New Zealand, with a population of 5,124,100, ranks 118th globally, just behind Ireland. Located in the southwestern Pacific Ocean, it covers 267,710 sq. km, ranking 73rd worldwide, just below Burkina Faso.
New Zealand’s economic position in 2022 is notable, with a GDP of $248.10 billion USD, ranking 49th globally. It falls behind Portugal, which has a GDP of $255.20 billion USD. The GDP per capita in New Zealand is $48,418.59, ranking 25th worldwide.
It is surpassed by Germany, with a GDP per capita of $48,717.99. New Zealand’s economy demonstrates stability and growth, positioning it as a key player in the global market.
What are the economic activities of New Zealand?
- Primary activities: 5.7% of GDP.
- Secondary activities: 21.5% of GDP.
- Tertiary activities: 72.8% of GDP.
Primary Sector of New Zealand
New Zealand’s primary sector, dominated by agriculture, thrives due to its temperate climate and rich natural resources. With 38.64% of the land used for agriculture, the country produces a diverse range of products including milk, beef, kiwifruit, apples, grapes, lamb/mutton, potatoes, wheat, barley, and onions.
Despite contributing 5.7% to the GDP, agriculture plays a crucial role in the economy. The sector’s variety of crops and animal products not only sustains the nation but also drives export revenue and supports rural communities.
The country’s diverse geology provides a rich array of natural resources, including natural gas, iron ore, sand, coal, timber, hydropower, gold, and limestone. These resources play a crucial role in driving the economy, with mining, forestry, and energy sectors being significant contributors to the primary sector.
New Zealand’s oil production of 8,249 barrels per day ranks 57th globally, with reserves of 64.1 million barrels, representing 0% of world reserves.
New Zealand’s natural gas production in 2020 reached 4954 million m³, ranking 51st globally. This production significantly contributes to the country’s economy, supporting industries such as manufacturing, electricity generation, and export activities.
Secondary Sector of New Zealand
What is the secondary sector or what are secondary activities?
The secondary sector encompasses industries that transform raw materials from primary activities into finished products for consumption. In New Zealand, the main industrial products include forestry products like logs and wood articles, manufacturing goods, construction materials, and real estate services.
Manufactures in New Zealand’s total exports in 2023 accounted for only 16.09%, indicating their relatively lower significance in the country’s export profile.
Tertiary sector of New Zealand
What is the tertiary sector or what are tertiary activities?
The tertiary sector in New Zealand encompasses services that enhance productivity and meet needs through knowledge and time. Key activities include healthcare, education, banking, tourism, transportation, telecommunications, and media production. These services contribute significantly to the country’s economy and well-being.
Notably, New Zealand’s tourism industry is a vital economic driver, contributing significantly to its GDP. With an impressive 3,888,000 annual arrivals and a tourist-to-population ratio of 0.7588, the country attracts visitors from around the world. Popular destinations like Queenstown and Milford Sound, renowned for their breathtaking natural beauty, play a crucial role in this thriving sector.
Another example of tertiary economic activity is the mobile cellular economic sector, with approximately 5.9 million subscriptions, supporting technological growth by enhancing connectivity and fostering innovation across industries.
Military Activities and Economic Sectors of New Zealand
The military is a key example of many economic activities in a country. In New Zealand, the military supports the primary sector by using resources for defense. It also plays a role in the secondary sector through the manufacturing of military equipment. The tertiary sector includes various services the military provides, while the quaternary sector focuses on military research and development. Lastly, the quinary sector involves high-level decision-making and strategy.
In 2023, New Zealand’s military expenditure was 3,029 million US dollars, which is about 1.18% of its GDP. The active military force consists of 9,000 personnel, resulting in 2.5 active military members per 1,000 people in the country.
International Trade of New Zealand
Import Activities of New Zealand
New Zealand’s import activities are of high importance, with total imports in 2023 reaching $50.47 billion, accounting for 29.56% of the country’s GDP.
New Zealand’s key import partners are China (21%), Australia (14%), US (8%), South Korea (7%), and Singapore (6%). The country imports refined petroleum, cars, plastic products, garments, and trucks.
Exports Activities of New Zealand
In 2023, New Zealand’s total exports amounted to $42,170,322,391.25, representing 24.24% of its GDP. With export activities accounting for a medium-high percentage of GDP, they play a significant role in the country’s economy.
New Zealand’s export activities are diverse, with top partners like China, Australia, US, Japan, and South Korea. Key commodities include milk, beef, wood, sheep and goat meat, and butter.
New Zealand economy challenges in 2024
New Zealand, a high-income Pacific island economy, faces challenges in 2024. Slow recovery from post-COVID recession, fiscal deficits, low productivity, and reducing greenhouse gas emissions are pressing issues. The country heavily relies on the Chinese market for exports, making economic stability a priority.
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