New Zealand Economic Structure
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New Zealand has a mixed economy, which operates on free market principles. New Zealand’s manufacturing and service sectors complement the country’s highly efficient agricultural sector.[br]
New Zealand has a mixed economy, which operates on free market principles. New Zealand’s manufacturing and service sectors complement the country’s highly efficient agricultural sector.[br]
New Zealand Economic Structure: Major Contributors
Although most of New Zealand’s exports are based on agricultural products, its contribution to the GDP is the least. In the country, the services sector is of prime importance. Here is how all the sectors contributed to the economic structure of New Zealand in 2009:
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Services: 69.7%
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Industry: 25.8%
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Agriculture: 4.5%
In terms of the labor force employed, the proportion employed by the various sectors in 2006 is as follows:
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Services: 74%
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Industry: 19%
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Agriculture: 7%
New Zealand’s industrial sector includes mining, food processing, textiles, machinery and transportation equipment. The tourism industry, which falls under the services sector, is one of New Zealand’s largest export industries, generating approximately NZ$6.3 billion in foreign exchange per annum. Domestic tourism generated $6.4 billion in the same year. Tourism, experiencing rapid growth and innovation, accounts for roughly 10% of New Zealand’s GDP.
The distribution of industries in New Zealand on the basis of their role:
Primary industries: These include agriculture, horticulture, forestry, mining and fishing, all of which play a fundamental role in New Zealand’s economy. This sector accounts for more than 50% of New Zealand’s total export earnings.
Manufacturing industries: In the 12 months ended September 2007, the output from the manufacturing sector accounted for 14.2% of New Zealand’s real GDP. These industries employed 12.8% of the overall labor force during the period. Processing of the primary sector’s output (food and forestry) makes up a large proportion of the sector.
Service Industries: These industries, which account for over two-thirds of the GDP, have recorded impressive growth during 2002-2005. After slowing in 2007, the sector grew at 3.8% in the year ended September 2007. Retail and wholesale trade, restaurants and hotels are a major part of the services sector.[br]
New Zealand Economic Structure: Income Trends
New Zealand has a relatively high standard of living, with an estimated GDP per capita of $27,017 in 2008. This is comparable to that in Southern Europe. Since 2000, the country’s median household income has improved substantially. However, New Zealand’s GDP suffered in 2008 due to the global recession.
According to The Economist’s 2005 worldwide quality-of-life index, New Zealanders have a high level of life satisfaction, despite lower GDP per-head levels than several OECD countries.
