP (PPP)|63rd]]-largest in the world when measured by [[purchasing power parity]] (PPP). New Zealand has one of the most [[globalised]] economies and depends greatly on [[List of the largest trading partners of New Zealand|international trade]], mainly with [[China]], [[Australia]], the [[European Union]], the [[United Kingdom]], the [[United States]], [[Japan]] and [[South Korea|Korea]]. New Zealand's 1983 [[Closer Economic Relations]] agreement with Australia means that the economy aligns closely with [[Economy of Australia|that of Australia]]. Among [[OECD]] nations, New Zealand has a highly efficient and strong [[Welfare in New Zealand|social security system]]; social expenditure stood at [[Welfare state#Effects|roughly 19.4% of GDP]].<ref name="Kenworthy">{{Cite journal |jstor = 3005973|title = Do Social-Welfare Policies Reduce Poverty? A Cross-National Assessment|journal = Social Forces|volume = 77|issue = 3|pages = 1119–1139|last1 = Kenworthy|first1 = Lane|year = 1999|doi = 10.2307/3005973|url = http://www.lisdatacenter.org/wps/liswps/188.pdf|archive-url = https://web.archive.org/web/20130810134045/http://www.lisdatacenter.org/wps/liswps/188.pdf|archive-date = 10 August 2013|url-status = live}}</ref><ref name="Bradley et al.">{{Cite journal |jstor = 3088901|title = Determinants of Relative Poverty in Advanced Capitalist Democracies|journal = American Sociological Review|volume = 68|issue = 1|pages = 22–51|last1 = Moller|first1 = Stephanie|last2 = Huber|first2 = Evelyne|last3 = Stephens|first3 = John D.|last4 = Bradley|first4 = David|last5 = Nielsen|first5 = François|year = 2003|doi = 10.2307/3088901}}</ref><ref>{{Cite web | url=https://www.oecd.org/social/expenditure.htm | title=Social Expenditure – Aggregated data|work=[[Organisation for Economic Co-operation and Development]]}}</ref>

[[Image:Nz economy.png|thumb|right|Economy of New Zealand by sector and organisation type]]New Zealand's diverse economy is made up of various types of informal and formal organisations, divided between the [[Public sector|public]] and [[Private sector|private]] sectors. It has a sizeable [[service sector]], accounting for 73% of all GDP activity {{as of |2024 | lc = on}}.<ref name="profile_economy">{{cite web |url= https://www.stats.govt.nz/information-releases/gross-domestic-product-june-2024-quarter/ |title= Gross domestic product: June 2024 quarter |publisher=[[Statistics New Zealand]] |date= 
June 2024 |access-date= 20 September 2024}}</ref> As a large island nation New Zealand has abundant natural resources and mineral wealth.<ref>{{Cite web |publisher=[[New Zealand Petroleum and Minerals]] |title=Mineral resources potential |url= https://www.nzpam.govt.nz/nz-industry/nz-minerals/resources-potential/ |access-date=9 February 2024 }}</ref> Prominent manufacturing industries include aluminium<!--this is the New Zealand English spelling--> production, food processing, metal fabrication, wood and paper products. Goods-producing industries accounted for 20% of GDP {{as of |2024 | lc = on}}.<ref name="profile_economy" /> The primary sector continues to dominate New Zealand's exports, despite accounting for only 7% of GDP {{as of |2024 | lc = on}}.<ref name="profile_economy" /> The [[Information technology industry in New Zealand|information technology sector]] is growing rapidly.<ref>{{cite web|url=https://nztech.org.nz/info-hub/about-the-sector/|title=NZ Tech – About the Tech Sector|access-date=7 January 2020}}</ref>

The major capital market is the [[New Zealand Exchange]] (NZX). {{As of|2023|February}}, NZX had a total of 338 listed securities, equity, debt and funds with a combined market capitalisation of NZD $226 billion.<ref>{{cite web |date=23 February 2023 |title=1. NZX Annual Report 2022 (including audited financial statements) |url=http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/NZX/407184/389180.pdf |access-date=26 October 2023 |website=NZX}}</ref> New Zealand's currency, the [[New Zealand dollar]], also circulates in four Pacific Island territories. The New Zealand dollar is the 10th-most traded currency in the world.<ref name="BIS">
{{cite web| title= Triennial Central Bank Survey, April 2013| url= http://bis.org/publ/rpfx13fx.pdf| work= Triennial Central Bank Survey| publisher=[[Bank for International Settlements]]| access-date= 25 March 2014}} [pg.10 of PDF]</ref>

{{toc limit|4}}

==History==
{{main|Economic history of New Zealand}}
[[File:Fonterra Facility Near Hamilton.jpg|thumb|right|Agriculture (especially dairy farming{{snd}}such as for the [[Fonterra]] plant shown) is a major export earner.]]
[[File:Kinleith Mill, Tokoroa, New Zealand.jpg|thumb|right|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.<ref name="Page 4 – Early pastoral economy">{{cite encyclopedia|url=http://www.teara.govt.nz/en/economic-history/page-4|title=Early pastoral economy|encyclopedia=[[Te Ara: The Encyclopedia of New Zealand]]|page=4}}</ref> 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%.<ref name="NZHA">{{cite book |title=New Zealand Historical Atlas |editor= McKinnon, Malcolm |publisher=David Bateman |year= 1997}}</ref> 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.<ref name="refridge1">{{cite web|url=http://www.nzibf.co.nz/index.asp?pageID=2145856137#the-introduction-of-refrigeration|title=The introduction of refrigeration|publisher=NZ International Business Forum|access-date=19 October 2014|archive-url=https://web.archive.org/web/20150513005945/http://www.nzibf.co.nz/index.asp?pageID=2145856137#the-introduction-of-refrigeration|archive-date=13 May 2015|url-status=dead}}</ref>

In the 1960s, prices for these traditional exports declined, and in 1973 New Zealand lost its [[Preferential trading area|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 [[purchasing power parity|adjusted for purchasing power]] declined from about 115% of the [[OECD]] average to 80%.<ref>{{cite journal |url=http://www.rbnz.govt.nz/research_and_publications/reserve_bank_bulletin/2007/2007mar70_1drew.pdf |title=New Zealand's productivity performance and prospects |last=Drew |first=Aaron |journal=Bulletin |volume=70 |issue=1 |access-date=10 February 2008 |url-status=dead |archive-url=https://web.archive.org/web/20140508095051/http://www.rbnz.govt.nz/research_and_publications/reserve_bank_bulletin/2007/2007mar70_1drew.pdf |archive-date=8 May 2014}}</ref>

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.<ref>{{cite journal|url= https://ideas.repec.org/a/aea/jeclit/v34y1996i4p1856-1902.html|title=Economic Reform in New Zealand 1984–95: The Pursuit of Efficiency|first1=Lewis |last1=Evans|first2= Arthur|last2= Grimes|first3= Bryce
|last3= Wilkinson|journal= Journal of Economic Literature|volume= 34 | issue = 4 |pages= 1856–902|date=December 1996|access-date=4 October 2012}}</ref> 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.<ref name="SALE"/><ref name="IHT">{{cite news |url=http://www.iht.com/articles/2005/09/13/business/biz.php |title=New Zealand rated most business-friendly |work=International Herald Tribune |date=14 September 2005}}</ref> The economy diversified and by 2008, tourism had become the single biggest generator of foreign exchange.<ref name="diversify">{{cite encyclopedia|url=http://www.teara.govt.nz/en/economic-history/page-10|title=External diversification after 1966|encyclopedia=[[Te Ara: The Encyclopedia of New Zealand]]|access-date=9 December 2014|page=10}}</ref>

=== Early years ===
Prior to European settlement and colonisation of New Zealand, [[Māori people|Māori]] had a [[Subsistence agriculture|subsistence economy]], the basic economic unit of which was the sub-tribe or [[hapū]] in which [[Disvision of labour|labour was divided]].<ref name="maori_economy" /> From the 1790s, the waters around New Zealand were visited by British, French and American [[Whaling in New Zealand|whaling]], [[Seal hunting|sealing]] and trading ships. Their crews traded European goods, including guns and metal tools, for Māori food, water, wood, [[New Zealand flax|flax]] and [[prostitution|sex]].<ref name="king">{{cite book|title=The Penguin History of New Zealand|last=King|first=Michael|author-link=Michael King (historian)| isbn=978-0-14-301867-4|year=2003|publisher=Penguin Books }}</ref> 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 of New Zealand|colony]]. Settlers continued to be dependent on Māori for food until the 1860s.<ref name="maori_economy">{{cite encyclopedia|url=http://www.teara.govt.nz/en/economic-history/page-2|title=Early Māori economies|encyclopedia=[[Te Ara: The Encyclopedia of New Zealand]]|page=2|access-date=9 December 2014}}</ref><ref name="king" /> 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.<ref>{{cite encyclopedia|url=http://www.teara.govt.nz/en/economic-history/page-3|title=First European economies|encyclopedia=[[Te Ara: The Encyclopedia of New Zealand]]|access-date=9 December 2014}}</ref>

[[Sheep farming in New Zealand|Sheep farming]] began in the [[Wairarapa]] but soon spread up and down the east coast from [[Southland Region|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.<ref name="Page 4 – Early pastoral economy"/> 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.<ref name="Page 4 – Early pastoral economy"/>

In the 1870s, [[Julius Vogel]] was periodically both colonial treasurer and [[Premier of New Zealand|premier]]. He viewed New Zealand as a "Britain of the South Seas"<ref>{{cite encyclopedia|author=Warwick Robert Armstrong|url=http://www.teara.govt.nz/en/1966/vogel-sir-julius-kcmg|title=Vogel, Sir Julius, K.C.M.G|encyclopedia=[[Te Ara: The Encyclopedia of New Zealand]]}}</ref> and began the development of infrastructure in New Zealand investing heavily in roads, railways, telegraphs and bridges funded by public borrowing.<ref>{{cite encyclopedia|url=http://www.teara.govt.nz/en/economic-history/page-5|title=Boom and bust, 1870–1895|page=5|encyclopedia=[[Te Ara: The Encyclopedia of New Zealand]]|access-date=11 December 2014}}</ref> 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.<ref name="refridge1" /> 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 in New Zealand|dairy farming]] became increasingly viable in areas which were less suitable for sheep, particularly in [[Northland Region|Northland]], the [[Waikato]] and [[Taranaki]]. As dairying developed, the [[North Island]] slowly became more important to the economy.<ref name="refridge" /> Britain became the sole market for meat and animal products in New Zealand, owing to the increase in its land cultivation and farming. 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.<ref>{{cite book|author=Baten, Jörg |title=A History of the Global Economy. From 1500 to the Present.|date=2016|publisher=Cambridge University Press|page=287|isbn=978-1107507180}}</ref>

=== 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,<ref name="central bank">{{cite encyclopedia|url=http://www.teara.govt.nz/en/economic-history/page-7|title=Inter-war years and depression|encyclopedia=[[Te Ara: The Encyclopedia of New Zealand]]}}</ref> 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]],<ref>{{cite web |last1=Liu |first1=Shirley |title=The history of the New Zealand dollar |url=https://www.finder.com/the-new-zealand-dollar |website=finder.com US |access-date=11 August 2019 |date=13 October 2015 |archive-date=10 August 2019 |archive-url=https://web.archive.org/web/20190810132222/https://www.finder.com/the-new-zealand-dollar |url-status=dead }}</ref> before being floated in 1985.<ref>{{Cite web |date=24 July 2007 |title=Currency: A chronology of the kiwi's rises and falls |url=https://www.nzherald.co.nz/business/icurrencyi-a-chronology-of-the-kiwis-rises-and-falls/H3XUKVUQ5LR2J2XM6DJZAVRJEQ/ |access-date=20 September 2024 |website=[[The New Zealand Herald]] |language=en-NZ}}</ref>

By the mid-20th century, pastoral-farming products made up more than 90% of New Zealand's exports,<ref name="refridge">{{cite encyclopedia|url=http://www.teara.govt.nz/en/economic-history/page-6|title=Refrigeration, dairying and the Liberal boom|encyclopedia=[[Te Ara: The Encyclopedia of New Zealand]]}}</ref> 65% of which was going to Britain in the 1950s. As a former colony, the United Kingdom provided New Zealand with [[Preferential trading area|preferential trade quotas]].<ref name="uktrade">{{Cite web |last1=Chris |first1=Nixon |last2=Yeabsley |first2=John |date=11 February 2010 |title=Overseas trade policy – New Zealand, Britain and the EEC |url=https://teara.govt.nz/en/overseas-trade-policy/page-4 |access-date=20 September 2024 |website=[[Te Ara – the Encyclopedia of New Zealand]] }}</ref> This 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 started phasing out preferential quotas.<ref name="uktrade" /><ref name="New Zealand's trade history">{{cite web|url=http://www.nzibf.co.nz/index.asp?pageID=2145856137#the-introduction-of-refrigeration|title=New Zealand's trade history|publisher=New Zealand International Business Forum|access-date=19 October 2014|archive-url=https://web.archive.org/web/20150513005945/http://www.nzibf.co.nz/index.asp?pageID=2145856137#the-introduction-of-refrigeration|archive-date=13 May 2015|url-status=dead}}</ref> 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]].
[[File:Tiwai Point Aluminium Smelter.jpg|thumb|[[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 ([[Closer Economic Relations|Australia New Zealand Free Trade Agreement]]) in 1965,<ref>{{cite encyclopedia|url=https://nzhistory.govt.nz/culture/the-1960s/1965|title=NAFTA signed|encyclopedia=[[Te Ara: The Encyclopedia of New Zealand]]|access-date=8 December 2014}}</ref> and opening new diplomatic posts in Hong Kong, Jakarta, Saigon, Los Angeles and San Francisco.<ref name="NZHA" /> 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".<ref name="luxembourg">{{cite encyclopedia|url=http://www.teara.govt.nz/en/international-economic-relations/page-4|title=Britain, New Zealand and the EU after 1940|encyclopedia=[[Te Ara: The Encyclopedia of New Zealand]]|access-date=8 December 2014}}</ref>

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.<ref name="luxembourg" /> By the end of that year, only 26.8% of New Zealand's exports were to Britain.<ref>{{cite web|title=New Zealand's Export Markets year ended June 2000 (provisional)|url=http://www2.stats.govt.nz/domino/external/PASFull/pasfull.nsf/b45013b35df34b774c2567ed00092825/4c2567ef00247c6acc256965007ea4a8?OpenDocument|publisher=[[Statistics New Zealand]]|access-date=15 June 2008|date=June 2000|url-status=dead|archive-url=https://web.archive.org/web/20100515102632/http://www2.stats.govt.nz/domino/external/PASFull/pasfull.nsf/b45013b35df34b774c2567ed00092825/4c2567ef00247c6acc256965007ea4a8?OpenDocument|archive-date=15 May 2010}}</ref> 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.<ref name="New Zealand's trade history"/>

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.<ref name="inflation">{{cite web|url=http://www.rbnz.govt.nz/statistics/key_graphs/inflation/|title=Inflation|publisher=[[Reserve Bank of New Zealand]]|access-date=8 December 2014|url-status=dead|archive-url=https://web.archive.org/web/20141207175723/http://www.rbnz.govt.nz/statistics/key_graphs/inflation/|archive-date=7 December 2014}}</ref>

==== Think Big ====
{{main|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 fertiliser, 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.<ref name="diversify" />

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.<ref name="In the shadow of Think Big">{{cite news|url=http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=10703096|title=In the shadow of Think Big|work=[[The New Zealand Herald]]|date=31 January 2011}}</ref>

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.<ref name="aluminium_exports">{{cite web|url=http://www.nzas.co.nz/|publisher=New Zealand Aluminium Smelter Limited|title=Introduction|access-date=8 December 2014}}</ref>

Most of these projects turned out to be ill-timed as they 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.<ref name="inflation" /> 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.<ref name="In the shadow of Think Big"/>

The Muldoon Government did, however, make some moves towards deregulation. For example, in 1982 it removed the [[Transport Licensing Act 1931|transport licensing restrictions]] on road carriers carting goods more than 150&nbsp;km, and turned [[New Zealand Railways Department|the Railways Department]] into a [[New Zealand Railways Corporation|statutory corporation]].

