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What is New Zealand's rich economy based on
What is New Zealand's rich economy based on

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What is New Zealand’s rich economy based on?

New Zealand’s economy does not usually appear in absolute and important rankings, and this is mainly due to the size of the country. However, this was not an impediment for a decent first-world quality of life not to be achieved.

New Zealanders live in a territory with one of the lowest corruption rates, having a world-class education system. No wonder that New Zealand directs important investments for all educational levels. Where does this stable and prosperous economy come from, with an average GDP of US$93 billion a year and a per capita income of US$25,000? In this post, we’ll show you how the country’s economy works, the origin of wealth and financial stability that give rise to such a great quality of life. Follow up!

Tourism

New Zealand has several activities and sights that are added to the hospitable culture of the country and organized structure that accommodates all tourists very well.

In this sense, the highlight is its international education that offers language courses, professional courses, undergraduate, graduate, masters and even specific approaches to research, so that lots of international students in the world choose to study in New Zealand. International students have chances to get work in the country and, later, residency.

Mainly because of these factors that the New Zealand tourism service has been growing year after year, including among Brazilians who represent, on average, 20 thousand visitors per year. With this, the country has been investing in structuring the city, in policies that encourage tourism and also in the conservation of the main tourist attractions.

Exports

An important part of New Zealand’s economy is represented by exports. The country is known for its large production of meat and wool. This activity originates from cattle slaughter, which is mainly directed to the United States, China, Asia and Canada.

Wool and dairy products also represent an important economic slice, but the scenario is expanding. In recent years, New Zealanders have been standing out for the exports of others. Are they:

  • wood: raw material used for the production of pulp and construction of houses;
  • seafood: produced by maritime farms where mussels predominate;
  • wines: cultivation of noble grape varieties that give rise to high quality wines that are tasted all over the world;
  • kiwi: fruit native to the region and exported to several countries.

Large sheep and dairy farming was made possible by the temperate climate and government investments in land improvement and agricultural management policies. From that, came other activities, such as forestry, horticulture, fishing, manufacturing and raising deer. This expansion has made New Zealand’s economy even more balanced and stable.

In addition to these products, the country stands out in some resource sectors, such as gold, coal, sand, iron, crude oil and natural gas, which are used both for domestic use and for exports.

To minimize the impacts of these productions, New Zealand is dedicated to research aimed at finding ways to reduce carbon emissions, encourage the cultivation of organic food and agricultural products, and clean and renewable means of producing energy.

In fact, scholarships are offered to international students in New Zealand who’re interested in contributing to research on sustainability, mainly in the areas of agriculture and renewable energy.

The programs last an average of one to two years and are offered by the New Zeland Development Scholarships. For this, it is necessary to keep an eye out when applications open and have a proficiency test in English and proof of at least one year of experience in the desired area.

Imports

Australia, which is the closest neighbor, is responsible for moving millions of dollars every year, as it represents around 18% of imports into the New Zealand economy, while New Zealand exports to Australians average 23 %.

However, this activity is not limited to the country of kangaroos. New Zealand’s foreign trade also has important economic ties with Singapore, Indonesia and Malaysia, with an important share of 16% of its imports.

Relations with Australia

In 1983, Anzcerta was created, which is an international trade agreement between Australia and New Zealand. The main objective was to facilitate free trade between these two countries, including the services sector.

Anzcerta was already responsible for raising the Australian-New Zealand trade relations by more than 400% in the period from 1983 to 1999. This scenario meant the increase in the volume of financial transactions and the economy of New Zealand and Australia.

This promising result was made possible by the elimination of taxes and quotas on goods, bringing about an integration of the two economies.

In addition to important economic relations with the neighboring country, New Zealand has a relationship and a free trade agreement with China. This agreement is known as the Association of Southeast Asian Nations (ASEAN).

Services and government

The country’s public services are major employers, particularly in Wellington where government departments are headquartered. So much prosperity, organization, wealth and structuring is due to the policies carried out by the New Zealand government.

In addition to the low level of corruption, the government has an encouraging and organizing characteristic, which is why it directs important investments to tourism, education and agriculture.

Government policies also offer full support to producers and entrepreneurs, so that products reach foreign markets and are able to meet demand.

However, when New Zealand companies cannot supply this volume, as is the case with the automobile industry, the government acts with zero-rate imports. This means that ties are strengthened with other economic ones and they can even direct their resources in activities that produce the best and represent the best financial return.

New Zealand’s economy stands out for its planning and stability, and this and other factors make the country one of the best places to live. This economic model is so promising and functional that it has been studied by several other nations, including Brazil in an attempt to increase its growth.

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