Overview: 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 has 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 been at a record high 7.4%. In 1988 GDP fell by 1% and in 1989 grew by a moderate 2.4%.

GDP: $39.1 billion, per capita $11,600; real growth rate 2.4% (1989 est.)

Inflation rate (consumer prices): 5% (1989)

Unemployment rate: 7.4% (1989)

Budget: revenues $18.6 billion; expenditures $19.1 billion, including capital expenditures of $NA (FY90 est.)

Exports: $8.9 billion (f.o.b., FY89); commodities--wool, lamb, mutton, beef, fruit, fish, cheese, manufactures, chemicals, foresty products; partners--EC 18.3%, Japan 17.9%, Australia 17.5%, US 13.5%, China 3.6%, South Korea 3.1%

Imports: $7.5 billion (c.i.f., FY89); commodities--petroleum, consumer goods, motor vehicles, industrial equipment; partners--Australia 19.7%, Japan 16.9%, EC 16.9%, US 15.3%, Taiwan 3.0%

External debt: $17.0 billion (1989)

Industrial production: growth rate - 1.6% (FY88)

Electricity: 7,800,000 kW capacity; 27,600 million kWh produced, 8,190 kWh per capita (1989)

Industries: food processing, wood and paper products, textiles, machinery, transportation equipment, banking and insurance, tourism, mining

Agriculture: accounts for about 9% of GNP and 10% of the work force; livestock predominates--wool, meat, dairy products all export earners; crops--wheat, barley, potatoes, pulses, fruits, and vegetables; surplus producer of farm products; fish catch reached a record 431,000 metric tons in 1987

Aid: donor--ODA and OOF commitments (1970-87), $448 million

Currency: New Zealand dollar (plural--dollars); 1 New Zealand dollar (NZ$) = 100 cents

Exchange rates: New Zealand dollars (NZ$) per US$1--1.6581 (January 1990), 1.6708 (1989), 1.5244 (1988), 1.6886 (1987), 1.9088 (1986), 2.0064 (1985)

Fiscal year: 1 July-30 June

NOTE: The information regarding New Zealand on this page is re-published from the 1990 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of New Zealand Economy 1990 information contained here. All suggestions for corrections of any errors about New Zealand Economy 1990 should be addressed to the CIA.