==== Rogernomics ====
{{main|Rogernomics}}
{{Rquote|right|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.<ref>{{cite journal|author=Jack H. Nagel|title=Social Choice in a Pluralitarian Democracy: The Politics of Market Liberalization in New Zealand|journal=British Journal of Political Science|volume=28|issue=2|date=1998|pages=223–67|jstor=194306|doi=10.1017/s0007123498000155|s2cid=154322735 }}</ref>}}
The [[Fourth Labour Government of New Zealand|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 subsidy|agricultural subsidies]] were eliminated; import regulations were loosened up; the exchange rate was floated; and controls on [[interest rate]]s, 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]].

[[File:New Zealand Dollar - Australian Dollar Exchange Rate.webp|thumb|335px|
{{legend|#012169|[[New Zealand dollar|New Zealand Dollar]] / [[Australian dollar|Australian Dollar]] [[exchange rate]]|outline=#C8102E}}
]]
[[File:New Zealand Dollar - USD Exchange Rate.webp|thumb|300px|
{{legend|#012169|[[New Zealand dollar|NZD]] / [[United States dollar|USD]] [[exchange rate]]|outline=#C8102E}}
]]
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 [[Floating exchange rate|floated]] on 4 March 1985, allowing for the value of the dollar to change with the market.<ref name="exchangerate">{{cite web|url=http://www.rbnz.govt.nz/news/2005/1450563.html|title=20 years of a floating New Zealand dollar|publisher=[[Reserve Bank of New Zealand]]|url-status=dead|archive-url=https://web.archive.org/web/20141025214531/http://www.rbnz.govt.nz/news/2005/1450563.html|archive-date=25 October 2014|access-date=25 October 2014}}</ref> Prior to the dollar being floated, the dollar was [[Fixed exchange-rate system|pegged]] against a basket of currencies.<ref name="exchangerate" />

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 ([[Goods and Services Tax (New Zealand)|GST]]) initially set at 10%, then increased to 12.5% in 1989 and to 15% in 2010. A [[surtax]] on universal superannuation was also introduced.<ref name="king" /> Many government departments were corporatised, and from 1 April 1987 became [[State-owned enterprises of New Zealand|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.{{sfn|Russell|1996|p=119}}

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, [[Black Monday (1987)|sharemarket crash of 1987]], in which New Zealand's sharemarket shed 60% from its 1987 peak, and taking several years to recover.<ref name="NZSE">{{cite web|url=http://www2.stats.govt.nz/domino/external/web/nzstories.nsf/0/1ea7f51215015a74cc256b1f0004f99a/Body/0.2856?OpenElement&FieldElemFormat=jpg|title=Share Price Index, 1987–1998|url-status=dead|archive-url=https://web.archive.org/web/20100525104207/http://www2.stats.govt.nz/domino/external/web/nzstories.nsf/0/1ea7f51215015a74cc256b1f0004f99a/Body/0.2856?OpenElement&FieldElemFormat=jpg|archive-date=25 May 2010}}</ref><ref>{{cite web|url=http://www2.stats.govt.nz/domino/external/web/nzstories.nsf/0/1ea7f51215015a74cc256b1f0004f99a?OpenDocument|title=Commercial Framework: Stock exchange, New Zealand Official Yearbook 2000|publisher=[[Statistics New Zealand]]|access-date=8 December 2014|url-status=dead|archive-url=https://web.archive.org/web/20160304054026/http://www2.stats.govt.nz/domino/external/web/nzstories.nsf/0/1ea7f51215015a74cc256b1f0004f99a?OpenDocument|archive-date=4 March 2016}}</ref>

[[File:New Zealand money supply and inflation.webp|thumb|290px|New Zealand money supply and inflation
{{legend-line|#C8102E solid 3px|M3 money supply increases}}
{{legend-line|#61D836 solid 3px|Housing inflation}}
{{legend-line|#00A2FF solid 3px|[[Consumer price index]]}}
]]
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.<ref name="Kelsey, Jane" /> The unemployment rate rose from 3.6% to 11%,<ref>{{cite web|author=OECD |url=http://stats.oecd.org/Index.aspx?DatasetCode=LFS_SEXAGE_I_R |title=LFS by sex and age – indicators |publisher=Stats.oecd.org |date=28 January 1988 |access-date=5 September 2018}}</ref> New Zealand's credit rating dropped twice, and foreign debt quadrupled.<ref name="Kelsey, Jane" /> In 1989 the [[Reserve Bank of New Zealand|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.<ref name="inflation" /> However, the tightening of monetary policy contributed to rising unemployment in the early 1990s.<ref>{{cite web|url=http://www.rbnz.govt.nz/statistics/key_graphs/employment/|title=Reserve Bank statistics – Employment|publisher=[[Reserve Bank of New Zealand]]|access-date=8 December 2014|url-status=dead|archive-url=https://web.archive.org/web/20160122080135/http://rbnz.govt.nz/statistics/key_graphs/employment/|archive-date=22 January 2016}}</ref>

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 [[Early 1990s recession|recession in the early 1990s]]. The National Party was returned to power at the [[1990 New Zealand general election|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]]',<ref name="ReferenceB">{{cite news|url= http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=10418702|title=New Zealand as it might have been: From Ruthanasia to President Bolger|work=[[The New Zealand Herald]]|date=12 January 2007|access-date=8 December 2014}}</ref> 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.<ref>{{cite web|url= https://nzhistory.govt.nz/culture/we-call-it-home/the-state-steps-in-and-out|title=The state steps in and out – housing in New Zealand|last= Ministry for Culture and Heritage|work=New Zealand history online|date= 29 February 2012|access-date=9 July 2012}}</ref> Richardson also introduced [[User pays|user-pays]] requirements in hospitals and schools.<ref name="ReferenceB"/> 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;<ref name="Kelsey, Jane">{{cite web |url=http://www.converge.org.nz/pma/apfail.htm |title=Life in the Economic Test-Tube: New Zealand 'experiment' a colossal failure |author=Kelsey, Jane |date=9 July 1999 |access-date=26 January 2012 |archive-url=https://web.archive.org/web/20161102180330/http://www.converge.org.nz/pma/apfail.htm |archive-date=2 November 2016 |url-status=dead }}</ref> and the economic benefits of privatisation have been questioned.<ref>{{cite news |first=Murray |last=Dobbin |title=New Zealand's Vaunted Privatization Push Devastated The Country, Rather Than Saving It |url=http://www.commondreams.org/views/081500-106.htm |publisher=The National Post (Canada) |date=15 August 2000 |url-status=dead |archive-url=https://web.archive.org/web/20130324004056/http://www.commondreams.org/views/081500-106.htm |archive-date=24 March 2013}}</ref> Gross domestic product per capita stagnated between 1986–87 and 1993–94, and by March 1992 unemployment rose to 11.1%<ref>{{cite encyclopedia|url=http://www.teara.govt.nz/en/economic-history/page-11|title=Government and market liberalisation|page=11|encyclopedia=[[Te Ara: The Encyclopedia of New Zealand]]}}</ref> Between 1985 and 1992, New Zealand's economy grew by 4.7% during the same period in which the average [[Organisation for Economic Co-operation and Development|OECD]] nation grew by 28.2%.<ref>{{cite web|url=http://stats.oecd.org/Index.aspx?DatasetCode=SNA_TABLE1|title=1. Gross domestic product (GDP)|last=OECD|website=stats.oecd.org}}</ref> From 1984 to 1993 inflation averaged 9% per year, New Zealand's credit rating dropped twice, and foreign debt quadrupled.<ref name="Kelsey, Jane" /> Between 1986 and 1993, the unemployment rate rose from 3.6% to 11%.<ref>{{cite web|url=http://stats.oecd.org/Index.aspx?DatasetCode=LFS_SEXAGE_I_R|publisher=OECD|title=New Zealand Unemployment Data Set}}</ref>

[[File:Postal deregulation New Zealand.jpg|thumb|right|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 ''[[The Wall Street Journal]]'' ranked New Zealand 99.9% in "[[Ease of doing business index|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.<ref>{{cite news |url=http://www.nzherald.co.nz/category/story.cfm?c_id=34&objectid=10487077 |title=Survey ranks NZ in top six for economic freedom |work=[[The New Zealand Herald]]|date= 16 January 2008}}</ref>

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&nbsp;billion ({{as of|2009|lc=on|alt=as at 2009}}).<ref name="RUD">{{cite news |url= http://www.nzherald.co.nz/auckland-region/news/article.cfm?l_id=117&objectid=10598019 |first=Brian |last=Rudman |title= Government must plug those leaks |work=[[The New Zealand Herald]]|date= 18 September 2009}}</ref>

=== 21st century ===

[[File:NzGDPdata 720by540.svg|thumb|New Zealand gross domestic product and net international debt]]Unemployment continued to fall from 1993 to 1994 fiscal year, until the onset of the [[1997 Asian financial crisis]] again pushed the rate higher.<ref>{{cite web|url=http://www.treasury.govt.nz/publications/research-policy/wp/2014/14-03/twp14-03.pdf|title=New Zealand Labour Market Dynamics: Pre- and Post-global Financial Crisis|author=Weshah Razzak|date=February 2014|publisher=[[New Zealand Treasury]]|access-date=13 December 2014|archive-url=https://web.archive.org/web/20150125084828/http://www.treasury.govt.nz/publications/research-policy/wp/2014/14-03/twp14-03.pdf|archive-date=25 January 2015|url-status=dead}}</ref> By 2016 the unemployment rate decreased to 5.3 percent, the lowest level in 7 years.<ref>{{cite web|last1=Joyce|first1=Steven|title=Unemployment figure lowest in seven years|url=https://www.beehive.govt.nz/release/unemployment-figure-lowest-seven-years|website=beehive.govt.nz|publisher=New Zealand Government|date=3 February 2016}}</ref>

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%.<ref name="treasury.govt.nz">{{cite web|url=http://www.treasury.govt.nz/economy/overview/2014/nzefo-14.pdf|title=Recent Economic Performance and Outlook|publisher=[[New Zealand Treasury]]|date=2014|access-date=26 December 2014|archive-url=https://web.archive.org/web/20150118145139/http://www.treasury.govt.nz/economy/overview/2014/nzefo-14.pdf|archive-date=18 January 2015|url-status=dead}}</ref> However, in early 2008 the economy entered recession, before the effects of the [[Great Recession]] 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.<ref name="treasury.govt.nz" />

Around the world instability was developing in the finance sector. This reached a peak in September 2008 when the [[bankruptcy of Lehman Brothers]] sparked the  [[2008 financial crisis]].<ref>{{cite web|url=http://www.oag.govt.nz/2014/treasury-progress|title=The Treasury: Learning from managing the Crown Retail Deposit Guarantee Scheme|publisher=[[Controller and Auditor-General of New Zealand]]}}</ref>

