EDANZ

What is the Main Economy of New Zealand

For much of the country’s economic history, agriculture has been the driving force with which it has thrived. This was due to the country’s distant geographic location and other factors. However, with the remarkable transformations that happened during the last three decades, New Zealand has become one of the most competitive free-market based economies in the world.

Notwithstanding its distant location, New Zealand gradually developed sophisticated farming methodologies and practiced state-of-the-art agricultural technologies. These, coupled with the country’s innate fertile soil and sustainable weather conditions helped New Zealand’s agricultural and horticulture industries thrive.

The largest contributor to the country’s GDP is the service sector. While the country also relies heavily on international trade, establishing partnerships with the European Union, the US, Australia, and Asian countries like China, Japan, South Korea, Malaysia, and Thailand. Tourism has significant contributions to the economy as well being the top foreign exchange earner for the country.

Main Exports

As part of New Zealand’s export-driven economy, it is ranked as the world’s fifth highest exporter of dairy. Aside from this good, New Zealand also exports a diverse range of goods and commodities. These include meat, wool, wine, crops, timber, and more.

Agriculture

With land machinery replaced with highly mechanized equipment and custom-built aircraft, the country’s agricultural economy is booming. Aside from dairy, New Zealand is one of the leading exporters of lamb, mutton, and beef. Stable weather conditions and rich soil have proven advantageous for the country especially when it comes to growing crops such as barley, oats, wheat, and even citrusy fruits like kiwi fruit and passion fruit.

Tourism

Because of New Zealand’s beautiful weather and picturesque landscapes abundant in natural resources, tourism and film production have also exponentially increased as major players in the country’s economic growth.

The New Zealand Tourism Board has efficiently worked on promoting the country overseas while making sure that the country’s natural beauty and cultural significance are maintained. To date, most foreign visitors that frequent New Zealand are from Australia, the US, Europe, and Japan.

 

Although the New Zealand economy suffered some setbacks brought by the recession, it has slowly and steadily recovered over the past several years. Today, export growth might be expected to slow down, but the tourism industry is expected to boom with the influx of more tourists. Further, the exportation of dairy products will continue to gain momentum and keep the country’s economic robust!