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New Zealand Gross National Product Economics Essay

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Any opinions, findings, conclusions or recommendations expressed in this material are those of the authors and do not necessarily reflect the views of UK Essays.

Published: Mon, 5 Dec 2016

Economic of New Zealand is mixed. It is operates on free market principles. New Zealand has large manufacturing sector and it has also service sectors complementing a highly efficient agriculture sector. One third of real expenditure GDP is of exports of goods and services.

The New Zealand official yearbook, which includes statistics on the New Zealand economy, prices, overseas trade and money, public sector finance, banking publishes by the statistics New Zealand. The economic indicators including the exchange finance, Consumer Price Index (inflation), Government finance and monetary and financial statistics publishes by the Reserve Bank of New Zealand.

The Treasury works to provide an overall perspective on economic growth by incorporating analysis of institutions, microeconomics, macroeconomics and the economy as a system, complemented by the contribution of other government agencies. Treasury fills one of its primary roles – to advise the Government on significant economy-wide issues that matter most for New Zealand’s economic performance. (http://www.treasury.govt.nz/economy/overview)

Population:

As on 9 Sep 2012 at 08:39:49 pm: 4,441,135

On the bases of estimated resident population on 30 June 2012, increase in New Zealand’s population is one person every 12 minutes and 43 seconds. On following bases, these settings are done:

Every 8 minutes and 25 seconds, there is one birth.

Every 16 minutes and 26 seconds, there is one death.

Every 48 minutes and 9 seconds, there is a net migration loss of one New Zealand resident.

(http://www.stats.govt.nz/tools_and_services/tools/population_clock.aspx)

GDP:

The Gross Domestic Product (GDP) is the market value of all final goods and services produced within a country in a given period of time. In 2010, the GDP of New Zealand was worth 142.48 Billion US dollars. GDP of New Zealand averaged 41.4 Billion USD from 1960 to 2010 and in December 2010, the GDP getting an all time high of 142.50 Billion, and in December of 1968, all time of low score of 5.20 Billion USD. The below chart shown the historical data of New Zealand’s GDP.

New Zealand GDP

GDP Growth Rate:

The GDP Growth Rate provides an aggregated measure of changes in value of the goods and services produced by an economy. In first quarter of 2012 over the previous quarter, the Gross Domestic Product (GDP) expanded 1.10 percent. New Zealand GDP Growth Rate averaged 0.55 percent from 1987 to 2012 and in September 1999, the GDP getting an all time high of 2.70 percent, and all time low score of -2.60 percent in March 1991.The below chart shown the historical data of New Zealand’s GDP Growth Rate.

New Zealand GDP Growth Rate

The New Zealand economy grew by 0.3 percent in quarter-4 of the year 2011.

GNP:

In New Zealand, the Gross National Product decreased to 36491.00 in May of 2012 from 36543.00 in February of 2012. GNP of New Zealand averaged 27310.09 from 1987 to 2012 and in February 2008, the GNP getting an all time high of 36909.00, and in August of 1987, an all time low score of 18914.00. The below chart shown the historical data of New Zealand’s GNP.

New Zealand Gross National Product

Inflation Rate:

Inflation rate defined as a general rise in prices measured against a standard level of purchasing power. In the second quarter of 2012, the inflation rate was noted at 1.00 percent. New Zealand Inflation Rate averaged 4.92 percent from 1918 to 2012 and in September of 1918, the inflation rate getting an all time high of 44.00 percent, and in March of 1923, an all time low score of -15.30 percent. The below chart shown the historical data of New Zealand’s Inflation Rate.

New Zealand Inflation Rate

The CPI rose by 1.8 percent in quarter-4 of the year 2011.

Interest Rate:

The Official Interest Rate is the Official Cash rate (OCR) which introduced in March 1999 and reviewed eight times a year by Bank. The interest rate decisions are taken by the Reserve Bank of New Zealand. The interest rate of New Zealand was last recorded at 2.50 percent. Interest rate of New Zealand averaged 8.30 percent from 1985 to 2012 and in March of 1985, the interest rate getting an all time high of 67.3 percent, and in April of 2009, an all time low score of 2.50 percent. The below chart shown the historical data of New Zealand’s Interest Rate.

New Zealand Interest Rate

New Zealand left the interest rate unchanged at 2.50 percent.

Unemployment Rate:

The unemployment rate refers to the number of people actively looking for a job as a percentage of the labor force. In the second quarter of the year 2012, the unemployment rate in New Zealand recorded at 6.8 percent. New Zealand Unemployment Rate averaged 6.28 percent from 1985 to 2012 and in September of 1991, the unemployment rate getting an all time high of 11.20 percent, and in December of 2007, an all time low score of 3.50 percent. The below chart shown the historical data of New Zealand’s Unemployment Rate.

New Zealand Unemployment Rate

The Unemployment Rate rose by 6.8 percent in quarter-2 of the year 2012.

Employed Person:

In May of 2012, employed persons of New Zealand decreased to 2227.00 from 2229.00 in February of 2012. Employed persons averaged 1834.93 from 1986 to 2012 and in February of 2012, an all time high of 2229.00, and in November of 1991, an all time low score of 1500.00. The below chart shown the historical data of New Zealand’s Employment persons.

