New Zealand Economic Forecast
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For many years, New Zealand relied heavily on the agrarian sector but in the past two decades, the focus has shifted to a more industrialized and open market economy. Because of this, the country is in a better position to compete on a global level. Another change experienced by New Zealand is the boost of real income, specific to a broader technological ability within the industrialized sector. However, for government officials overseeing the country’s economy, a few challenges have been experienced.
For many years, New Zealand relied heavily on the agrarian sector but in the past two decades, the focus has shifted to a more industrialized and open market economy. Because of this, the country is in a better position to compete on a global level. Another change experienced by New Zealand is the boost of real income, specific to a broader technological ability within the industrialized sector. However, for government officials overseeing the country’s economy, a few challenges have been experienced. For instance, with consumer spending being debt driven, a large balance of payments deficit has occurred. In addition, the central bank was pressured to raise its rate due to pressures associated with the inflation rate. In fact, rates ended up being among the highest in the country from 2007 to 2008. Then with international inflows that were attracted to these higher rates, the country’s housing market and currency were strengthened, which created more deficit for the current account balance. Another challenge was seen when the global financial crisis hit but as a result, the New Zealand government responded with plans for developing facilities and infrastructure, as well as increasing productivity growth. Today, this economy is strong although some obstacles must still be hurdled.
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New Zealand GDP Forecast
In 1984, New Zealand went through an economic restructuring that increased real income and strengthened the industrial sector but faced with some financial challenges, it was understood that help was needed in tightening the country’s monetary policies and reducing the government budget deficit. Today, New Zealand has a successful economy although the country’s income still needs full recovery. In looking at the 2008 New Zealand GDP (Gross Domestic Product, Current Prices, US Dollars), we see the year closed at $131.07 billion in US dollars. For the following 24 months, a slight reduction of 10.13% occurred, closing 2009 at $117.795 billion and putting the country at number 52 for world rankings. Using a special formula and historical data, forecasters believe 2010 will have a GDP of $135.72. Then looking further to the future, numbers expected for 2015 are $157.273 billion (US dollars).
New Zealand Unemployment Forecast
Today, the New Zealand population is just under 4.4 million. Of this, approximately 2.18 million people work in one of the three primary sectors to include agriculture, industry, and services. Keep in mind that numbers reported for the “labor force”, or those working include not just people with current jobs, but also people actively seeking employment. As far as the New Zealand unemployment rate, the most recent reports came out in March of 2010 at 6%.
New Zealand Inflation Rate Forecast
In order for experts to determine the future New Zealand inflation rate, an index of 2000-100 for average consumer pricing is used. Starting with 2008, the inflation rate was at 3.96% but then with a 46.55% reduction, 2009’s numbers closed at 2.116%. With that, 2009 put the country at number 113 for world rankings. Now, experts expect that 2010 will have an inflation rate of 2.11, a very small increase from the prior year and for 2015, numbers will have an insignificant change that closes the year out at 2.015%.
New Zealand Current Account Balance Forecast
As far as the New Zealand current account balance, experts use major classifications so transactions for this country can be compared with economies of other countries around the world. The account balance in 2008 was minus $11.32 billion in US dollars and with a 68.51% decline, 2009 closed at a negative $3.565 billion, putting the country for world rankings at number 154. Then in looking at 2010 and 2015, experts are forecasting a negative $6.25 billion and a negative $12.886 billion in US dollars respectively.