====Finance company collapses (2006–2012)====
{{main|Finance company collapses, 2006–2012 (New Zealand)}}
[[File:New Zealand bonds.webp|thumb|300px|right|New Zealand bonds <br> [[Inverted yield curve]] in 1994–1998 and 2004–2008
{{legend-line|#012169 solid 3px|20 year}}
{{legend-line|#61D836 solid 3px|10 year}}
{{legend-line|#929292 solid 3px|2 year}}
{{legend-line|#F8BA00 solid 3px|3 month}}
{{legend-line|#FF2600 solid 3px|1 month}}
]]
During the [[2008 financial crisis]], business and consumer confidence in New Zealand plummeted as dozens of finance companies collapsed.<ref>{{cite conference |ssrn=1906923 |last1=Yahanpath |first1=Noel |last2=Cavanagh |first2=John |title=Causes of New Zealand Finance Company Collapses: A Brief Review |publisher=Social Science Research Network |year=2011}}</ref> 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.<ref>{{cite web |url=http://www.rbnz.govt.nz/news/2008/3462912.html |title=Deposit guarantee scheme introduced |publisher=[[Reserve Bank of New Zealand]] |url-status=dead |archive-url=https://web.archive.org/web/20081014133958/http://www.rbnz.govt.nz/news/2008/3462912.html |archive-date=14 October 2008}}</ref> This protected some investors but nevertheless, at least 67 [[Finance company collapses (New Zealand)|finance companies collapsed]] within a short period of time.<ref>{{cite web|url=http://www.interest.co.nz/saving/deep-freeze-list|title=Deep freeze list – Finance industry failures|publisher=Interest.co.nz}}</ref> The largest of these was [[South Canterbury Finance]] which cost taxpayers NZ$1.58 billion when the company collapsed in August 2010.<ref>{{cite news|url=http://www.nzherald.co.nz/finance-companies-in-freefall/news/article.cfm?c_id=1501786&objectid=11344320|title=Fran O'Sullivan: Treasury must front up over role in SCF debacle|work=[[The New Zealand Herald]]|date=18 October 2014}}</ref> The directors of many of these finance companies were subsequently investigated for fraud and some high-profile directors went to prison.<ref>{{Cite news|url = http://www.stuff.co.nz/auckland/local-news/5555324/Nathans-Finance-directors-jailed|title = Nathans Finance directors jailed|last1 = Krause|first1 = Nick|date = 2 September 2011|work =[[Stuff (website)|Stuff]] |access-date = 22 January 2017|last2 = Mace|first2 = William}}</ref><ref>{{Cite news|url = http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10830868|title = Capital + Merchant directors jailed|last = Fletcher|first = Hamish|date = 31 August 2012|work=[[The New Zealand Herald]]|access-date = 22 January 2017}}</ref><ref>{{cite news|url=http://www.stuff.co.nz/business/money/6755429/Prison-for-Bridgecorp-director|access-date=22 January 2017|title=Prison for Bridgecorp director|date=17 April 2012|work=Stuff.co.nz}}</ref><ref>{{cite news|url=http://www.stuff.co.nz/business/money/6808877/Remorseless-director-Rod-Petricevic-jailed|access-date=22 January 2017|title=Remorseless director Rod Petricevic jailed|date=26 April 2012|work=Stuff.co.nz}}</ref><ref>{{cite web|url=http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11157691|access-date=22 January 2017|title=David Ross gets 10 years,10 months jail|date=15 November 2013|work=[[The New Zealand Herald]]}}</ref>

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.<ref name="treasury.govt.nz"/>

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 totalling 3.5%.<ref name="treasury.govt.nz" /> 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 Region|Canterbury]] after the [[Christchurch earthquakes]] and recovery in domestic demand.<ref name="treasury.govt.nz" /> Through 2011, global conditions deteriorated and the terms of trade eased off their 2011 peak, continuing to moderate until September 2012.

===="Rock star" economy====
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".<ref>{{cite news|url=http://www.stuff.co.nz/business/industries/10421920/NZ-economy-could-hit-the-rocks-economists|title=NZ economy could hit the rocks – economists|work=[[Stuff (website)|Stuff]] |date=25 August 2014}}</ref> Another financial commentator said the New Zealand dollar was the "hottest" currency of 2014.<ref>{{cite news |url=http://www.stuff.co.nz/business/industries/9583473/New-Zealand-2014s-rock-star-economy|title=New Zealand 2014's 'rock star' economy|work=[[Stuff (website)|Stuff]]|date=7 January 2014}}</ref> 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!"<ref>{{cite web|url=http://www.productivity.govt.nz/blog/rock-star-economy-or-one-hit-wonder|title=Rock star economy or one hit wonder?|publisher=[[New Zealand Productivity Commission]]|date=17 April 2014|access-date=26 December 2014|archive-date=23 January 2019|archive-url=https://web.archive.org/web/20190123031258/https://www.productivity.govt.nz/blog/rock-star-economy-or-one-hit-wonder|url-status=dead}}</ref> In August, Bloxham admitted that "the sharp decline in dairy prices over the last six months has clouded the outlook somewhat".<ref>{{cite news |url=http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11311136|title=NZ's 'rock star' status dims|work=[[The New Zealand Herald]]|date=19 August 2014}}</ref> In December however Bloxham stated that he thought the New Zealand economy would continue to grow strongly.<ref>{{cite news|url=http://www.stuff.co.nz/business/industries/63785109/Rock-star-economy-to-play-on|title='Rock star' economy to play on|author=Niko Kloeten|work=[[Stuff (website)|Stuff]]|date=3 December 2014 |access-date=21 January 2015}}</ref>

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".<ref>{{cite news|url=https://www.theguardian.com/commentisfree/2014/dec/12/how-new-zealands-rich-poor-divide-killed-its-egalitarian-paradise|title=How New Zealand's rich-poor divide killed its egalitarian paradise|work=[[The Guardian]]|date=12 December 2014|access-date=21 January 2015}}</ref>

====COVID-19 pandemic and recession (2020–22)====
{{main|Economic impact of the COVID-19 pandemic in New Zealand}}
New Zealand recorded its [[COVID-19 pandemic in New Zealand|first case of COVID-19]] on 28 February 2020. In response to the [[COVID-19 pandemic|pandemic]], the country [[New Zealand government response to the COVID-19 pandemic|closed its borders]] to everyone except New Zealand citizens and residents on 19 March, and went into full [[lockdown]] from 26 March to 27 April, followed by a partial lockdown from 28 April to 13 May.

The border closure combined with the lockdowns saw the retail, accommodation, hospitality, and transport sectors experiencing major declines. On 17 September 2020, New Zealand officially entered a recession, with the country's gross domestic product retracting by 12.2% in the June quarter.<ref>{{cite news |title=Covid-19: GDP results show NZ officially in first recession in a decade |url=https://www.rnz.co.nz/news/business/426270/covid-19-gdp-results-show-nz-officially-in-first-recession-in-a-decade |access-date=17 September 2020 |work=[[Radio New Zealand]] |date=17 September 2020 |archive-url=https://web.archive.org/web/20200917051201/https://www.rnz.co.nz/news/business/426270/covid-19-gdp-results-show-nz-officially-in-first-recession-in-a-decade |archive-date=17 September 2020|url-status=live}}</ref><ref>{{cite news |last1=Pullar-Strecker |first1=Tom |title=NZ in recession as Covid shrinks GDP by 12.2% |url=https://www.stuff.co.nz/business/122796028/nz-in-recession-as-covid-shrinks-gdp-by-122 |access-date=17 September 2020 |work=[[Stuff (website)|Stuff]] |date=17 September 2020 |archive-url=https://web.archive.org/web/20200917001110/https://www.stuff.co.nz/business/122796028/nz-in-recession-as-covid-shrinks-gdp-by-122 |archive-date=17 September 2020|url-status=live}}</ref><ref>{{cite news |last1=Roy |first1=Eleanor |title=New Zealand in Covid recession after worst quarterly GDP fall on record |url=https://www.theguardian.com/world/2020/sep/17/new-zealand-in-covid-recession-after-worst-quarterly-gdp-fall-on-record |access-date=17 September 2020 |work=[[The Guardian]] |date=16 September 2020 |archive-url=https://web.archive.org/web/20200917043007/https://www.theguardian.com/world/2020/sep/17/new-zealand-in-covid-recession-after-worst-quarterly-gdp-fall-on-record |archive-date=17 September 2020|url-status=live}}</ref> The GDP rebounded 14% in the September quarter to leave a 2.2% year-on-year retraction.<ref>{{Cite web|date=16 December 2020|title=GDP jump of 14 per cent completes NZ's 'V'-shaped recovery|url=https://www.stuff.co.nz/business/123696832/gdp-jump-of-14-per-cent-completes-nzs-vshaped-recovery|access-date=9 February 2021|website=[[Stuff (website)|Stuff]] |language=en}}</ref>

After successfully containing the virus, the New Zealand economy had sharp growth in what is known as a V-shaped recovery and ended the year with an overall economic expansion of 0.4%, better than the predicted 1.7% contraction.<ref>{{Cite web|title=A country with one of the strictest COVID lockdowns is seeing a V-shaped recovery|url=https://fortune.com/2020/12/17/new-zealand-covid-lockdown-economy-recovery/|access-date=27 January 2021|website=Fortune|language=en}}</ref> Unemployment also dropped to 4.9% in December 2020, down from a peak Covid effected rate of 5.3% in September.<ref>{{Cite web|date=2 February 2021|title=Shock fall in unemployment to 4.9%|url=https://www.stuff.co.nz/business/124119700/shock-fall-in-unemployment-to-49|access-date=2 February 2021|website=[[Stuff (website)|Stuff]] |language=en}}</ref>

Restrictions returned in late 2021<ref>{{Cite news |title=COVID-19: NZ to plunge into lockdown |url=https://www.newshub.co.nz/home/new-zealand/2021/08/new-zealand-to-enter-covid-19-alert-level-4-from-midnight-tuesday.html |archive-url=https://web.archive.org/web/20210817063420/https://www.newshub.co.nz/home/new-zealand/2021/08/new-zealand-to-enter-covid-19-alert-level-4-from-midnight-tuesday.html |url-status=dead |archive-date=17 August 2021 |access-date=20 September 2024 |work=[[Newshub]] |language=en}}</ref> after COVID-19 was again present in New Zealand and continued until late 2023.<ref name=":0">{{Cite web |date=15 August 2023 |title=Covid-19 restrictions dropped: What you need to know |url=https://www.rnz.co.nz/news/covid-19/495844/covid-19-restrictions-dropped-what-you-need-to-know |access-date=20 September 2024 |website=[[RNZ]] |language=en-nz}}</ref>

By 23 September 2021, the Restaurant Association's Chief executive Marisa Bidois estimated that about 1,000 hospitality businesses nationwide had been forced to close as a result of the COVID-19 pandemic, leading to the loss of 13,000 jobs. In response, the Association lobbied the Government for Government for continued wage subsidies and incentives to boost customer rates.<ref>{{cite news |last1=Bhattarai |first1=Rahul |title=Covid 19 Delta outbreak: Restaurant Association unveils roadmap as industry loses 13,000 jobs |url=https://www.nzherald.co.nz/business/covid-19-delta-outbreak-restaurant-association-unveils-roadmap-as-industry-loses-13000-jobs/RKOURIJAOVWLUCLKCCUOTPS6R4/ |access-date=1 February 2022 |work=[[The New Zealand Herald]] |date=23 September 2021 |archive-url=https://web.archive.org/web/20210923023036/https://www.nzherald.co.nz/business/covid-19-delta-outbreak-restaurant-association-unveils-roadmap-as-industry-loses-13000-jobs/RKOURIJAOVWLUCLKCCUOTPS6R4/ |archive-date=23 September 2021|url-status=live}}</ref> On 13 November 2021, the ''[[Bay of Plenty Times]]'' reported that 26,774 companies had been liquidated during the first eight months of 2021.<ref>{{cite news |last1=Hall |first1=Carmen |title=Gone: 26,774 businesses wiped off NZ Companies Office Register in eight months |url=https://www.nzherald.co.nz/bay-of-plenty-times/news/gone-26774-businesses-wiped-off-nz-companies-office-register-in-eight-months/TST3SQDTIQ444TW2NBVUCU2MZ4/ |access-date=1 February 2022 |work=[[Bay of Plenty Times]] |publisher=[[NZME]] |date=13 November 2021 |archive-url=https://web.archive.org/web/20211113001156/https://www.nzherald.co.nz/bay-of-plenty-times/news/gone-26774-businesses-wiped-off-nz-companies-office-register-in-eight-months/TST3SQDTIQ444TW2NBVUCU2MZ4/ |archive-date=13 November 2021}}</ref>

On 27 January 2022, New Zealand's inflation rate hit a 30-year record high of 5.9% at the end of 2021. According to figures released by Statistics New Zealand, the rising cost of construction, petrol and rents pushed the consumer price index up 1.4 per cent between October and December 2021. Statistics NZ also recorded a two percent increase in household utilities expenses, which was fuelled by the rising costs of new dwellings (which rose by 16% from 2020) and a 30 percent hike in fuel prices (from NZ $1.87 per litre to $2.45 per litre). Prime Minister [[Jacinda Ardern]] attributed the sharp inflation rate to rising crude oil prices overseas. By contrast, the opposition National Party leader [[Christopher Luxon]] and Finance spokesperson [[Simon Bridges]] attributed rising inflation to the Government's "wasteful" spending.<ref>{{cite news |last1=Rutherford |first1=Hamish |title=Inflation hits 30-year high of 5.9 per cent |url=https://www.nzherald.co.nz/business/inflation-hits-30-year-high-of-59-per-cent/NTY5NODTQT62NMZZHGB3AX4OOM/ |access-date=1 February 2022 |work=[[The New Zealand Herald]] |date=27 January 2022 |archive-url=https://web.archive.org/web/20220129051321/https://www.nzherald.co.nz/business/inflation-hits-30-year-high-of-59-per-cent/NTY5NODTQT62NMZZHGB3AX4OOM/ |archive-date=29 January 2022|url-status=live}}</ref>

On 1 February 2022, an annual report released by the [[Organisation of Economic Cooperation and Development]] (OECD) identified the country's [[COVID-19 managed isolation in New Zealand|border restrictions]] and declining house prices as the main risks facing New Zealand's economy that year. While the OECD report credited New Zealand's [[COVID-19 alert levels in New Zealand|elimination strategy]] and macroeconomic stimuli such as wage and socio-economic subsidies with helping the economy to bounce back to pre-COVID-19 levels, it also warned that excessive Government spending was causing the economy to overheat and substantial increases in household and government debt. The OECD welcomed the Reserve Bank's decision to raise interest rates but also urged the Government to raise the superannuation age, eliminate obstacles to building houses, and reduce government spending. The OECD also supported the introduction of a social insurance scheme for unemployed workers.<ref>{{cite news |title=Border delays and a crash in house prices are the main risks facing the NZ economy – OECD report |url=https://www.rnz.co.nz/news/business/460618/border-delays-and-a-crash-in-house-prices-are-the-main-risks-facing-the-nz-economy-oecd-report |access-date=1 February 2022 |work=[[Radio New Zealand]] |date=1 February 2022 |archive-url=https://web.archive.org/web/20220201022844/https://www.rnz.co.nz/news/business/460618/border-delays-and-a-crash-in-house-prices-are-the-main-risks-facing-the-nz-economy-oecd-report |archive-date=1 February 2022}}</ref>

