Economy - overview:
Over the past 20 years the government has transformed New Zealand from an agrarian economy dependent on concessionary British market access to a more industrialized, free market economy that can compete globally. This dynamic growth has boosted real incomes - but left behind some at the bottom of the ladder - and broadened and deepened the technological capabilities of the industrial sector. Per capita income has risen for nine consecutive years and reached $27,900 in 2008 in purchasing power parity terms. Debt-driven consumer spending drove robust growth in the first half of the decade, helping fuel a large balance of payments deficit that posed a challenge for economic managers. Inflationary pressures caused the central bank to raise its key rate steadily from January 2004 until it was among the highest in the OECD in 2007-08; international capital inflows attracted to the high rates further strengthened the currency and housing market, however, aggravating the current account deficit. The economy fell into recession in 2008. In line with global peers, the central bank has cut interest rates aggressively; the new government is responding with plans to raise productivity growth and develop infrastructure.
GDP (purchasing power parity):
$116.6 billion (2008 est.) country comparison to the world: 61 $116.6 billion (2007 est.)
$113 billion (2006 est.)
note: data are in 2008 US dollars
GDP (official exchange rate):
$128.4 billion (2008 est.)
GDP - real growth rate:
0% (2008 est.) country comparison to the world: 198 3.2% (2007 est.)