New Zealand has an economically strong economy with high productivity. Liberalization, privatization, deregulation and liberalization have all contributed to New Zealand’s steady growth. New Zealand, a developed country, is a member OECD. This group includes the top-developed countries of the world. It has been able to bring in the best practices for building strong economies. The country is a mixed economic system that follows free market principles. This has helped to sustain the growth in GDP. Sectoral contribution to country’s economyCountry has seen its economy grow by producing high quality agricultural products like kiwifruit, which is exported a lot to the rest the world. New Zealand is now second in the export of milk products.
Additional areas of value for the economy include tourism and fishing. Agriculture, which includes farming and fishing, accounts for 7% of the workforce. 19% are employed in the manufacturing, energy, mining and energy sectors. 74% of the labour force is engaged in service sectors such as finance, communications and government activities. The data in Graph 1 indicates… The three sectors’ performance is represented by the number 0. New Zealand Exchange (NZX), is the major financial capital market. New Zealand is a major contributor to the current tourism boom. New Zealand has a wealth of natural resources. It uses the most technologically advanced and state-of-the-art processes to extract, produce renewable energy and refine its petroleum industry. The central government is second, with the private sector being the largest employer. Gross Domestic Products (GDP)Gross domestic products are the official measure to economic growth. The GDP is calculated using both the expenditure and production approach. After deducting the costs of goods/services used in production, the production method measures the value produced in NZ. The expenditure method measures the final price paid for goods or services in the country. During calculation, imports and exports are added to each other. Quarterly the GDP is calculated. In this quarter the economy experienced an increase of 1%(b). Quarterly data from the most recent quarter shows that investment spending has fallen by 0. 1%. The GDP per capita grew by 0. 5%. Primary industries Although there have been ups and drops in GDP over the past 20 years, the country’s primary industries has been steadily rising since the 2008 global financial meltdown. The government continues to make efforts to reduce unemployment and create equal opportunities for all workers. The government is also opening up immigration to many countries in order to attract skilled labor. This directly affects the labor utilization, participation rate, and, consequently, GDP growth. According to statistics New Zealand (a), the employment rate increased by 0. The country is making great progress in the production of goods. A greater share of household power is possible thanks to hydroelectric generation. 7% increase. The country’s disposable gross income has increased in recent years. The treasury is an important part of New Zealand’s economy. It provides forecasts on GDP, consumer price, unemployment, and current account positions. For lowering the rate of inflation, the treasury’s intervention is crucial. The country’s economy is governed by its action plans. According to a 2016 US-based tax foundation’s report, New Zealand’s overall taxes are ranked second in the world. However, it is the most tax-friendly country in terms of personal taxes. The country offers an environment conducive to tax planning, with very little other tax than income tax or GST. New Zealand allows individuals to return their taxes in a flexible manner. The core crown revenue of $75, which is also tax revenue, was the main source for revenue for the government. 6 billion in 2016-17. Flat rates of 28% are applied to corporations and businesses. The tax concession of four years gives new immigrants an attractive tax option. Credits are also available for overseas tax on income that is not subject to New Zealand tax. The GDP is made up of a large portion of government spending, which includes goods and services. The government provides quality healthcare and education to New Zealand citizens. The New Zealand treasury plays a significant role in the economy. They provide forecasts on GDP and consumer prices. For lowering the rate of inflation, the treasury’s intervention is crucial. The country’s economic performance is controlled by the treasury’s action plans. Population. New Zealand’s population is projected to rise despite the loss of Maori people. Since 1960, the average population growth has been 1. The average annual growth rate is 16%. New Zealand’s population is growing, and this will result in a stronger economy. The Government SpendingGraph 3 shows a steady increase in spending each year, which is a good indicator that government policies are being effectively implemented. The government invests in social security programs such as education, health, and welfare. It indirectly creates a young, educated workforce that will allow for greater economic growth.
New Zealand’s economy performs well overall due to multiple factors including strong exports, innovative migration policies, technological advancement, free trading programs and policies as well as conducive taxation and a skilled workforce. Housing prices and the skill mismatch that causes underemployment are some of the negatives. New Zealand’s current economic outlook is positive, but it needs to improve its international competitiveness. New sources of energy, infrastructure building and collaboration with the global community to improve exports could be key factors in the country’s economic growth. Economic growth will be facilitated by government spending on social security. A healthy, educated population will lead to a productive workforce. The national interest would be further enhanced by policies and strategies that are region-specific.