==== Post COVID-19 pandemic (2023–present) ====
After the last COVID-19 restrictions were abandoned in 2023,<ref name=":0" /> New Zealand entered economic stagnation and recession.<ref>{{Cite web |last=internationalbanker |date=26 June 2024 |title=Second Recession in Less Than 18 Months Subdues New Zealand's Economic Outlook |url=https://internationalbanker.com/finance/second-recession-in-less-than-18-months-subdues-new-zealands-economic-outlook/ |access-date=20 September 2024 |website=International Banker |language=en-GB}}</ref> Continued inflation, interest rate rises and low consumer spending lead to low-to-negative economic growth from 2022 through 2024.<ref>{{Cite web |title=GDP: NZ's economy shrinks by 0.2% |url=https://www.1news.co.nz/2024/09/19/gdp-nzs-economy-shrinks-by-02/ |access-date=20 September 2024 |website=[[1News]] |language=en}}</ref>

==Overview==
[[File:New Zealand balance of payments net international debt.svg|thumb|New Zealand balance of payments and international investment position – net international debt]]In 2015 the [[Social Progress Index]], which covers such areas as [[basic human needs]], foundations of well-being, and the level of opportunity available to citizens, ranked the New Zealand economy fifth in the world.<ref>{{cite web|url= http://www.socialprogressimperative.org/en/data/spi/countries/NZL|title=Social Progress Index – New Zealand|publisher =[[List of countries by Social Progress Index|Social Progress Imperative]]|access-date=5 February 2015|url-status= dead|archive-url= https://web.archive.org/web/20150205040341/http://www.socialprogressimperative.org/en/data/spi/countries/NZL|archive-date = 5 February 2015 | quote = Social Progress Index 87.08 (5th)}}</ref> However, the outlook includes some challenges. New Zealand income levels, which used to be above those of many countries in Western Europe prior to the crisis of the 1970s, 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 (balance of payments)|current-account]] deficits since the early 1970s, peaking at −7.8% of GDP in 2006 but falling to −2.6% of GDP in [[Financial Year|FY]] 2014.<ref name="national_accounts_march_2014">{{cite web|url= http://www.stats.govt.nz/browse_for_stats/economic_indicators/NationalAccounts/NationalAccountsIncomeExpenditure_HOTPYeMar14.aspx|title=National Accounts (Income and Expenditure): Year ended March 2014|date=21 November 2014|access-date= 3 December 2015|publisher=[[Statistics New Zealand]]}}</ref> The CIA World Fact Book estimates New Zealand's 2017 public debt (that owed by the government) at 31.7% of GDP.<ref name="cia world factbook">{{cite web |url= https://www.cia.gov/the-world-factbook/countries/new-zealand/|title= New Zealand |work= The World Fact Book |publisher=[[Central Intelligence Agency]]|access-date= 12 December 2014 | quote = Public debt <br /> 31.7% of GDP (2017 est.) <br /> 33.5% of GDP (2016 est.) <br /> country comparison to the world: 162}}</ref> Between 1984 and 2006, net external foreign debt increased 11-fold, to NZ$182&nbsp;billion.<ref name="SALE"/> {{As of | 2018 | 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.<ref name="debt investment" />
[[File:Debt to GDP ratio New Zealand Government timeseriesnotitle 720by540.svg|thumb|left|New Zealand Government Gross Debt as percent of GDP 1860 to 2000]]
[[File:GDP per capita development in Australia and New Zealand.svg|thumb|left|GDP per capita development in Australia and New Zealand]]
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.<ref name="national_accounts_march_2014" /> 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.<ref name="national_accounts_march_2014" /> 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.<ref>{{cite journal
|url= http://ips.ac.nz/publications/files/00d6c676a95.pdf|title= The banks, the current account, the financial crisis and the outlook|first=Geoff|last=Bertram|journal=Policy Quarterly|volume=5|issue=1|date=February 2009|doi= 10.26686/pq.v5i1.4288|doi-access=free}}</ref>

=== Taxation ===
{{Main|Taxation in New Zealand}}
At the national level the [[Inland Revenue Department (New Zealand)|Inland Revenue Department]] (IRD) collects tax in New Zealand on behalf of the [[New Zealand Government]]. New Zealanders pay national taxes on personal and [[business]] income, and on the supply of [[goods and services]] ([[Goods and Services Tax (New Zealand)|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. [[Territorial authorities of New Zealand|Local authorities]] manage and collect local property taxes ([[rates (tax)|rates]]). Some goods and services carry a specific tax, referred to as an [[Excise| 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.

The [[2010 New Zealand budget]] announced cuts to personal tax-rates, with the top personal tax-rate reduced from 38% to 33%<ref>{{cite web|url=https://taxpolicy.ird.govt.nz/publications/2010-sr-budget2010-special-report/personal-tax-cuts|title=Personal tax cuts|publisher=IRD|date=1 October 2010|access-date=9 March 2015|archive-date=29 January 2019|archive-url=https://web.archive.org/web/20190129111923/https://taxpolicy.ird.govt.nz/publications/2010-sr-budget2010-special-report/personal-tax-cuts|url-status=dead}}</ref> The cuts gave New Zealand the second-lowest personal tax burden in the [[Organisation for Economic Co-operation and Development|OECD]]. Only Mexico's citizens retained a higher percentage-wise "take home" proportion of their salaries.<ref>{{cite news|title= NZ earners' tax burden second-lowest in OECD|url=http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=10644470|access-date= 18 June 2011|work=[[The New Zealand Herald]]|date=12 May 2010|first=Michael|last=Dickison}}</ref>

The cuts in income tax were estimated to reduce revenue by $2.46 billion.<ref>{{cite web|url= http://www.beehive.govt.nz/release/fact-sheet-personal-tax-cuts|title=Fact sheet – Personal tax cuts|author=Bill English |publisher=The Beehive|date=20 May 2010|access-date=9 March 2015|author-link=Bill English}}</ref> To compensate, the National government raised GST from 12.5% to 15%.<ref>{{cite web|url=http://www.ird.govt.nz/technical-tax/legislation/2010/2010-27/leg-2010-27-gst-rate-increase/|title=GST rate increase|publisher=IRD|access-date=11 October 2014|archive-date=24 January 2019|archive-url=https://web.archive.org/web/20190124235237/https://www.ird.govt.nz/technical-tax/legislation/2010/2010-27/leg-2010-27-gst-rate-increase/|url-status=dead}}</ref> 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.<ref>{{cite news|url=http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=10623168|title= GST rise will hurt poor the most|date=30 January 2010|access-date=9 March 2015|work=[[The New Zealand Herald]]|last1= Collins|first1= Simon Collins}}</ref>

=== Corruption ===
{{Main|Corruption in New Zealand}}
New Zealand ranked 1st on the [[Transparency International]] [[Corruption Perceptions Index]] (CPI) of 2017 with a score of 89 out of 100.<ref>{{cite web|title= Transparency International Corruption Perceptions Index 2017|date= 21 February 2018|url= https://www.transparency.org/news/feature/corruption_perceptions_index_2017|publisher= Transparency International|access-date= 25 February 2018|archive-date= 21 February 2018|archive-url= https://web.archive.org/web/20180221190927/https://www.transparency.org/news/feature/corruption_perceptions_index_2017|url-status= dead}}</ref> In 2018 New Zealand ranked 2nd on the Corruption Perceptions Index with a score of 87 out of 100.<ref>{{Cite web|url=https://www.transparency.org/cpi2018|title=2018 Corruption Perceptions Index – Explore the results|date=29 January 2019|access-date=18 April 2020|archive-date=27 April 2019|archive-url=https://web.archive.org/web/20190427092026/https://www.transparency.org/cpi2018|url-status=dead}}</ref> In 2019, New Zealand ranked 1st on the Corruption Perceptions Index with a score of 87 out of 100.<ref>{{Cite web|url=https://www.transparency.org/cpi2019|title=2019 Corruption Perceptions Index – Explore the results|date=24 January 2020|access-date=18 April 2020|archive-date=27 March 2020|archive-url=https://web.archive.org/web/20200327160133/https://www.transparency.org/cpi2019|url-status=dead}}</ref>
Although New Zealand is one of the least corrupt countries in the world, corruption still exists in New Zealand.<ref>{{Cite web |url=https://www.transparency.org.nz/examples-of-corruption-in-new-zealand/ |title=Examples of Corruption in New Zealand – Transparency International New Zealand |access-date=18 April 2020 |archive-date=30 July 2020 |archive-url=https://web.archive.org/web/20200730223334/https://www.transparency.org.nz/examples-of-corruption-in-new-zealand/ |url-status=dead }}</ref>

=== Regional economies ===
{{see also|List of regions of New Zealand by GDP}}
[[Image:Regions of NZ Numbered.svg|thumb|right|Map of [[regions of New Zealand]]]]
In March 2025, [[Statistics New Zealand]] published details of the break-down of gross domestic product in the [[regions of New Zealand]] for the year ended March 2024:<ref>{{cite web |date=26 March 2024 |title=Regional gross domestic product: Year ended March 2023 |url=https://www.stats.govt.nz/information-releases/regional-gross-domestic-product-year-ended-march-2023/ |access-date=26 March 2024 |publisher=[[Statistics New Zealand]]}}</ref>
{|class="wikitable sortable" style="text-align:right;"
! Region (map reference)
! GDP 2024<br>(NZ$ million)
! Share of<br>national GDP
! GDP per capita<br>2024 (NZ$)
! GDP growth<br>2023–24
|-
| style="text-align:left;"| [[Northland Region|Northland]] (1)
| 11,178
| 2.7%
| 54,796
|{{Fluc|+6.5}}%
|-
| style="text-align:left;"| [[Auckland Region|Auckland]] (2)
| 157,281
| 37.9%
| 88,355
|{{Fluc|+5.9}}%
|-
| style="text-align:left;"| [[Waikato]] (3)
| 36,474
| 8.8%
| 68,598
|{{Fluc|+4.6}}%
|-
| style="text-align:left;"| [[Bay of Plenty Region|Bay of Plenty]] (4)
| 23,901
| 5.8%
| 67,650
|{{Fluc|+4.9}}%
|-
| style="text-align:left;"| [[Gisborne Region|Gisborne]] (5)
| 2,938
| 0.7%
| 55,326
|{{Fluc|+5.9}}%
|-
| style="text-align:left;"| [[Hawke's Bay Region|Hawke's Bay]] (6)
| 11,993
| 2.9%
| 64,935
|{{Fluc|+5.6}}%
|-
| style="text-align:left;"| [[Taranaki]] (7)
| 11,140
| 2.7%
| 85,362
|{{Fluc|+4.6}}%
|-
| style="text-align:left;"| [[Manawatū-Whanganui]] (8)
| 15,683
| 3.8%
| 59,834
|{{Fluc|+4.6}}%
|-
| style="text-align:left;"| [[Wellington Region|Wellington]] (9)
| 51,008
| 12.3%
| 92,776
|{{Fluc|+4.4}}%
|-style="background:#FFFFDD;"
| style="text-align:left;"| '''[[North Island]]'''
| '''321,596'''
| '''77.5%'''
| '''79,420'''
|'''{{Fluc|+5.3}}%'''
|-
| style="text-align:left;"| [[Tasman Region|Tasman]] / [[Nelson, New Zealand|Nelson]] (10 / 11){{#tag:ref|Nelson and Tasman are combined by Statistics New Zealand, but are separate regions.|group=*|name=Note2}}
| 7,630
| 1.8%
| 66,293
|{{Fluc|+3.9}}%
|-
| style="text-align:left;"| [[Marlborough Region|Marlborough]] (12)
| 4,383
| 1.1%
| 84,296
|{{Fluc|+5.3}}%
|-
| style="text-align:left;"| [[West Coast, New Zealand|West Coast]] (13)
| 2,597
| 0.6%
| 75,057
|{{Fluc|+7.9}}%
|-
| style="text-align:left;"| [[Canterbury Region|Canterbury]] (14){{#tag:ref|Includes the [[Chatham Islands]].|group=*|name=Note3}}
| 51,675
| 12.5%
| 74,772
|{{Fluc|+6.0}}%
|-
| style="text-align:left;"| [[Otago]] (15)
| 18,226
| 4.4%
| 71,113
|{{Fluc|+6.3}}%
|-
| style="text-align:left;"| [[Southland, New Zealand|Southland]] (16)
| 8,839
| 2.1%
| 83,620
|{{Fluc|+5.2}}%
|-style="background:#FFFFDD;"
| style="text-align:left;"| '''[[South Island]]'''
| '''93,350'''
| '''22.5%'''
| '''74,395'''
|'''{{Fluc|+5.8}}%'''
|-style="background:#FFE8E8;"
| style="text-align:left;"| '''New Zealand'''
| '''414,946'''
| '''100.0%'''
| '''78,233'''
|'''{{Fluc|+5.4}}%'''
|}
{{reflist|group=*}}

=== Unemployment ===
Prior to the economic shock created by Britain's decision to join the [[European Economic Community]] (EEC) in 1973, which removed the UK as New Zealand's primary market for exports,<ref>{{Cite web|title=New Zealand Business Figures|url= https://bizpages.org/countries--NZ--New-Zealand|url-status=live|archive-url=https://web.archive.org/web/20200420170940/https://bizpages.org/countries--NZ--New-Zealand |archive-date=20 April 2020 }}</ref> unemployment in New Zealand was very low. A recession and a collapse in wool prices in 1966 led to unemployment rising by 131%, but still represented only a 0.7% percentage point increase in the unemployment rate.<ref name="dol unemployment">{{cite web|url= http://www.dol.govt.nz/publications/discussion-papers/current-recession/ |title=How bad is the Current Recession? Labour Market Downturns since the 1960s |publisher=[[Ministry of Business, Innovation and Employment]] |access-date=15 December 2014 |url-status=dead |archive-url= https://web.archive.org/web/20141215000257/http://www.dol.govt.nz/publications/discussion-papers/current-recession/ |archive-date=15 December 2014}}</ref>

After 1973, unemployment became a persistent economic and social issue in New Zealand. Recessions from 1976 to 1978 and from 1982 to 1983 greatly increased unemployment again.<ref name="dol unemployment" /> Between 1985 and 2012 the unemployment rate averaged 6.29%. After the stock market [[Black Monday (1987)#New Zealand|crash of 1987]], unemployment rose 170%<ref name="dol unemployment" /> reaching an all-time high of 11.20% in September 1991.<ref name="hlfs December 2015">{{cite web|url= http://www.stats.govt.nz/browse_for_stats/income-and-work/employment_and_unemployment/LabourMarketStatistics_MRDec15qtr.aspx|title= Household Labour Force Survey: December 2015 quarter|date=3 February 2016|access-date=4 December 2014|publisher=[[Statistics New Zealand]]}}</ref> The [[1997 Asian financial crisis]] sent unemployment upwards again, by 28%.<ref name="dol unemployment" /> 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.<ref name="JOB"/> Unemployment numbers are not always directly comparable between OECD nations, as members do not all keep labour market statistics in the same way.