New Zealand Employed Persons

Balance of Trade:

The Balance of Trade is define as the difference between the monetary value of exports and imports in an economy over a particular period of time. New Zealand is highly dependent on the international trade. New Zealand’s main trading partners are: The United States (9.5%), European Union (12%), Japan (6.7%), China (14.1%) and Australia (19.3%). New Zealand imports mainly petroleum, vehicles and aircraft, machinery and equipments, electronics, textiles and plastics and exports forest products, meat, fruit and vegetables, dairy products, fish and wool. In July of 2012, New Zealand reported a trade surplus equivalent to 15 million in NZD. New Zealand Balance of Trade averaged -37.45 Million NZD from 1951 to 2012. In April of 2011, New Zealand Balance of Trade getting an all time high of 1158.00 Million NZD and in September of 2008, an all time low score of -1251.90 Million NZD. The below chart shown the historical data of New Zealand’s Balance of Trade.

New Zealand Balance of Trade

In April 2012, the trade balance of New Zealand was a surplus of $322 (9.1 percent exports) and annual trade deficit was of $541 million (1.2 percent of exports).

Consumer Spending:

In May of 2012, the Consumer Spending increased to 21802.00 from 21752.00 in February 2012. Consumer Spending of New Zealand averaged 16350.31 from 1987 to 2012 and in May of 2012, the consumer spending getting an all time high of 21802.00, and in May of 1987, an all time low score of 11570.00. The below chart shown the historical data of New Zealand’s Consumer Spending.

New Zealand Consumer Spending

Government Spending:

In May of 2012, the government spending of New Zealand increased to 6504.00 from 6450.00 in February 2012. Government spending of New Zealand averaged 4806.78 from 1987 to 2012 and in August of 2011, the government spending getting an all time high of 6509.00, and in February of 1988, an all time low score of 3569.00. The below chart shown the historical data of New Zealand’s Government Spending.

New Zealand Government Spending

Industrial Production:

Industrial production measures changes in output for the industrial sector of the economy. In first quarter of 2012, the industrial production increased 0.20 percent. Industrial production of New Zealand averaged -1.4 percent from 2006 to 2012 and in March of 2012, the industrial production getting an all time high of 2.8 percent, and in June of 2009, an all time low score of -10.3 percent. The below chart shown the historical data of New Zealand’s Industrial Production.

New Zealand Industrial Production

Labor Costs:

In May of 2012, the labor costs of New Zealand increased to 1056.00 from 1052.00 in February of 2012. Labor costs of New Zealand averaged 849.97 from 1992 to 2012 and in May of 2012, the labor costs getting an all time high of 1056.00, and in November 1992, an all time of low score of 699.62. The below chart shown the historical data of New Zealand’s Labor Costs.

New Zealand Labour Costs

Exports:

New Zealand’s economy is highly dependent on international trade. In August of 2012, the exports of New Zealand were worth 3.22 Billion NZD. Exports of New Zealand averaged 1.1 Billion NZD from 1951 to 2012 and in April of 2011, the exports getting an all time high of 4.7 Billion NZD, and in August of 1954, an all time low score of 0.0 Billion NZD. The below chart shown the historical data of New Zealand’s Exports.

New Zealand Exports

Imports:

In August of 2012, the imports of New Zealand were worth 4.10 Billion NZD. Imports of New Zealand averaged 1.3 Billion NZD from 1960 to 2012 and in October of 2008, the imports getting an all time high of 4.8 Billion NZD, and in April of 1960, an all time of low score of 0.0 Billion NZD. The below chart shown the historical data of New Zealand’s Imports.

New Zealand Imports

Stock Market (NZSE50FG):

In New Zealand, the NZSE50FG is a major stock market index which tracks the performance of large companies. During last 30 days, the stocks in New Zealand had a positive performance, rallied 206 points or 5.67 percent. Stock market of New Zealand averaged 2983.3 points from 2001 to 2012 and in May of 2007, the stock market getting an all time high of 4333.2 points, and in September of 2001, an all time low score of 1665.0 points. The below chart shown the historical data of New Zealand’s Stock Market (NZSE50FG)

New Zealand Stock Market (NZSE50FG)

Monetary Policy:

Monetary Policy is the process by the government, monetary authority or central bank of a country controls:

Availability of money

Cost of money or rate of interest to attain a set of objectives oriented towards the growth and stability of the economy

Monetary policy is the process by which the monetary authority of a country controls the supply of money, often targeting an interest rate for the purpose of promoting economic growth and stability.

The monetary policy is focus on maintaining the price stability, while looking for avoiding unnecessary instability exchange rate, interest rate and output. Today the Reserve Bank of New Zealand left the OCR (Official Cash Rate) unchanged at 2.5 percent. Because of the low level of the OCR, annual inflation fell to 1.0 percent in the second quarter of 2012. Thus such low inflation supports the Bank’s current decisions to maintain a low OCR.

Conclusion:

From the year 2010, the GDP, GDP Growth Rate and GNP increased so it is favorable for the international business

From January 2012, the Inflation Rate increased so it is favorable for the international business

From March 2011, the Interest Rate decreased so people decreased their savings and increased consumer spending so the chances of success of International business

Employment Rate increased from January 2008, so we can easily get human resource

From January 2012, New Zealand has surplus in balance of trade, it means its imports are less than exports it is unfavorable sign for international business

New Zealand’s Industrial productions were very low so the chances of success of International business

From the year 2007, the labor costs were increased constantly, the cost of human resources may be high in the business

New Zealand’s Stock market’s condition is too good and so it is favorable environment for the international business


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