This document contains information about New Zealand's economy, including: - Key trading partners for exports like aircrafts, petroleum, fish, and wood. - New Zealand has a market economy with advantages like consumer freedom but also disadvantages like potential for worker exploitation and overproduction. - Unemployment rate is 4% and GDP is $112.4 billion with GDP per capita of $27,200. - It discusses two large New Zealand companies, AMP Limited and APN News & Media, and notes the economy has been in recession since 2008. - It presents data on GDP and forecasts economic growth and policies needed to boost prosperity through tax reform, tighter fiscal policy, and structural policy changes.

1. Group
Sadan arshi 54
Moazzam hussain 37
Mustafa 46
Hamza 20
Aadil 4
Nazim 49
Neiyaz 38
Ammar 9
Fazeh 16

3.  1 New Zealand dollar = 0.5095 U.S. dollars

4.  Aircrafts/vehicles – Australia, United
States, Japan, China, U.K.

5.  Petroleum – Australia, United
States, Japan, China, Singapore, Germany

6.  Fish - Australia, United States, Japan, China,
U.K.

7.  Wood - Australia, United
States, Japan, China, U.K.

8.  New Zealand has a Market Economy
 Advantages:
 Buyers have freedom in what they buy
 Able to determine price of products
• Disadvantages:
•More worker exploitation
•Overproduction of goods

9.  Unemployment rate: 4%
 GDP: $112.4 Billion
 GDP Per Capita: $27,200

10.  AMP Limited
 They produce financial services
 They have been in business for 160 years, starting as
a “friendly society” since 1849.
 A friendly society is a mutual association for insurance, pensions or savings and loan type
purposes, or cooperative banking.

11.  APN News & Media
 They produce newspapers, online publishing, radio
broadcasting, and outdoor advertisements.
 They have been in business for 146 years since 1863.

12.  The economy of New Zealand has been in a
recession since 2008.
 A recession is when the state of the economy declines for 2 or more quarters in
a year.

13. -3
-2
-1
0
1
2
3
4
5
6
7
Mar-97 Mar-99 Mar-01 Mar-03 Mar-05 Mar-07 Mar-09 Mar-11 Mar-13
Budget Update
Annual average % change
Forecast

14. Main forecast
3
4
5
6
7
8
9
10
11
Mar-99 Mar-01 Mar-03 Mar-05 Mar-07 Mar-09 Mar-11 Mar-13
%
Forecast

15. Budget 2009 Forecasts
2013
Year ending 30 June
-8
-6
-4
-2
0
2
4
6
% of GDP
2003 2005 2007 2009 2011
Forecast

16. Trading partner outlook improving
-2
-1
0
1
2
3
4
5
1999 2001 2003 2005 2007 2009 2011
Actual and Consensus Forecasts
Annual average % change

17. -30
-20
-10
0
10
20
30
40
50
1999 2001 2003 2005 2007 2009
Firms' own activity outlook
Net % of firms

18. 40
45
50
55
60
65
70
75
80
1999 2001 2003 2005 2007 2009 2011
Actual Budget 2009 Forecasts
Trade Weighted Index (TWI)

19.  Good news:
 The worst of the global recession is over
 Signs of modest recovery in NZ
 Bad news:
 Housing market strength and stronger NZ dollar
suggest an unbalanced recovery (too much domestic
demand, strong dollar, not enough exports)

20. 80
100
120
140
160
180
200
1990 1993 1996 1999 2002 2005 2008
Tradable sector Non-tradable sector
Real GDP (Mar-1990=100)

21.  Complex inter-linkages between these two
goals.
 But policies to address them are
complementary
Higher
economic
growth
Reduced
vulnerabilities

22. 0
10,000
20,000
30,000
40,000
50,000
1990 1994 1998 2002 2006 2010 2014 2018 2022
Australia at 1.5% pa NZ at 1.5% pa NZ at 3.3% pa
Real GDP per capita ($US, 2000 prices)
Projections

23. 0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
1820 1870 1913 1950 1973 1990 1998 2006
GDP per capita (1990 US$000s, PPPs)
Australia
NZ
US
Argentina
Uruguay

24. 0
5,000
10,000
15,000
20,000
1950 1958 1966 1974 1982 1990 1998 2006
South Korea NZ
GDP per capita (1990 US$000s, PPPs)

25. -110%
-100%
-90%
-80%
-70%
-60%
-50%
1989 1993 1997 2001 2005 2009
Net international investment position
% of nominal GDP

26.  Tax mix:
 Higher GST, land tax, capital gains tax. Lower
income taxes (but which ones?).
 Monetary-Fiscal policy mix:
 Slower growth in government spending would
allow RBNZ to keep interest rates low for longer
 Structural policy reform that encourages
resource shifting

27. 0
50
100
150
200
250
1994 1999 2004 2009 2014 2019 2024 2029 2034 2039 2044 2049
Net debt (% of GDP)
If government spending
continues on historical
trend
Outcome needed
(2009 Fiscal Strategy)

28.  Not enough focus on the magnitude of the
challenges we face
 Too much focus on short-term pain of reform
There is an urgent need to shift the focus
and make clear the choices we face

29.  The economy is picking up but the recovery
looks “unbalanced”
 NZ needs a comprehensive strategy for
significantly lifting our future prosperity
 This will require bold policies that bring
together tax reform and structural policy
reform and permit a policy mix of tighter fiscal
policy and looser monetary policy
 Business leaders have an important role to play
in framing the policy debate