The percentage of the population employed has also increased in recent years, to 68.8% of all inhabitants,{{when|date=May 2021}} with full-time jobs increasing slightly, and part-time occupations decreasing in turn. The increase in the working population percentage is attributed{{by whom|date=May 2021}} to increasing wages and higher costs of living moving more people into employment.<ref name="JOB">{{Cite news| first = Michael| last = Daly| title = Unemployment at record low as job growth surges| url = http://www.nzherald.co.nz/section/3/story.cfm?c_id=3&objectid=10491080| archive-url = https://archive.today/20130223003046/http://www.nzherald.co.nz/section/3/story.cfm?c_id=3&objectid=10491080| url-status = dead| archive-date = 23 February 2013| work= [[The New Zealand Herald]]| publisher = APN Holdings| date = 7 February 2008| access-date = 7 August 2010}}</ref>{{failed verification|date=May 2021}} The low unemployment also had some disadvantages, with many companies unable to fill jobs.

Starting with the [[2008 financial crisis]], unemployment 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 | 2019 | June | lc = on}}.<ref>{{cite web |title=Unemployment Rate |url= https://www.stats.govt.nz/indicators/unemployment-rate |website=Statistics New Zealand |access-date= 10 October 2019}}</ref>

In late July 2025, [[Statistics New Zealand]] reported that the construction and manufacturing sectors had lost over 18,000 filled jobs in 2024. Youth unemployment for people aged 15 to 19 years rose by 10 percent as well.<ref>{{cite news |last1=Weekes |first1=John |title=Unemployment: Construction jobs down more than 12,000 in a year, more youth out of work |url=https://www.nzherald.co.nz/business/economy/employment/unemployment-job-data-show-construction-down-more-than-12000-in-year-more-youth-out-of-work/KBGSJJREQJD7VDVKFVGOCBCLU4/ |access-date=31 July 2025 |work=[[The New Zealand Herald]] |date=28 July 2025|url-access=subscription}}</ref>

=== Housing affordability ===
{{Main|Housing in New Zealand}}
Shamubeel Eaqub, formerly a principal economist at the [[New Zealand Institute of Economic Research]] (NZIER), said in 2014 that thirty years prior, 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.<ref name="nzherald.co.nz">{{cite news|url= http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11293868|title= Why house prices are up and ownership is down|work=[[The New Zealand Herald]]|date=18 July 2014 | quote = Thirty years ago, an average house cost two or three times the average household income. But prices have rocketed since then, especially since 2001. By 2007, an average house cost more than six times household income.}}</ref> International surveys in 2013 showed that housing was unaffordable in all eight of New Zealand's major markets – "unaffordable" being defined as house prices which are more than three times the median regional income.<ref name="ReferenceC">{{cite news|url= http://www.stuff.co.nz/business/money/9629141/Housing-affordability-getting-worse|title=Housing affordability getting worse|work=[[Stuff (website)|Stuff]]|date=20 January 2014}}</ref>

Demand for property has been strongest in Auckland. In 2014 the average sales price there went from $619,136 to $696,047, a rise of 12% in that 12-month period alone.<ref>{{cite news|url=http://www.nbr.co.nz/article/auckland-house-prices-continue-their-relentless-rise-dc-150592|title=Auckland house prices continue their relentless rise|work=[[National Business Review]] |date=8 January 2014|access-date=16 October 2014|archive-date=4 August 2020|archive-url=https://web.archive.org/web/20200804162450/https://www.nbr.co.nz/article/auckland-house-prices-continue-their-relentless-rise-dc-150592|url-status=dead}}</ref> In 2015, prices rose another 14%.<ref>{{cite news|url=https://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11625010|title=2016 house price hikes tipped by economist|first=Anne|last=Gibson|date=18 April 2016|via=www.nzherald.co.nz|work=[[The New Zealand Herald]] }}</ref> This made Auckland New Zealand's least affordable market and one of the most expensive cities in the world<ref>{{cite news|url=http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11271457|title= House values soar in tight Auckland property market|date=11 June 2014|work=[[The New Zealand Herald]]}}</ref> with houses costing 8 times the average income.<ref name="ReferenceC"/> 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]].<ref>[http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11628399 Home truths: City of expensive sales tops Sydney], ''The New Zealand Herald'', 26 April 2016.</ref>

As a result, more people are being priced out of the property market. Those on low incomes are hardest hit, affecting many [[Māori people|Maori]] and [[Pasifika New Zealander|Pasifika]]. New Zealand's relatively high mortgage-rates are exacerbating the problem<ref name="ReferenceA">{{cite news|url= http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=11344401|title=NZ mortgage rates: How we compare with rest of the world|work=[[The New Zealand Herald]]|date=18 October 2014}}</ref> making it difficult for young people with steady jobs to buy their first home.<ref>{{cite news|url= http://www.stuff.co.nz/dominion-post/news/9978739/Houses-too-far-from-reach|title=Houses too far from reach?|work=[[The Post (New Zealand newspaper)|The Dominion Post]]|date=26 April 2014}}</ref> According to a 2012 submission made to the Housing Affordability Inquiry,<ref>{{cite web|url=http://www.productivity.govt.nz/sites/default/files/Final%20Housing%20Affordability%20Report_0_0.pdf|title=Housing Affordability Inquiry|publisher=[[New Zealand Productivity Commission]]|access-date=16 October 2014|archive-date=2 May 2019|archive-url=https://web.archive.org/web/20190502091301/https://www.productivity.govt.nz/sites/default/files/Final%20Housing%20Affordability%20Report_0_0.pdf|url-status=dead}}</ref> escalating house prices are also impacting on many middle income groups, especially those with large families.<ref>Submission of the New Zealand Council of Trade Unions to the Productivity Commission on the Housing Affordability Inquiry, February 2012, p. 5</ref> Mortgage adviser Bruce Patten said the trend was "disturbing" and added to the gap between the "haves and have-nots".<ref>{{cite news|url=http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=11342310|title= The fading dream of a first home in city|work=[[The New Zealand Herald]]|date=15 October 2014}}</ref>

Property-analysis company [[CoreLogic]] said{{when|date=May 2021}} that 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% of purchases go to overseas-based cash buyers<ref name="nzherald.co.nz"/> – primarily Australians, Chinese, and British – although most{{quantify|date=May 2021}} economists believe that foreign investment is currently{{when|date=May 2021}} too small to have a significant effect on property prices.<ref>{{cite news|url= http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11343693 |title=Chinese investment in NZ housing tipped to rise|work=[[The New Zealand Herald]]|date=17 October 2014}}</ref>

Whether purchases are made by New Zealanders or by foreigners, it is generally those who are already well off who are buying the bulk of properties on the market. This has had a dramatic effect on home-ownership rates by Kiwis, now{{when|date=May 2021}} at its lowest level since 1951. Even as recently as 1991, 76% of New Zealand homes were occupied by their owners. By 2013, this had reduced to 63%,<ref>{{cite news|url=http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11293868|title=Why house prices are up and ownership is down|work=[[The New Zealand Herald]]|date=18 July 2014 | quote = Home ownership has plunged since 1991. Back then, 76 per cent of homes were occupied by their owners, but by last year, that was down to 63 per cent. }}</ref> indicating that more and more people are having to rent.{{citation needed|date=May 2021}} 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".<ref name="ReferenceA"/>

=== Inequality ===
{{main|Economic inequality in New Zealand
}}
[[File:State Housing in Oranga, Auckland, 1947.jpg|thumb|right |In the [[interwar period|interwar]] and [[post-war]] periods, successive governments sponsored a massive [[State housing in New Zealand|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)<ref name="NZ income gap at crisis level">{{cite news|url= http://www.stuff.co.nz/national/9182609/NZ-income-gap-at-crisis-level-author|title=NZ income gap at crisis level |work =[[Stuff (website)|Stuff]]|date=19 September 2013}}</ref> almost doubled going from $56,300 to $100,200. The average income of the poorest tenth increased by 13% from $9700 to $11,000.<ref name="Paradise for a few">{{cite news|url= http://www.nzherald.co.nz/lifestyle/news/article.cfm?c_id=6&objectid=10892133|title=Paradise for a few|work=[[The New Zealand Herald]]|date= 22 June 2013}}</ref>

[[Statistics New Zealand]], which keeps track of income disparity using the P80/20 ratio, confirms the increase in income  inequality. The 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 [[Great Recession]], 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.<ref>{{cite web|url= http://www.stats.govt.nz/browse_for_stats/snapshots-of-nz/nz-progress-indicators/Home/Social/income-inequality.aspx|title= New Zealand Progress Indicators:Income inequality|publisher=[[Statistics New Zealand]]|date=August 2014|access-date=22 December 2014}}</ref>

In 2020, the [[OECD]] gave New Zealand a [[Gini coefficient|Gini inequality coefficient]] of 0.320 or [[List of countries by income equality|25th (out of 37) in the OECD]].

=== Superannuation ===
{{Main|Welfare in New Zealand#Pensions}}
New Zealand has a universal [[superannuation]] scheme. Only people who are aged 65 years old or over, are New Zealand citizens or permanent residents and who are residing in New Zealand at the time of application are 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 superannuitants' 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.<ref>{{Cite web |title=New Zealand Superannuation and Retirement Income Act 2001 No 84 (as at 01 April 2022), Public Act – New Zealand Legislation |url=https://www.legislation.govt.nz/act/public/2001/0084/latest/whole.html |access-date=10 June 2022 |website=www.legislation.govt.nz}}</ref>

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.<ref>{{cite news|url=http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=11209088|title= National lacks courage on retirement age – Act leader|work=[[The New Zealand Herald]]|date=24 February 2014}}</ref> 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 was projected to grow by about 200,000.<ref>{{cite web|url= http://www.stats.govt.nz/browse_for_stats/people_and_communities/older_people/pop-ageing-in-nz.aspx |title=Population aging in New Zealand|publisher=[[Statistics New Zealand]]}}</ref>

This poses a significant problem for superannuation. The government gradually increased the age of eligibility from 61 to 65 between 1993 and 2001.<ref>{{cite news|url= http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10763926|title=Brian Gaynor: NZ badly behind times with age pensions|work=[[The New Zealand Herald]] |date=5 November 2011}}</ref> In that year the [[Fifth Labour Government of New Zealand|Labour Government]] of [[Helen Clark]] introduced the [[New Zealand Superannuation Fund]] (known as the "Cullen Fund" after Minister of Finance [[Michael Cullen (politician)|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 it invested within New Zealand.<ref>{{cite web|url= https://www.nzsuperfund.co.nz/sites/default/files/documents-sys/October%202014%20Monthly%20Report.pdf|title= October 2014 Monthly Report|publisher= [[New Zealand Superannuation Fund]]|access-date= 14 December 2014|archive-date= 23 January 2019|archive-url= https://web.archive.org/web/20190123054423/https://www.nzsuperfund.co.nz/sites/default/files/documents-sys/October%202014%20Monthly%20Report.pdf|url-status= dead}}</ref>

In 2007 the same Government introduced a new individual saving-scheme, known as [[KiwiSaver]]. KiwiSaver principally targets growing people's 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 of | 2014 | 30 June}} KiwiSaver had 2.3 million active members (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.<ref name="KSstats">{{cite web |url= http://www.kiwisaver.govt.nz/statistics/annual/ |access-date= 14 December 2014 |title= KiwiSaver annual statistics |publisher=[[Inland Revenue Department (New Zealand)|Inland Revenue]]}}</ref>

=== Consumption ===
{{expand section|date=May 2021}}
New Zealanders see themselves as [[First World|first-world]] [[consumer]]s with first-world tastes and habits – mitigated only slightly by the country's remoteness from main global producers.

In 2023, New Zealand's [[Final consumption expenditure|Final Consumption Expenditure]] was 199.99 billion.<ref>{{Cite web |title=World Bank Open Data |url=https://data.worldbank.org/indicator/NE.CON.TOTL.CD?end=2023&locations=NZ&start=1970&view=chart |access-date=27 March 2025 |website=World Bank Open Data}}</ref>

== 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."<ref>{{cite web|url=http://www.infrastructure.govt.nz/plan/2011implementation/2013report/nsir-oct13.pdf|title=Infrastructure 2013 National State of Infrastructure Report|publisher=National Infrastructure Unit, [[New Zealand Treasury]]|access-date=22 December 2014|date=2013}}{{Dead link|date=July 2025 |bot=InternetArchiveBot |fix-attempted=yes }}</ref> A report prepared for the Association of Consulting and Engineering New Zealand in 2020 claimed that there was an infrastructure deficit of $75{{nbsp}} billion (about one quarter of GDP), following decades of under-investment that began in the 1980s.<ref>{{cite web|url=https://www.stuff.co.nz/national/122771520/major-report-reveals-75-billion-infrastructure-deficit-warns-of-recession-risks | title=Major report reveals $75 billion infrastructure deficit, warns of recession risks| first=Joel| last=MacManus| work=[[Stuff (website)|Stuff]] | date=6 September 2020|access-date=30 May 2021}}</ref>

=== Transport ===
{{main|Transport in New Zealand}}
[[File:Wellington infrastructure.jpg|thumb|Highways, rail lines and an inter-island ferry in central Wellington]]
New Zealand's transport infrastructure is "generally well developed."<ref name="transport infrastructure">{{cite web|url=http://www.transport.govt.nz/ourwork/keystrategiesandplans/connectingnewzealand/cnzstateofinfrastructure/|title=Connecting New Zealand – State of our infrastructure|date=26 April 2018|publisher=[[Ministry of Transport]]|archive-url=https://archive.today/20141217144202/http://www.transport.govt.nz/ourwork/keystrategiesandplans/connectingnewzealand/cnzstateofinfrastructure/|archive-date=17 December 2014}}</ref>

==== Road network ====
{{main|New Zealand state highway network}}
The New Zealand state highway network consists of 11,000&nbsp;km of road, with 5981.3&nbsp;km in the [[North Island]] and 4924.4&nbsp;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&nbsp;km of local roads built and maintained by local authorities.<ref>{{cite web|url=http://www.nzta.govt.nz/network/maintaining/index.html|title=Maintaining our network|publisher=[[NZ Transport Agency]]|access-date=15 December 2014}}</ref>

==== Railway network ====
{{main|Rail transport in New Zealand}}
The railway network is owned by [[state-owned enterprise]] [[KiwiRail]] and consists of 3,898&nbsp;km of railway line, built to the [[narrow gauge railways|narrow gauge]] of {{RailGauge|1067mm}}.<ref name="transport infrastructure" /> Of this, 506&nbsp;km is [[Railway electrification system|electrified]].<ref name="transport-m2nz">{{cite web|last1=Bell|first1=Mike|title=New Zealand Transportation|url=http://www.move2nz.com/nz/nz_transport.aspx|publisher=move2nz|access-date=13 December 2016|archive-date=10 May 2017|archive-url=https://web.archive.org/web/20170510075328/http://www.move2nz.com/nz/nz_transport.aspx|url-status=dead}}</ref>

==== Airways ====
{{main|Airports in New Zealand}}
There are seven international airports and twenty-eight domestic airports.<ref name="transport infrastructure" /> [[Air New Zealand]], 52% government-owned,<ref>{{cite web|url=https://www.airnewzealand.co.nz/investor-centre-frequently-asked-questions|title=Frequently Asked Questions|language=en-NZ|access-date=12 September 2018}}</ref> is the [[national carrier]] and a [[Government-owned corporation|state owned enterprise]]. [[Airways New Zealand]], another state owned enterprise, provides air traffic control and communications.

