Changes

In the statistical year ending September 2007, the economy grew 2.7%, an increase over the 2.2% growth rate in 2006. Household spending was up 3.4%, and investment in new housing was up 2.2%. The demand for new housing is in part driven by immigration, but the net increase in new arrivals has begun to slow. The net permanent long-term migration inflow to New Zealand in the year ending February 2008 amounted to 4,600, down from a net inflow of 13,200 in 2007. The net outflow to Australia was 29,600 in the year ending February 2008, reaching the highest level since 2001, when it was 30,000. New Zealand did not experience the slowdown in growth seen in many other countries following the terrorist events of September 11, 2001, and the subsequent fall in overseas share markets. The prolonged period of good economic growth led the unemployment rate to drop from 7.8% in 1999 to 3.2% as of December 2007.  

In the statistical year ending September 2007, the economy grew 2.7%, an increase over the 2.2% growth rate in 2006. Household spending was up 3.4%, and investment in new housing was up 2.2%. The demand for new housing is in part driven by immigration, but the net increase in new arrivals has begun to slow. The net permanent long-term migration inflow to New Zealand in the year ending February 2008 amounted to 4,600, down from a net inflow of 13,200 in 2007. The net outflow to Australia was 29,600 in the year ending February 2008, reaching the highest level since 2001, when it was 30,000. New Zealand did not experience the slowdown in growth seen in many other countries following the terrorist events of September 11, 2001, and the subsequent fall in overseas share markets. The prolonged period of good economic growth led the unemployment rate to drop from 7.8% in 1999 to 3.2% as of December 2007.  

In January of 2023, New Zealand's business confidence slumped to its worst since the 1970s due to higher interest rates, weaker demand and labor shortages.<ref>[https://finance.yahoo.com/news/zealand-business-confidence-slumps-worst-225738685.html New Zealand Business Confidence Slumps to Worst Since 1970s], Yahoo News syndicated from Bloomberg News, January 2023<ref>

In January of 2023, New Zealand's business confidence slumped to its worst since the 1970s due to higher interest rates, weaker demand and labor shortages.<ref>[https://finance.yahoo.com/news/zealand-business-confidence-slumps-worst-225738685.html New Zealand Business Confidence Slumps to Worst Since 1970s], Yahoo News syndicated from Bloomberg News, January 2023</ref>

In the past, New Zealand's economy has been helped by strong economic relations with Australia. New Zealand and Australia are partners in "Closer Economic Relations" (CER), which allows for free trade in goods and most services. Since 1990, CER has created a single market of more than 22 million people, and this has provided new opportunities for New Zealand exporters. Australia is now the destination of 20% of New Zealand's exports, compared to 14% in 1983. Both sides also have agreed to consider extending CER to product standardization and taxation policy. New Zealand has had a free trade agreement with Singapore since 2001. In July 2005, both countries joined with Chile and Brunei to form a Trans-Pacific Strategic Economic Partnership, liberalizing trade in goods and services between them. In April 2005, New Zealand initialed a free-trade deal with Thailand. In April 2008 New Zealand concluded a free trade agreement (FTA) with China and is negotiating an FTA with the Gulf Cooperation Council (GCC). New Zealand held its first round of the New Zealand-GCC FTA in Wellington in July 2007 with representatives from the Gulf states (Saudi Arabia, Kuwait, Bahrain, Qatar, the United Arab Emirates, and Oman).  

In the past, New Zealand's economy has been helped by strong economic relations with Australia. New Zealand and Australia are partners in "Closer Economic Relations" (CER), which allows for free trade in goods and most services. Since 1990, CER has created a single market of more than 22 million people, and this has provided new opportunities for New Zealand exporters. Australia is now the destination of 20% of New Zealand's exports, compared to 14% in 1983. Both sides also have agreed to consider extending CER to product standardization and taxation policy. New Zealand has had a free trade agreement with Singapore since 2001. In July 2005, both countries joined with Chile and Brunei to form a Trans-Pacific Strategic Economic Partnership, liberalizing trade in goods and services between them. In April 2005, New Zealand initialed a free-trade deal with Thailand. In April 2008 New Zealand concluded a free trade agreement (FTA) with China and is negotiating an FTA with the Gulf Cooperation Council (GCC). New Zealand held its first round of the New Zealand-GCC FTA in Wellington in July 2007 with representatives from the Gulf states (Saudi Arabia, Kuwait, Bahrain, Qatar, the United Arab Emirates, and Oman).