new zealand Flashcards
(15 cards)
exemplar - IR
Changes in ir = significant impact on export-driven economy(agricultural sector - relies heavily on dairy and meat products) low IR –>
weaken the New Zealand dollar, making exports like concentrated milk ($6.28bn) and frozen bovine meat ($2.45bn) = more competitive in key markets such as China and the USA = boost economic growth and improve the country’s trade balance, which is currently in deficit (-6.9% of GDP). Lower borrowing costs also encourage investment in the agricultural sector, supporting productivity and long-term sustainability.
EV - high IR = control inflation borrowing expensive = high costs for farmers + exportes = NZ dependence on agriculture, fluctuations in global commodity prices can further strain the economy + combined with high shipping costs due to its geographic isolation
exports
Concentrated Milk ($6.28bn)
Butter ($2.54bn)
Frozen Bovine Meat ($2.45bn)
countries - export
China ($12.3bn)
USA ($5.42bn)
Australia ($5.2bn)
import
Refined Petroleum ($6.99bn)
Cars ($4.22bn)
Gas Turbines ($1.53bn)
countries - import
China ($10.2bn)
Australia ($5.46bn)
USA ($4.75BN)
landlocked?
Not landlocked with any countries - connected to Pacific Ocean and Tasman Sea
economic growth
-1.5% annual growth rate
inflation
2.2%
current account
- 6.9%
interest rates
3.75%
budget deficit
39.3%
unemployment
5.1%
georgraphical isolation
isolated from major global markets (geographic barriers causes challenges in trade = high shipping costs + delays in the supply chain
vulnerability to natural disasters
prone to natural disasters, like earthquakes = disrupt economic activity (rebuilding costs + temporary decline in tourism)
dependence on agriculture
heavily relies on meat and dairy exports but fluctuations in global commodity prices can affect the economy negatively)
