Small but efficient, New Zealand’s deregulated economy is renowned for innovative business ideas.

Population:	3.8m
Area:	271,000 sq km
	2000	2001e
GDP:	NZ$117bn	NZ$118bn
Real GDP growth:	3.1%	2.6%
Inflation:	2.6%	2.8%
GDP per capita:	NZ$30,695	NZ$30,778
Merchandise trade with UK (2000/2001):
Exports to UK:	NZ$1505m
Imports from UK:	NZ$1187m
Trade deficit with UK:	NZ$318m
Service figures unavailable
Major exports to UK (2000/2001):
Lamb	NZ$450m
Butter	NZ$159m
Wool	NZ$122m
Water & alcoholic beverages	NZ$94m
Apples and Pears	NZ$82m
Merchandise trade with Australia (2000/2001)
Exports to Australia:	NZ$5603m
Imports from Australia:	NZ$8448m
Trade deficit with Australia:	NZ$2845m
(Services figures unavailable)
Major exports to Australia (2000/2001)
Chemicals and related products	NZ$463m
Crude petroleum	NZ$460m
Electrical machinery and appliances	NZ$344m
Paper & paperboard	NZ$340m
Exchange rates (01Mar02):	NZ$1=£0.30	£1=NZ$3.36
	NZ$1=A$0.81	A$=NZ$1.23
Economic freedom Index (10=free) Source: Economic Freedom of the World report 2001
Unemployment rates Annual average % 2000/1 Source: DFAT Australia
Languages spoken Non-English languages spoken (’000s) Source: Stats NZ

Ranked the world’s third most economically-free country by the Economic Freedom of the World report 2001), New Zealand has an economy primed for long-term international competitiveness. It boasts a cleanly-floated exchange rate, free movement of capital, deregulation, modernised infrastructure, steady GDP growth, low inflation, falling debt and one of the lowest average tariff rates in the world. During the past 15 years the Government has eliminated all domestic and export subsidies, making New Zealand’s economy one of the most open in the world. These and other reforms have increased income and GDP, introduced new technologies, and reduced inflation to among the lowest in the industrial world.

New Zealand’s economy has been experiencing strong growth on the back of low exchange rates and higher world commodity prices. In the year to June 2001 New Zealand reported annual growth of 2.3% with an impressive quarterly economic result of a 2% increase, driven by increased business investment. Key export categories remain agricultural, including dairy and forestry products.

New Zealand welcomes and encourages foreign investment without discrimination and offers a variety of attractive incentives. The Government actively seeks to provide an environment allowing international investors to establish operations or to collaborate with New Zealand companies.

A CER agreement with Australia means a business operating from New Zealand gains duty-free access to its neighbour, although content must be 50% New Zealand and/or Australian to qualify. Free trade agreements such as the negotiated economic cooperation agreement with Singapore (and others in the pipeline) are helping increase the size of that free market.

New Zealand imports a variety of British goods and services, although demand is highest in the areas of aerospace, leisure marine, electrical mechanical and process engineering, agriculture and fisheries, transport and infrastructure, paper printing and packaging, pharmaceuticals, health care and medical biotechnology, creative and media, giftware, food and drink sectors. Additionally, there are niche opportunities in defence, metals and minerals, chemicals and education.

Globally recognised for its clean and green environment, New Zealand is an increasingly successful tourism destination, boosted recently by Kiwi Peter Jackson’s New Zealand production of The Fellowship of the Ring, impressively advertising the country’s twin draws of spectacular scenery and semi-hazardous adventure, whether whitewater rafting or bungee-jumping.

Small but efficient, New Zealand provides cost-effective competitive advantages that can directly benefit overall profitability of UK companies, as well as being a wonderful place to live and work.