==== Seaports ====

New Zealand has 14 international seaports.<ref name="transport infrastructure" />

=== Telecommunications ===
[[File:24 Dunedin Town Hall at the Octagon square, Dunedin, New Zealand.JPG|thumb|right|Telephone booths in [[Dunedin]]]]
{{main|Telecommunications in New Zealand}}
Present-day telecommunications in New Zealand include telephony, [[Radio in New Zealand|radio]], [[Television in New Zealand|television]], and [[Internet in New Zealand|internet]] usage. A competitive telecommunications market has seen mobile prices drop to some of the lowest in the OECD.<ref>{{cite web|url=http://www.comcom.govt.nz/regulated-industries/telecommunications/monitoring-reports-and-studies/monitoring-reports/|title= 2013 Annual Telecommunications Monitoring Report|publisher=[[Commerce Commission]]|date=21 May 2014|access-date=22 December 2014}}</ref> 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 New Zealand|Spark]]). In the mobile sector, there are three operators: Spark, [[One NZ]] and [[2degrees]].

==== Internet ====
{{main|Internet in New Zealand}}
New Zealand has a high rate of internet use. {{As of|2014|10}}, 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.<ref name=stats>{{cite journal| url= http://www.stats.govt.nz/browse_for_stats/industry_sectors/information_technology_and_communications/ISPSurvey_HOTP2014.aspx| title=Internet Service Provider Survey: 2014| journal=Internet Service Provider Survey| date=14 October 2014| publisher=[[Statistics New Zealand]]| access-date = 14 October 2014|issn=1178-0509}}</ref>

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&nbsp;Mbit/s download and 50&nbsp;Mbit/s upload to 75% of New Zealanders by 2019.<ref>{{cite web|title=Ultra-Fast Broadband Initiative|url=http://www.med.govt.nz/sectors-industries/technology-communication/fast-broadband/ultra-fast-broadband-initiative|publisher=Ministry of Business, Innovation and Employment|access-date=6 March 2014}}</ref> In total, 1,340,000 households in 26 towns and cities will be connected.

Gigabit internet (1000&nbsp;Mbit/s download speeds) was made available to the entire Ultra-Fast Broadband (UFB) footprint on 1 October 2016, in an announcement from Chorus.<ref>{{cite web|url=https://www.chorus.co.nz/chorus-launches-gigabit-wholesale-broadband-services-nationwide|title=Chorus launches gigabit wholesale broadband services nationwide {{!}} Chorus|website=www.chorus.co.nz|access-date=30 October 2016|url-status=dead|archive-url=https://web.archive.org/web/20161030201700/https://www.chorus.co.nz/chorus-launches-gigabit-wholesale-broadband-services-nationwide|archive-date=30 October 2016}}</ref>

A$300 million Rural Broadband Initiative (RBI) has also been introduced by the Government, with the aim to bring broadband of at least 5&nbsp;Mbit/s to 86% of rural customers by 2016.<ref name="mbie-rbi">{{cite web|title=Rural Broadband Initiative contracts|url=http://www.med.govt.nz/sectors-industries/technology-communication/communications/broadband-policy/rural-broadband-initiative/rural-broadband-initiative-contracts|publisher=Ministry of Business, Innovation and Employment}}</ref>

=== Energy ===
{{main|Energy in New Zealand}}
From 1995 to 2013, the energy intensity of the economy per unit of GDP declined by 25 percent.<ref name="Energy2014">{{cite web| url=http://www.med.govt.nz/sectors-industries/energy/energy-modelling/publications/energy-in-new-zealand| title=Energy in New Zealand|publisher=MBIE| date=July 2014| access-date=3 August 2014}}</ref> A contributing factor is the growth of relatively less energy-intensive service industries.<ref>{{cite web|url= http://www.stats.govt.nz/browse_for_stats/environment/sustainable_development/key-findings-2010/efficiency-how-efficiently-we-using-resources.aspx#energy|title=Key Findings on New Zealand's Progress Using a Sustainable Development Approach|work=[[Statistics New Zealand]]|year=2010|access-date=21 April 2012}}</ref> 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).<ref>{{cite journal |last1=Overland |first1=Indra |last2=Bazilian |first2=Morgan |last3=Ilimbek Uulu |first3=Talgat |last4=Vakulchuk |first4=Roman |last5=Westphal |first5=Kirsten |title=The GeGaLo index: Geopolitical gains and losses after energy transition |journal=Energy Strategy Reviews |date=1 November 2019 |volume=26 |article-number=100406 |doi=10.1016/j.esr.2019.100406 |doi-access=free |bibcode=2019EneSR..2600406O |hdl=11250/2634876 |hdl-access=free }}</ref>

==== Electricity ====
{{main|New Zealand electricity market|Electricity sector in New Zealand}}
The [[electricity market]] is regulated by the Electricity Industry Participation Code administered by the [[Electricity Authority (New Zealand)|Electricity Authority]] (EA).<ref>{{cite web|title=The Code|url=https://www.ea.govt.nz/code-and-compliance/the-code/|publisher=Electricity Authority / New Zealand government|access-date=11 November 2016}}</ref> The electricity sector uses mainly [[renewable energy|renewable energy sources]] such as [[Hydroelectricity|hydropower]], [[geothermal energy|geothermal power]] and increasingly [[wind energy]].

The 83% share of renewable energy sources<ref name="nzcpe">{{Cite web|title=Climate explained: why switching to electric transport makes sense even if electricity is not fully renewable|url=https://blog.planetaryecology.org/2020/05/19/climate-explained-why-switching-to-electric-transport-makes-sense-even-if-electricity-is-not-fully-renewable/|last=nzcpe|date=18 May 2020|website=Planetary Ecology|language=en-GB|access-date=20 May 2020}}</ref> makes New Zealand one of the most [[Sustainable energy|sustainable]] economies in terms of electricity generation;<ref>{{cite web|title=New Zealand Commits to 90% Renewable Electricity by 2025|date=26 September 2007 |url=http://www.renewableenergyworld.com/articles/2007/09/new-zealand-commits-to-90-renewable-electricity-by-2025-50075.html|publisher=RenewableEnergyWorld.com|access-date=11 November 2016}}</ref> in terms of total energy consumption in the New Zealand economy, this represents the 30% that comes from renewable sources.<ref>{{cite web | title=MARKETS – EVIDENCE AND INSIGHTS: ENERGY IN NEW ZEALAND 2023 | url=https://www.mbie.govt.nz/dmsdocument/27344-energy-in-new-zealand-2023-pdf | website=Ministry of Business, Innovation and Employment (MBIE) | access-date=2025-06-11}}</ref> 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.

===Water===
{{main|Water supply and sanitation in New Zealand}}
As of 2021, almost all of the three waters assets (drinking water, stormwater and wastewater) are owned by local councils and territorial authorities. There are currently 67 different asset-owning organisations in total.<ref name="dia">{{cite web| url=https://www.dia.govt.nz/Three-Waters-Reform-Programme| title=Central/Local Government Three Waters Reform Programme | publisher=Te Tari Taiwhenua – Department of Internal Affairs| access-date=30 May 2021}}</ref>

The challenges for local government include funding infrastructure deficits and preparing for large re-investments that are estimated to require $110{{nbsp}}billion over the next 30 to 40 years.<ref>{{cite news| url=https://www.stuff.co.nz/national/politics/300262242/government-thinks-110-billion-needed-to-fix-broken-water-system| title= Government thinks $110 billion needed to fix broken water system| work=[[Stuff (website)|Stuff]] | first=Thomas | last=Coughlan| date=26 March 2021|access-date=30 May 2021}}</ref> There are also significant challenges in meeting statutory requirements for the safety of drinking water, and the environmental expectations for management of stormwater and wastewater. [[Climate change adaptation]], and providing for population growth add to these challenges.

== Trade ==
{{See also|List of the largest trading partners of New Zealand}}
As of 2024, New Zealand largest trading partners are [[China]], [[Australia]], the [[European Union]], the [[United States]] and [[Japan]]. Together, these five partners account for 63% of New Zealand's two-way trade with China alone accounting for over 30% of two-way trade.<ref>{{Cite web |title=New Zealand Trade {{!}} WITS Data |url=https://wits.worldbank.org/CountrySnapshot/en/NZL |access-date=8 September 2024 |website=wits.worldbank.org}}</ref> Total annual exports are worth over US $44 billion well imports are worth over US $49 billion. [[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 ===
{{main|New Zealand free trade agreements}}
[[File:Map_of_countries_with_which_New_Zealand_has_free_trade_agreements.svg|thumb|300px|right|{{legend-table|lang=en|#ff0000|New Zealand|#00bf00ff|Free trade agreements in force|#ffcc00ff|Free trade agreements concluded but not in force}}]]

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.<ref name="FTA">{{cite web|url=http://mfat.govt.nz/Trade-and-Economic-Relations/2-Trade-Relationships-and-Agreements/index.php|title=Trade Relationships and Agreements|publisher=[[Ministry of Foreign Affairs and Trade (New Zealand)]]|date=21 August 2014|access-date=10 December 2014|archive-date=4 December 2015|archive-url=https://web.archive.org/web/20151204203433/http://www.mfat.govt.nz/Trade-and-Economic-Relations/2-Trade-Relationships-and-Agreements/index.php|url-status=dead}}</ref> 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.<ref name="FTA" />

=== China ===
{{See also|China–New Zealand relations#Economic relations|New Zealand–China Free Trade Agreement}}

China is New Zealand's largest trading partner, buying primarily meat, dairy products and pine logs. In 2013, trade between New Zealand and China was worth NZ$16.8 billion.<ref name="trading partners">{{cite web|url= http://www.stats.govt.nz/browse_for_stats/snapshots-of-nz/nz-in-profile-2014/main-trading-partners.aspx|title= Main trading partners, 2013|publisher=[[Statistics New Zealand]]|access-date= 3 December 2014}}</ref> 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.<ref>{{cite news|url=http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11246207 |title=Trade surplus widens as dairy drives exports into China|work=[[The New Zealand Herald]]|date=29 April 2014}}</ref> 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.<ref>{{cite news|url=http://www.nbr.co.nz/article/china-overtakes-australia-nzs-biggest-export-market-buying-more-meat-dairy-logs-bd-139242|title=China overtakes Australia as NZ's biggest export market|work=[[National Business Review]]|date=26 April 2013|access-date=13 December 2014|archive-date=25 February 2021|archive-url=https://web.archive.org/web/20210225093622/https://www.nbr.co.nz/article/china-overtakes-australia-nzs-biggest-export-market-buying-more-meat-dairy-logs-bd-139242|url-status=dead}}</ref>

=== Australia ===
{{See also|Australia–New Zealand relations#Trade|Closer Economic Relations}}

[[File:Australia New Zealand Closer Economic Relations Trade Agreement 1983 - signed by Laurie Francis & Lionel Bowen (13272074365 cropped).jpg|left|thumb|Australia New Zealand Closer Economic Relations Trade Agreement 28 March 1983 – signed by Laurie Francis & Lionel Brown]]

Australia was New Zealand's largest bilateral trading partner in 2013, when trade between the two countries was worth NZ$25.6 billion,<ref name="trading partners" /> and before China overtook Australia. 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.<ref name="Principal Trading Partners">{{cite web|url=http://www.treasury.govt.nz/economy/overview/2012/22.htm|title=Principal Trading Partners|publisher=[[New Zealand Treasury]]|access-date=23 October 2014|archive-url=https://web.archive.org/web/20141023223647/http://www.treasury.govt.nz/economy/overview/2012/22.htm|archive-date=23 October 2014|url-status=dead}}</ref>

=== European Union ===
{{See also|New Zealand-European Union relations#Trade}}

The European Union is New Zealand's third largest trading partner. A growing number of New Zealand companies use the United Kingdom as a base to supply their products to the European market.<ref>{{cite web|url=https://www.nzte.govt.nz/en/export/export-markets/europe/united-kingdom/ |title=United Kingdom|publisher=[[New Zealand Trade and Enterprise]]}}</ref> However trade with the European Union is declining as demand from Asia continues to grow. The EU takes only 8% of New Zealand exports but provides around 12% of imports.<ref name="Principal Trading Partners"/>

In July 2014, negotiations on the Partnership Agreement on Relations and Cooperation (PARC) between New Zealand and the European Union were concluded.<ref>{{cite web|url=http://www.mfat.govt.nz/Media-and-publications/Features/794-Joint-Statement-EU-NZ.php|title=Joint statement on EU-New Zealand Partnership Agreement|publisher=[[Ministry of Foreign Affairs and Trade (New Zealand)]]}}</ref> 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.<ref>{{cite web|url=http://europa.eu/rapid/press-release_STATEMENT-14-83_en.htm|title=Joint declaration by President Van Rompuy, President Barroso and Prime Minister Key on deepening the partnership between New Zealand and the European Union|location=The Hague|date=25 March 2014}}</ref> In 2024 a [[New Zealand–European Union relations#EU-NZ free trade agreement|New Zealand-European Union free trade agreement]] entered into force.

