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Economy and living standards in New Zealand

While New Zealand has about 0.1% of the world population, its economy produces about 0.3% of the total production of goods on the planet (according to the government figures of New Zealand).

Compared to the rest of the world, it can be said that New Zealand has a rich and developed economy supported by the following indicators (2014 figures):

  • The per capita (gross domestic product divided by the population) GDP was estimated at $ 30,400.
  • Inflation was set at 1.3%.
  • Unemployment stood at 5.7%.
  • The New Zealand dollar is among the top 25 rated sovereign currencies, according to Standard and Poor’s (report of 31 December 2014).

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In addition, according to the Reserve Bank of New Zealand, it is expected that the country’s economy would grow 2-3% per year (calculation until 2016).

The New Zealand economy works on the principles of the free market, in which the state provides context, including a commercial law framework, so that the operations take place.

However, the State reserves some sectors, such as education and health, which is the most important funder and provider.

Although the free market system has always been dominant in the country’s economy, historically, it has changed the balance between government participation and free transactions of supply and demand. New Zealand entry postwar market was relatively late and can identify the 1980s as the major economic reforms in the country.

Currently, the New Zealand legal status and economy exhibited some distinct features:

  • The service (tertiary sector) dominates production and employment, the share of manufacturing (secondary sector). The resource-based industries (primary sector) rank third on the productivity scale, although New Zealand has traditionally been recognized for its agricultural development.
  • Most industries are technologically sophisticated, relying on production, according to the world standard in skilled labor.
  • The country is the most distant of economic bastions in the world. New Zealand is the most remote and geographically isolated from developed nations, but this production has minimized handicap their industries continuously improving transport and communications.
  • Exports remain the basis of the competitive advantage of New Zealand on certain resources that allow trade certain goods and services that are not produced efficiently in the country. Such is the case of trade in mutton which allows import vehicles.

New Zealand legal status has an environment of low inflation and monetary policy managed by an independent central bank, charged with maintaining price stability.

The flexible exchange rate policy is long-standing. There are no exchange controls or restrictions to bring or repatriate funds.

Unemployment has trended downward in recent years. The unemployment rate in 2012 was 6.9%; in 2013 it stood at 6.4% and 5.7% in 2014.

Since 2012, it has placed New Zealand among the top of the list of best countries to do business, ranking third, according to the annual study in the journal Forbes (Best Countries for Business list 2014).

Forbes also noted the improvement experienced by the stock market in New Zealand. The country’s stock market index, the NZX 50, rose nearly 25% outperforming US markets (Wall Street) and Australia. In addition, it was reported that June 2013 was the best year of the New Zealand stock exchange since 2004.

New Zealand legal statusis privileged fourth, behind only Hong Kong, Singapore, Australia and Switzerland.

About Shane

Shane is health blogger. He is a Science Graduate and he mostly spends his time over this blog. He is very much conscious about health and health benefits. Here he is discussing some general health issue and how you would be benefit.