New Zealand - Economy Central Bank Government Politics

Discussion in 'International Stock Markets' started by Stockaholic, Apr 5, 2016.

  1. Stockaholic

    Stockaholic Content Manager

    Mar 29, 2016
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    Economy of New Zealand

    New Zealand has a market economy that depends greatly on international trade, mainly with Australia, the European Union, the United States, China, South Korea and Japan. It's heavy dependence on trade leaves its prospects for growth vulnerable to economic performance in each of those countries. Up till the 1960s, the New Zealand economy was based on a foundation of exports from its very efficient agricultural system. Leading exports included meat, dairy products, forest products, fruit and vegetables, fish, and wool - most of which went to Britain.

    New Zealand has substantial hydroelectric power and sizeable reserves of natural gas. Some large scale manufacturing industries, many of which were established in a climate of import substitution with high tariffs and government subsidies such as car assembly, have now completely disappeared. It now has only small manufacturing and high-tech sectors, and is strongly focused on tourism and primary industries. Manufacturing sectors which remain include food processing, metal fabrication, wood and paper products.

    Free-market reforms beginning in the 1980s removed many barriers to foreign investment, and the World Bank in 2005 praised New Zealand as the most business-friendly country in the world.[14][15] The economy diversified and by 2008, tourism had become the single biggest generator of foreign exchange.[16] However, these free-market reforms have contributed to increased inequality within New Zealand with the gap between the rich and the poor growing at a faster rate than in most other developed countries,d.aWw&cad=rja

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