=== United States ===
{{See also|New Zealand–United States relations#Trade}}

The United States was New Zealand's third largest trading partner in 2013, when bilateral trade between the two countries was valued at NZ$11.8 billion,<ref name="trading partners" /> and before it was overtaken by the EU. 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.<ref>{{cite web|url=https://www.nzte.govt.nz/en/export/export-markets/north-america/united-states/|title=The USA|date=20 December 2013 |publisher=[[New Zealand Trade and Enterprise]]}}</ref> 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".<ref>{{cite web|url=http://www.mfat.govt.nz/Countries/North-America/United-States.php|title=United States of America|publisher=[[Ministry of Foreign Affairs and Trade (New Zealand)]]}}</ref> This common background has not translated into a free trade agreement between the two countries.<ref>{{cite news|url=http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10633801|title=Why bother with a US FTA?|work=[[The New Zealand Herald]]|date=23 March 2010}}</ref>

=== Japan, Korea 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. Korea, as New Zealand's fifth largest trading partner, is also one of important sources of importation of New Zealand and considered as important export market for New Zealand.

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.<ref name="Principal Trading Partners"/> 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 [[Trans-Pacific Strategic Economic Partnership|P4 agreement]].

=== Relationship with Pacific Islands ===
{{See also|Pacific Agreement on Closer Economic Relations|PACER Plus}}

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.<ref>{{cite web|url=https://www.nzte.govt.nz/en/export/export-markets/australia-pacific/pacific-islands/|title=Pacific Islands|date=20 December 2013 |publisher=[[New Zealand Trade and Enterprise]]}}</ref> 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.<ref>{{cite web|url=http://mfat.govt.nz/Foreign-Relations/Pacific/index.php|title=Pacific|publisher=[[Ministry of Foreign Affairs and Trade (New Zealand)]]|url-status=dead|archive-url=https://web.archive.org/web/20141027154233/http://www.mfat.govt.nz/Foreign-Relations/Pacific/index.php|archive-date=27 October 2014}}</ref>

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).<ref>{{cite web|url=http://www.aid.govt.nz/about-aid-programme|title=About the aid programme|publisher=[[Ministry of Foreign Affairs and Trade (New Zealand)]]|access-date=26 October 2014|archive-date=7 October 2015|archive-url=https://web.archive.org/web/20151007172032/http://www.aid.govt.nz/about-aid-programme|url-status=dead}}</ref>

== Foreign investment ==
New Zealand welcomes and encourages foreign investment, which is overseen by the [[Overseas Investment Office]]. In 2014 foreign direct investment totalled NZ$107.69 billion.<ref name="debt investment" /> Between 1989 and 2013, foreign investment increased from NZ$9.7 billion to NZ$101.4 billion – a change of over 1,000%.<ref name="scoop.co.nz">{{cite web|url=http://www.scoop.co.nz/stories/PO1401/S00011/who-owns-nz-foreign-control-key-facts-updated.htm|title=Who Owns NZ? Foreign Control Key Facts Updated|publisher=[[Scoop.co.nz]]|date=7 January 2014}}</ref> Between 1989 and 2007, foreign ownership of the New Zealand sharemarket went from 19% to 41% but has since dropped back to 33%. {{citation needed|date=March 2023}}

In 2014, around 7% of all agriculturally productive land in New Zealand was foreign-owned.<ref name="SALE">{{cite news |url= http://www.nzherald.co.nz/section/story.cfm?c_id=280&objectid=10419011 |first=Matt |last=McCarten |title=Foreign owners muscle in as New Zealand sells off all its assets |work=[[The New Zealand Herald]]|date= 14 January 2007}}</ref> In 2011, economist Bill Rosenberg claimed that the figure was closer to 9% when including foreign ownership of forestry land.<ref>{{cite web|url=http://www.converge.org.nz/watchdog/29/02.htm|title=Overseas Ownership of Land|author=Bill Rosenberg}}</ref> In March 2013, the financial sector, which includes the "big-four" Australian-owned banks, was worth NZ$39.3 billion – the largest share of the NZ$101.4 billion of foreign ownership of New Zealand companies at the time.<ref name="scoop.co.nz"/>

=== Impact ===
Between 1997 and 2014, foreign investors made NZ$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.<ref name="SALE" /> It is also argued that growing foreign ownership has done nothing to reduce New Zealand's foreign debt. In 1984, private and public foreign debt was NZ$16 billion (NZ$50 billion in March 2013 dollars), which was less than half New Zealand's GDP at the time. By March 2013, total foreign debt stood at NZ$251 billion, well over 100% of New Zealand's GDP.<ref name="scoop.co.nz"/>

At the Singapore International Energy Week (SIEW) conference, leaders from New Zealand and Cambodia highlighted the challenge of maintaining public support for clean energy transitions due to rising electricity costs. They emphasised the importance of balancing affordability with sustainability to ensure long-term success.<ref>{{Cite news |date=23 October 2024|title=New Zealand, Cambodia cite political risks due to high energy transition costs |newspaper=Reuters|url=https://www.reuters.com/business/energy/new-zealand-cambodia-cite-political-risks-due-high-energy-transition-costs-2024-10-21/  |access-date=23 October 2024}}</ref>

==Data==
[[File:Real Journeys Milford Sound Bus.jpg|thumb|right|Tourism, like here on the [[Milford Sound]] (special bus with viewing gallery), is a major export earner for New Zealand.]]The following table shows the main economic indicators in 1980–2022 (with IMF staff estimates in 2023–2026) from the May 2023 IMF World Economic Outlook report.<ref>{{cite web |url=https://www.imf.org/en/Publications/WEO/weo-database/2024/April/weo-report?c=196,&s=NGDP_RPCH,NGDPD,PPPGDP,NGDPDPC,PPPPC,PCPIPCH,LUR,GGXWDG_NGDP,&sy=1980&ey=2026&ssm=0&scsm=1&scc=0&ssd=1&ssc=0&sic=0&sort=country&ds=.&br=1 |title=Report for Selected Countries and Subjects: April 2024 |work=World Economic Outlook Database |publisher=[[International Monetary Fund]] (IMF) }}</ref> Inflation below 2% is green.

