B3.2 New Zealand Economy
Description
This article is from the New Zealand FAQ, by Phil Stuart-Jones and Lin Nah with numerous contributions by others.
B3.2 New Zealand Economy
Since 1984 the government has been reorienting an agrarian economy
dependent on a guaranteed British market to an open free market economy
that can compete on the global scene. The government had hoped that
dynamic growth would boost real incomes, reduce inflationary pressures, and
permit the expansion of welfare benefits. The results have been mixed:
inflation is down from double-digit levels, but growth has been sluggish
and unemployment, always a highly sensitive issue, has exceeded 10% since
May 1991. In 1988, GDP fell by 1%, in 1989 grew by a moderate 2.4%, and
was flat in 1990-91. Current (1994) growth is around 2-4% and rising.
The economy is based on agriculture (particularly dairy products, meat, and
wool (68 m sheep, 2 m dairy cows)), food processing, wood and paper
products, textiles, machinery, transportation equipment, banking and
insurance, tourism, mining. Fish catch reached a record 0.5 m tonnes in
1988. Highly dependent on external trade, NZ is currently trying to move
from being a primary to a secondary producer.
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