Changes

Since 1984, government subsidies including for agriculture were eliminated; import regulations liberalized; tariffs unilaterally slashed; exchange rates freely floated; controls on interest rates, wages, and prices removed; and marginal rates of taxation reduced. Tight monetary policy and major efforts to reduce the government budget deficit brought the [[inflation]] rate down from an annual rate of more than 18% in 1987. The restructuring and sale of government-owned enterprises in the 1990s reduced government's role in the economy and permitted the retirement of some public debt. As a result, New Zealand is now one of the most open economies in the world.  

Since 1984, government subsidies including for agriculture were eliminated; import regulations liberalized; tariffs unilaterally slashed; exchange rates freely floated; controls on interest rates, wages, and prices removed; and marginal rates of taxation reduced. Tight monetary policy and major efforts to reduce the government budget deficit brought the [[inflation]] rate down from an annual rate of more than 18% in 1987. The restructuring and sale of government-owned enterprises in the 1990s reduced government's role in the economy and permitted the retirement of some public debt. As a result, New Zealand is now one of the most open economies in the world.  

 

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.