{{sticky header}}
{| class="wikitable sortable sticky-header-multi" style="text-align:center;"
! rowspan=2|Year
! GDP<br><small>(bil. US$)</small>
! GDP per capita<br><small>(US$)</small>
! GDP<br><small>(bil. US$)</small>
! GDP per capita<br><small>(US$)</small>
! rowspan=2|GDP growth<br><small>(real)</small>
! rowspan=2|Inflation rate<br><small>(%)</small>
! rowspan=2|Unemployment<br><small>(%)</small>
! rowspan=2|Government debt<br>as % of GDP
|-
! colspan=2|(PPP)
! colspan=2|(Nominal)
|-
| 1980
| 28.5
| 9,176.3
| 22.6
| 7,257.5
| {{Increase}}1.0%
| {{IncreaseNegative}}17.1%
| 4.0%
| n/a
|-
| 1981
| {{Increase}}32.1
| {{Increase}}10,287.7
| {{Increase}}23.5
| {{Increase}}7,514.1
| {{Increase}}3.0%
| {{IncreaseNegative}}15.5%
| {{DecreasePositive}}3.9%
| n/a
|-
| 1982
| {{Increase}}35.1
| {{Increase}}11,150.8
| {{Decrease}}23.2
| {{Decrease}}7,381.3
| {{Increase}}2.9%
| {{IncreaseNegative}}16.1%
| {{IncreaseNegative}}4.4%
| n/a
|-
| 1983
| {{Increase}}36.4
| {{Increase}}11,463.5
| {{Decrease}}22.5
| {{Decrease}}7,074.6
| {{Decrease}}-0.1%
| {{IncreaseNegative}}7.4%
| {{IncreaseNegative}}6.2%
| n/a
|-
| 1984
|{{Increase}} 40.4
|{{Increase}} 12,565.3
|{{Decrease}} 22.4
|{{Decrease}} 6,970.9
|{{Increase}} 6.9%
|{{IncreaseNegative}} 6.1%
|{{IncreaseNegative}} 7.2%
| n/a
|-
| 1985
| {{Increase}}42.1
| {{Increase}}12,993.8
| {{Decrease}}22.5
| {{Decrease}}6,953.6
| {{Increase}}1.2%
| {{IncreaseNegative}}15.4%
| {{DecreasePositive}}3.9%
| 64.1%
|-
| 1986
|{{Increase}} 43.8
|{{Increase}} 13,373.6
|{{Increase}} 27.4
|{{Increase}} 8,385.8
|{{Increase}} 1.8%
|{{IncreaseNegative}} 13.2%
|{{IncreaseNegative}} 4.2%
|{{IncreaseNegative}} 68.5%
|-
| 1987
|{{Increase}} 45.9
|{{Increase}} 13,915.0
|{{Increase}} 37.0
|{{Increase}} 11,205.9
|{{Increase}} 2.4%
|{{IncreaseNegative}} 15.8%
|{{Steady}} 4.2%
|{{DecreasePositive}} 62.9%
|-
| 1988
|{{Increase}} 47.8
|{{Increase}} 14,353.2
|{{Increase}} 45.5
|{{Increase}} 13,663.6
|{{Increase}} 0.6%
|{{IncreaseNegative}} 6.4%
|{{IncreaseNegative}} 5.8%
|{{DecreasePositive}} 54.7%
|-
| 1989
|{{Increase}} 49.9
|{{Increase}} 14,826.9
|{{Decrease}} 44.0
|{{Decrease}} 13,079.0
|{{Increase}} 0.4%
|{{IncreaseNegative}} 5.7%
|{{IncreaseNegative}} 7.3%
|{{IncreaseNegative}} 55.0%
|-
| 1990
|{{Increase}} 51.8
|{{Increase}} 15,204.9
|{{Increase}} 45.8
|{{Increase}} 13,447.6
|{{Steady}} 0.0%
|{{IncreaseNegative}} 6.1%
|{{IncreaseNegative}} 8.0%
|{{IncreaseNegative}} 55.4%
|-
| 1991
|{{Increase}} 52.8
|{{Decrease}} 15,111.8
|{{Decrease}} 43.4
|{{Decrease}} 12,424.8
|{{Decrease}} -1.3%
|{{IncreaseNegative}} 2.6%
|{{IncreaseNegative}} 10.6%
|{{IncreaseNegative}} 58.0%
|-
| 1992
|{{Increase}} 54.4
|{{Increase}} 15,401.1
|{{Decrease}} 41.5
|{{Decrease}} 11,752.0
|{{Increase}} 0.7%
|{{Increase}} 1.0%
|{{IncreaseNegative}} 10.7%
|{{IncreaseNegative}} 58.7%
|-
| 1993
|{{Increase}} 58.6
|{{Increase}} 16,401.4
|{{Increase}} 44.8
|{{Increase}} 12,537.7
|{{Increase}} 5.2%
|{{Increase}} 1.3%
|{{DecreasePositive}} 9.8%
|{{DecreasePositive}} 54.6%
|-
| 1994
|{{Increase}} 63.2
|{{Increase}} 17,452.4
|{{Increase}} 52.9
|{{Increase}} 14,612.4
|{{Increase}} 5.6%
|{{Increase}} 1.7%
|{{DecreasePositive}} 8.4%
|{{DecreasePositive}} 48.9%
|-
| 1995
|{{Increase}} 67.7
|{{Increase}} 18,414.5
|{{Increase}} 62.2
|{{Increase}} 16,932.7
|{{Increase}} 4.9%
|{{IncreaseNegative}} 3.8%
|{{DecreasePositive}} 6.5%
|{{DecreasePositive}} 43.5%
|-
| 1996
|{{Increase}} 71.7
|{{Increase}} 19,212.1
|{{Increase}} 69.1
|{{Increase}} 18,506.4
|{{Increase}} 4.1%
|{{Increase}} 2.3%
|{{DecreasePositive}} 6.3%
|{{DecreasePositive}} 37.3%
|-
| 1997
|{{Increase}} 74.8
|{{Increase}} 19,763.8
|{{Decrease}} 68.9
|{{Decrease}} 18,206.2
|{{Increase}} 2.4%
|{{Increase}} 1.2%
|{{IncreaseNegative}} 6.9%
|{{DecreasePositive}} 34.6%
|-
| 1998
|{{Increase}} 75.9
|{{Increase}} 19,893.4
|{{Decrease}} 56.8
|{{Decrease}} 14,889.8
|{{Increase}} 0.4%
|{{Increase}} 1.3%
|{{IncreaseNegative}} 7.7%
|{{DecreasePositive}} 34.5%
|-
| 1999
|{{Increase}} 80.4
|{{Increase}} 20,961.2
|{{Increase}} 58.9
|{{Increase}} 15,348.8
|{{Increase}} 4.5%
|{{Increase}} -0.1%
|{{DecreasePositive}} 7.1%
|{{DecreasePositive}} 32.0%
|-
| 2000
|{{Increase}} 85.7
|{{Increase}} 22,207.2
|{{Decrease}} 54.1
|{{Decrease}} 14,021.9
|{{Increase}} 4.2%
|{{IncreaseNegative}} 2.6%
|{{DecreasePositive}} 6.2%
|{{DecreasePositive}} 30.0%
|-
| 2001
|{{Increase}} 89.9
|{{Increase}} 23,121.0
|{{Decrease}} 53.1
|{{Decrease}} 13,669.3
|{{Increase}} 2.5%
|{{IncreaseNegative}} 2.6%
|{{DecreasePositive}} 5.5%
|{{DecreasePositive}} 28.2%
|-
| 2002
|{{Increase}} 95.6
|{{Increase}} 24,183.4
|{{Increase}} 62.1
|{{Increase}} 15,706.7
|{{Increase}} 4.7%
|{{IncreaseNegative}} 2.7%
|{{DecreasePositive}} 5.3%
|{{DecreasePositive}} 26.4%
|-
| 2003
|{{Increase}} 101.8
|{{Increase}} 25,263.5
|{{Increase}} 82.4
|{{Increase}} 20,460.3
|{{Increase}} 4.4%
|{{Increase}} 1.8%
|{{DecreasePositive}} 4.8%
|{{DecreasePositive}} 24.7%
|-
| 2004
|{{Increase}} 109.6
|{{Increase}} 26,793.4
|{{Increase}} 101.6
|{{Increase}} 24,848.8
|{{Increase}} 4.8%
|{{IncreaseNegative}} 2.3%
|{{DecreasePositive}} 4.0%
|{{DecreasePositive}} 22.5%
|-
| 2005
|{{Increase}} 116.6
|{{Increase}} 28,196.4
|{{Increase}} 113.3
|{{Increase}} 27,385.5
|{{Increase}} 3.2%
|{{IncreaseNegative}} 3.0%
|{{DecreasePositive}} 3.8%
|{{DecreasePositive}} 20.8%
|-
| 2006
|{{Increase}} 123.6
|{{Increase}} 29,531.6
|{{Decrease}} 109.7
|{{Decrease}} 26,219.9
|{{Increase}} 2.8%
|{{IncreaseNegative}} 3.4%
|{{IncreaseNegative}} 3.9%
|{{DecreasePositive}} 18.4%
|-
| 2007
|{{Increase}} 131.4
|{{Increase}} 31,091.1
|{{Increase}} 134.9
|{{Increase}} 31,914.3
|{{Increase}} 3.5%
|{{IncreaseNegative}} 2.4%
|{{DecreasePositive}} 3.6%
|{{DecreasePositive}} 16.3%
|-
| 2008
|{{Increase}} 133.5
|{{Increase}} 31,311.6
|{{Increase}} 135.4
|{{Decrease}} 31,762.9
|{{Decrease}} -0.4%
|{{IncreaseNegative}} 4.0%
|{{IncreaseNegative}} 4.0%
|{{IncreaseNegative}} 19.0%
|-
| 2009
|{{Decrease}} 132.8
|{{Decrease}} 30,843.0
|{{Decrease}} 121.7
|{{Decrease}} 28,270.4
|{{Decrease}} -1.1%
|{{IncreaseNegative}} 2.1%
|{{IncreaseNegative}} 5.9%
|{{IncreaseNegative}} 24.3%
|-
| 2010
|{{Increase}} 136.7
|{{Increase}} 31,402.2
|{{Increase}} 145.4
|{{Increase}} 33,393.0
|{{Increase}} 1.7%
|{{IncreaseNegative}} 2.3%
|{{IncreaseNegative}} 6.2%
|{{IncreaseNegative}} 29.7%
|-
| 2011
|{{Increase}} 142.0
|{{Increase}} 32,376.0
|{{Increase}} 166.9
|{{Increase}} 38,061.5
|{{Increase}} 1.8%
|{{IncreaseNegative}} 4.0%
|{{DecreasePositive}} 6.1%
|{{IncreaseNegative}} 34.7%
|-
| 2012
|{{Increase}} 144.4
|{{Increase}} 32,733.7
|{{Increase}} 175.0
|{{Increase}} 39,683.6
|{{Increase}} 2.5%
|{{Increase}} 1.1%
|{{IncreaseNegative}} 6.5%
|{{IncreaseNegative}} 35.7%
|-
| 2013
|{{Increase}} 157.7
|{{Increase}} 35,467.7
|{{Increase}} 187.1
|{{Increase}} 42,081.3
|{{Increase}} 2.3%
|{{Increase}} 1.1%
|{{DecreasePositive}} 5.8%
|{{DecreasePositive}} 34.6%
|-
| 2014
|{{Increase}} 167.2
|{{Increase}} 36,995.9
|{{Increase}} 200.2
|{{Increase}} 44,284.7
|{{Increase}} 3.8%
|{{Increase}} 1.2%
|{{DecreasePositive}} 5.4%
|{{DecreasePositive}} 34.2%
|-
| 2015
|{{Increase}} 170.7
|{{Decrease}} 36,995.3
|{{Decrease}} 176.3
|{{Decrease}} 38,224.6
|{{Increase}} 3.6%
|{{Increase}} 0.3%
|{{Steady}} 5.4%
|{{Steady}} 34.2%
|-
| 2016
|{{Increase}} 185.1
|{{Increase}} 39,254.6
|{{Increase}} 185.9
|{{Increase}} 39,415.0
|{{Increase}} 3.9%
|{{Increase}} 0.6%
|{{DecreasePositive}} 5.2%
|{{DecreasePositive}} 33.4%
|-
| 2017
|{{Increase}} 197.1
|{{Increase}} 40,932.7
|{{Increase}} 203.6
|{{Increase}} 42,290.0
|{{Increase}} 3.3%
|{{Increase}} 1.9%
|{{DecreasePositive}} 4.8%
|{{DecreasePositive}} 31.1%
|-
| 2018
|{{Increase}} 208.7
|{{Increase}} 42,564.4
|{{Increase}} 209.6
|{{Increase}} 42,757.1
|{{Increase}} 3.5%
|{{Increase}} 1.6%
|{{DecreasePositive}} 4.3%
|{{DecreasePositive}} 28.1%
|-
| 2019
|{{Increase}} 218.7
|{{Increase}} 43,864.4
|{{Increase}} 210.8
|{{Decrease}} 42,274.2
|{{Increase}} 3.1%
|{{Increase}} 1.6%
|{{DecreasePositive}} 4.1%
|{{IncreaseNegative}} 31.8%
|-
| 2020
|{{Decrease}} 218.5
|{{Decrease}} 42,970.5
|{{Decrease}} 210.3
|{{Decrease}} 41,341.1
|{{Decrease}} -1.4%
|{{IncreasePositive}} 1.7%
|{{IncreaseNegative}} 4.6%
|{{IncreaseNegative}} 43.3%
|-
| 2021
|{{Increase}} 241.4
|{{Increase}} 47,235.7
|{{Increase}} 249.7
|{{Increase}} 48,861.5
|{{Increase}} 5.6%
|{{IncreaseNegative}} 3.9%
|{{DecreasePositive}} 3.8%
|{{IncreaseNegative}} 47.5%
|-
| 2022
|{{Increase}} 264.6
|{{Increase}} 51,622.6
|{{Decrease}} 242.4
|{{Decrease}} 47,284.1
|{{Increase}} 2.4%
|{{IncreaseNegative}} 7.2%
|{{DecreasePositive}} 3.3%
|{{DecreasePositive}} 47.2%
|-
!colspan=9 style="background:#FFFFEE;"|Projected
|-style="background:#FFFFEE;"
| 2023
|{{Increase}} 276.0
|{{Increase}} 52,676.5
|{{Increase}} 249.0
|{{Increase}} 47,536.7
|{{Increase}} 0.6%
|{{IncreaseNegative}} 5.7%
|{{IncreaseNegative}} 3.7%
|{{DecreasePositive}} 45.9%
|-style="background:#FFFFEE;"
| 2024
|{{Increase}} 285.6
|{{Increase}} 53,797.3
|{{Increase}} 257.6
|{{Increase}} 48,530.8
|{{Increase}} 1.0%
|{{IncreaseNegative}} 3.1%
|{{IncreaseNegative}} 5.0%
|{{IncreaseNegative}} 47.4%
|-style="background:#FFFFEE;"
| 2025
|{{Increase}} 296.3
|{{Increase}} 55,145.9
|{{Increase}} 266.8
|{{Increase}} 49,644.8
|{{Increase}} 2.0%
|{{IncreaseNegative}} 2.5%
|{{IncreaseNegative}} 5.4%
|{{IncreaseNegative}} 48.7%
|-style="background:#FFFFEE;"
| 2026
|{{Increase}} 309.2
|{{Increase}} 56,843.4
|{{Increase}} 277.7
|{{Increase}} 51,049.1
|{{Increase}} 2.4%
|{{IncreaseNegative}} 2.4%
|{{IncreaseNegative}} 5.2%
|{{IncreaseNegative}} 48.8%
|}

; 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:
* Consumption: 34.88 [[TWh]] (2001) / '''37.39 [[TWh]] (2006)'''
* Production: 38.39 [[TWh]] (2004) / '''42.06 [[TWh]] (2006)'''
* Exports: '''0 [[kWh]] (2006)'''
* Imports: '''0 [[kWh]] (2006)'''
; Electricity – production by source:<ref name="nzcpe"/><ref>{{cite web |url=http://www.ea.govt.nz/document/12098/download/about-us/documents-publications/ |title=Electricity in New Zealand|publisher=NZ Electricity Authority/Te Mana Hiko |date=November 2010 |access-date=19 January 2011 |url-status=dead |archive-url=https://web.archive.org/web/20110102230704/http://www.ea.govt.nz/document/12098/download/about-us/documents-publications/ |archive-date=2 January 2011}}</ref>
* Hydro: '''60% (2020)'''
* Geothermal: '''17% (2020)'''
* Wind: '''5% (2020)'''
* Fossil fuel: '''17% (2020)'''
* Nuclear: '''0% (2020)'''
* Other: '''3.4% (2010)'''
; Oil:
* Production: {{convert|42160|oilbbl|m3}} 2001 / '''{{convert|25880|oilbbl|m3}} 2006'''
* Consumption: {{convert|132700|oilbbl|m3}} 2001 / '''{{convert|156000|oilbbl|m3}} 2006'''
* Exports: {{convert|30220|oilbbl|m3}} 2001 / '''{{convert|15720|oilbbl|m3}} 2004'''
* Imports: {{convert|119700|oilbbl|m3}} 2001 / '''{{convert|140900|oilbbl|m3}} 2004'''
* Proven reserves: '''{{convert|89.62|Moilbbl|m3}} January 2002'''
; [[Exchange rate]]s: ''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)

==See also==
{{Portal|New Zealand|Economics}}
* [[Agriculture in New Zealand]]
* [[Economy of Oceania]]
* [[Energy in New Zealand]]
* [[History of the banking sector in New Zealand]]
** [[New Zealand electricity market]]
** [[Oil and gas industry in New Zealand]]
* [[Foreign relations of New Zealand#Trade|Foreign trade of New Zealand]]
* [[Median household income in Australia and New Zealand]]
* [[Ministry of Business, Innovation and Employment]]
* [[Ngāi Tahu Holdings|Ngai Tahu holdings]] and [[Ngāi Tahu#Trading enterprise|Ngāi Tahu trading enterprises]]
* [[Reserve Bank of New Zealand]]
* [[Telecommunications in New Zealand]]

==References==
{{Reflist}}

==Further reading==
{{refbegin |30em}}
* {{Cite journal |last=Dalziel |first=P. |year=2002 |title=New Zealand's Economic Reforms: An assessment |journal=Review of Political Economy |volume=14 |issue=1 |pages=31–45 |doi=10.1080/09538250120102750|citeseerx=10.1.1.512.8999 |s2cid=154808716 }}
* {{Cite journal |last=Easton |first=Bryan   | author-link = Brian_Easton (economist)|year=1994 |title=Economic and other ideas behind the New Zealand reforms |journal=Oxford Review of Economic Policy |volume=10 |issue=3 |pages=78–94 |doi=10.1093/oxrep/10.3.78}}
* {{cite book
  | last        = Easton
  | first       = Brian
  | author-link = Brian_Easton (economist)
  | title       = In Stormy Seas: The Post-war New Zealand Economy
  | publisher   = Bridget Williams Books
  | date        = 1997
  | location    = Wellington
  | isbn        = 9781877133084
}}
* {{Cite journal |last1=Evans |first1=L. |last2=Grimes |first2=A. |last3=Bryce |first3=W. |last4=Teece |first4=D. |year=1996 |title=Economic Reform in New Zealand 1984–95: The Pursuit of Efficiency |journal=Journal of Economic Literature |volume=34 |issue=4 |pages=1856–902 }}
* {{cite book|last1=Frezza|first1=William|title=New Zealand's Far-Reaching Reforms: A Case Study on How to Save Democracy from Itself|date=July 2015|publisher=[[Universidad Francisco Marroquín]] (The Antigua Forum)|isbn=978-9929-602-41-0}}<!-- ISBN does not render, but it is listed on the book title page -->
* {{cite book
  | last   = Gould
  | first  = John
  | title  = The New Zealand Economy, 1945–1981
  | publisher = New Zealand Institute of Economic Research
  | date   = 1982
  | location = Wellington
}}
* Harcourt, T. (2005). [https://web.archive.org/web/20050714032704/http://www.austrade.gov.au/corporate/layout/0,,0_S1-1_CORPXID0029-2_-3_PWB11011604-4_-5_-6_-7_,00.html Closer Economic Relations]. ''Australian Trade Commission Website''
* {{cite book
  | last   = Hawke
  | first  = G. R.
  | title  = The Making of New Zealand: An Economic History
  | publisher = Cambridge University Press
  | date   = 1985
  | location = Cambridge
  | isbn   = 0521278694
}}
* {{cite book | last=Russell | first=Marcia |author-link=Marcia Russell| title=Revolution: New Zealand from Fortress to Free Market | publisher=[[Hodder Moa Beckett]] | year=1996 | isbn=1869584287}}
* {{CIA World Factbook|year=2005}}
{{refend}}

==External links==
* [http://www.oecd.org/nz/ OECD New Zealand country page] and [http://www.oecd.org/eco/surveys/nz/ OECD Economic Survey of New Zealand]
* [http://www.mbie.govt.nz/ Ministry of Business, Innovation and Employment]
* [http://www.stats.govt.nz/ Statistics New Zealand]
* [http://wits.worldbank.org/CountryProfile/Country/NZL/Year/2012/Summary World Bank Trade Summary – New Zealand]

{{Economy of New Zealand}}
{{New Zealand topics}}
{{APEC}}
{{Organisation for Economic Co-operation and Development}}
{{World Trade Organization}}
{{Oceania in topic|Economy of}}
{{Sister bar|auto=y|d=y}}

{{DEFAULTSORT:Economy of New Zealand}}
[[Category:Economy of New Zealand| ]]
[[Category:World Trade Organization member economies|New Zealand]]
[[Category:OECD member economies|New Zealand]]