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New Zealand GDP

 

New Zealand GDP

New Zealand GDP

Gross Domestic Product (GDP) is an all-inclusive measure of the overall consumption and production of services and goods of New Zealand.

GDP is also used as one of the principal measures of general economic well-being.

The expansion of the economy, which is indicated by an increasing GDP, calls to mind concerns regarding inflationary pressure.

Gross Domestic Product computes the entire market value of services and goods which are New Zealand produced within a certain time frame after subtracting the cost of services and goods employed in the production process.

 

GDP, therefore, does not include transitional services and goods and takes into account only fresulting aggregates. It is computed as: GDP = C + I + G + (EX - IM), where “C” is private consumption, “I” is private investment, “G” is government expenditure, “EX” is exports of goods and services, and “IM” is imports of goods and services.
 

New Zealand's economy was traditionally built upon a constricted range of main products, such as meat, wool, and dairy products.

For example, from about 1920 up to the end of the 1930s, the quota for dairy export was usually about thirty five percent of total exports, and during some years made up approximately forty five percent of all the exports of New Zealand.
Because of the high demand for New Zealand’s main products such as its famous New Zealand wool, there was an industry boom in 1951 which led to the country’s high living standards.

Unfortunately, commodity rates for these exports decreased, and in 1973, New Zealand was usurped in its privileged trading position with the UK, because the latter joined the European Economic Community.

 

Because of this, in the period from the 1970s to the 1990s, the relative purchasing power adjusted Gross Domestic Product per capita of New Zealand decreased from approximately a hundred and fifteen percent of the Organization for Economic Cooperation and Development (OECD) average to eighty percent.

 

The state of New Zealand has adopted major economic restructuring since 1984, transferring from an agrarian based economy relying on concessionary British market contact for a more industrialized, free market financial system that can compete worldwide. This growth has boosted real incomes, broadened and deepened the technological capabilities of the industrial sector, and contained inflationary pressures.

Inflation in New Zealand is still among the lowest in the world of industry. GDP per capita has been going up in the same fashion as the large economies of Western Europe since the depression in 1990, but the discrepancies are still significant.


The country’s heavy reliance on trade makes its prospects of growth vulnerable to economic performance in Europe, Asia, and the United States.

 

The economy of New Zealand today is seen as successful. Nevertheless, the overall positive outlook has some challenges. The income levels of New Zealand, which had once been the same as that of Western Europe before the depression of the 1970s, have never really fully recovered. The GDP per capita of the country is, for example, lower than that of Spain and approximately sixty percent lower than that of the United States.
 

 

  

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