Economy of New Zealand Crash Course

Economy of New Zealand Crash Course


New Zealand Economy, when
measured by the nominal Gross Domestic Product or GDP, is
the 53rd largest in the world. On the other hand, it is
56th largest national economy when measured by PPP or
Purchasing Power Parity. The unit of currency used by New
Zealand is New Zealand Dollar or NZD. It value when compared
to the American Dollar, is 1 NZD is roughly
equal to 0.67 USD. New Zealand treasure of natural
resources includes coal, limestone, iron ore, gold,
silver, natural gas, etc. New Zealand is ranked 29th
in the world in terms of gold production while it is 22nd
in iron ore production. In the year 2006, the total
value of mineral production excluding natural gas and oil
of the country was $1.5 billion. In spite of having good natural resource
deposits, the production of the mineral industry of New Zealand is far less
when compared to Australia its neighbor. No diamonds have been found
in the country until now. The news of the discovery of
Diamond is heard every few years in the country, but
none came out to be true. Basic figures No doubt New Zealand has
a developed, but it is comparatively small when
compared to other countries. The country is ranked 3rd among all the
43 countries of the Asia Pacific region. The Gross Domestic Product of the
country is 20,585.28 crores USD. The GDP per capita as measured
in 2017 is 42.940.58 USD. Gross National Income is
18,962.91 crores dollars. The Gross Domestic Product growth rate
of the country is 3.0 percent per annum. New Zealand is one of the top countries in
2018 index by the economic freedom score. It has an economic freedom score of 84.2
making Zealand’s economy the 3rd freest. The standard of living in New Zealand in the
early 19th and 20th century was one of the highest in the world based on the export of
agricultural products the meat and butter. However, its growth rate tended
to much slower in the list of developed countries after
the middle of the 20th century. Chronological view of New Zealand’s Economy The New Zealand economy was
solely based on agricultural products from the mid
18th to 19th century. The agricultural products include
meat, wool, butter, cheese, etc. Agricultural product and dairy are the most
valuable export materials in the country. Most of the wool and meat are imported
to Britain and other European nations. The wool and meat from New
Zealand was of superior quality and are sold
at very high prices. But the prices of export started
declining from the 1960s. By the year 1973, New Zealand has already
lost its position in the world market. This resulted in a change of the
economic system in New Zealand. It became one of the most
opened economies in the world from the closed and
centrally controlled economy. The World Bank considered the country as
the most business-friendly country in 2005. The economy of New Zealand
diversified and by the year 2008, most of the foreign exchange in the
country started coming from tourism.

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