New Zealand Basic Information

By | July 21, 2022

Composition of the government:

  • Jacinda Arden – Prime Minister
  • Grant Robertson – Minister of Finance
  • Ron Mark – Secretary of Defense
  • David Clark – Minister for Health
  • David Parker – Trade Secretary
  • Winston Peters – Secretary of State for Foreign Affairs

Full NZ Government composition at www.beehive.govt.nz

New Zealand Basic Information

Demographic trends: Population, average annual increase, demographic composition (including nationalities, religious groups)

86.4% of the population in New Zealand live in urban agglomerations, with half of the NZ population living in NZ’s four largest cities (Auckland, Hamilton, Wellington and Christchurch). 77% of the population lives in the North Island of NZ, 23% in the South Island.

Number of inhabitants, density per km², share of the economically active population

  • Population: 4.93 million (March 2019 estimate)
  • Population density per km²: 15
  • Share of economically active population: 69.8%

Average annual population growth and demographic composition

  • Average annual gain: 1.70 (2018)

Demographic composition :

  • 19.69% – age 0 – 14 years
  • 65.06% – age 15 – 64 years
  • 15.25% – age 65 and over

Nationality composition:

  • 74% – immigrants of European origin
  • 14.9% – Maori (indigenous population)
  • 11.8% – immigrants from Asia
  • 7.4% – immigrants from Oceania

Religious composition:

  • 44.3% Christian (11.6% – Church of England, 11.6% – Roman Catholic, 7.7% – Presbyterian, 2.4% – Methodist)
  • 2% Hindu, 1% Muslim, 42% Atheist and others

Basic macroeconomic indicators for the last 5 years (nominal GDP/cap., development of GDP volume, inflation rate, unemployment rate). Expected development in the territory with an emphasis on the economic sphere.

Basic economic indicators of New Zealand
Item / year 2015 2016 2017 2018 2019
HDP (v mld. USD) 177,62 189,29 202,59 205,02 215,00
GDP growth (in %) 3,7 4,2 2,6 3,0 2,3
HDP (vs. USD/1 obv.) 37 039 37 528 37 859 41 570 42 062
inflation rate (in %) 1,43 1,30 1,6 1,9 1,9
non-stop rate (in %) 4,9 5,2 4,5 4,3 4,0
NZD exchange rate k USD 31.12. 0,68 0,69 0,70 0,95 0,67
NZD exchange rate k EUR 31.12. 0,62 0,66 0,59 0,58 0,60
official interest rate (in %) 2,5 1,75 1,75 1,75 0,75

Sources: www.stats.govt.nz, https://tradingeconomics.com/new-zealand/indicators

The most dynamic sector of the NZ economy in 2019 was services, which accounted for 66% of GDP (among the most developed are financial, insurance and business services and services in the tourism industry), as well as industrial production, agriculture and agricultural production, mining, fishing and forestry. Developments in Asian markets are usually important for the New Zealand economy, the US dollar exchange rate and climatic conditions due to the agricultural character of the country and its exports also have an impact on the economy.

In 2019, GDP increased by 2.3% year-on-year. New Zealand’s GDP represents 0.18% of the world economy.

Unemployment in 2019 was at the level of 4.0%. Check themotorcyclers for New Zealand defense and foreign policy.

The annual inflation rate increased to 1.9% in 4Q 2019 from 1.5% in 3Q. This is the highest rate for 2019. The highest increase was recorded in housing costs (3%), food prices 2.5%, restaurant meals 3.4%, alcoholic beverages and tobacco 4.9% (cigarettes and tobacco 9.1 %).

Wage growth was 2.6% year-on-year, the average hourly wage in New Zealand was 32.83 NZD in Q4 2019.

According to the World Bank’s “Doing Business” report, New Zealand ranks 1st in the world for ease of doing business and ranks 3rd in the Index of Economic Freedom (after Hong Kong and Singapore).

NZ will continue to be promoted as a major tourist destination. The number of tourists visiting New Zealand has been growing continuously since 2010, in 2019 (until December) the number of tourists reached over 3.89 million ( note the population of New Zealand is million ). Spending by tourists also increased. The NZ government devotes considerable financial resources to the development of tourism infrastructure every year, for example the Tourism Infrastructure Fund administered by the Ministry of Trade, Innovation and Employment will provide $100 million NZD over a period of 4 years for the development of tourism-oriented infrastructure. Most tourists come from China, Australia and the USA. Tourism accounts for 20% of total exports and contributes 6% to GDP. Tourism, along with the export of education services, are the most affected sectors of the NZ economy as a result of the COVID-19 pandemic. Check diseaseslearning to learn more about New Zealand political system.

With regard to the COVID-19 pandemic, the NZ government 17.3. 2020 announced a NZD 1billion economic recovery package . The package includes salary subsidies, support during sickness, tax relief and more. This package already corresponds to 4% of GDP. Subsequently, the New Zealand government released a package to support entrepreneurs in the amount of 9.3 billion NZD, and at the same time released the previous ceiling on salary subsidies (previously 150,000 NZD for individual entrepreneurs). The Reserve Bank of New Zealand (the central bank) sharply cut the interest rate by 75 points to 0.25% for the next 12 months. At the same time, the Central Bank started buying back NZD 30 million of government bonds. On 12020 The NZ Government announced another NZD billion package to support SMEs, which includes tax relief, advice and assistance for tenants and landlords.

An overview of all measures to support the economy can be found on the government portal:

https://treasury.govt.nz/information-and-services/nz-economy/covid-19-economic-response

Public finances, state budget – income, expenditure, balance for the last 5 years

The state budget is usually approved in May. The financial year lasts from until 30.6.

The budget for 2019-20, approved in May 2019, is in force. The budget for 2020-2021 will be presented on 12020.

State budget
Item / Financial year 2015/16 2016/17 2017/2018 2018/2019 2019/2020
Revenue (in NZD million) 74 900 78 500 83 800 105 381 133 000
Expenditure (in NZD million) 74 900 77 400 80 500 102 281 142 000
Balance (in NZD million) (adjusted) 0 1 100 3 300 3 100 – 9 000

Source: www.treasury.govt.nz, www.treasury.govt.nz

 

Balance of payments (current, capital, financial account), foreign exchange reserves (last 5 years), public debt to GDP, foreign debt, debt service

Balance of payments from 2014-2018
Item (in million NZD)/ year to September 2014 2015 2016 (12/2016) 2017 2018 2019
Current account -6 090 – 8 103 – 7 110 – 7 722 – 6 149 – 10 801
Capital account 13 383 683 – 19 – 17 – 20
Financial account 3 185 1 470 – 3 251 1 498 -303 1 153

Source: www.treasury.govt.nz

According to the NZ Statistical Office, the current account deficit in 2019 amounted to more than NZD 10,801 billion.

The deficit was mainly caused by lower prices of export raw materials and agricultural production (dairy products and meat), on the contrary, good results of trade in services had a positive effect on the balance of payments. Services in tourism have the largest share of services. The number of foreign tourists to NZ continues to rise, with the number of tourists doubling in the last two years, with the most tourists coming to NZ from China and Australia. In 2019, New Zealand was the destination of over NZD 429.2 billion in foreign investment, with Australia and the US again the largest investors.

Foreign indebtedness, debt service

New Zealand’s problem is relatively high foreign debt. Total indebtedness at the end of 2019 was NZD 150.9 billion, an increase in debt during 2019 from NZD 148.6 billion at the end of 2018.