New Zealand Economy
New Zealand economy is to a great extent reliant on trade with international partners like China, the United States, the EU and South Korea. The sectors which mainly support New Zealand economy are sectors in advanced technology and light manufacturing. Tourism plays an important role in New Zealand economic development, as well as agriculture.
A free-market oriented economy has encouraged foreign investment into New Zealand, for which in 2005 the World Bank complemented New Zealand economy as being the number one country in the world with regard to business friendliness.
For New Zealand economic advancement, the government sought to implement various projects to diversify the economy of New Zealand from being mainly based on agrarian activities into being more internationally business oriented.
In the past, the economy of New Zealand was very regulated and subsidized. This was due to the strong welfare state policies that the governments which controlled New Zealand economy in the first half of the 1900’s. This trend which was negative for New Zealand economic growth came to a halt in the latter part of the 1900’s due to the reform policies implemented for the New Zealand economy. These governments sought to deregulate and liberalize New Zealand economy and to set the foundations for New Zealand economy as it is today. Deregulation of New Zealand economy helped create the business oriented and friendly investment environment in New Zealand. This resulted in New Zealand economy being ranked very high for its business freedom by various studies and international financial agencies.
In 2010, it was estimated that trade with China accounted for the second largest portion of trading activity in New Zealand economy. Within the OECD member grouping, New Zealand was recorded as the second-lowest country in terms of individual tax in 2010 as well. A corruption perceptions index concluded in 2011 showed New Zealand as the number one country in the world on the Transparency International Corruption Perceptions Index. This means that New Zealand was viewed as the least corrupt country internationally.