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New Zealand Country Economy Analysis
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NEW
ZEALANDOpen for Business
SOUTH PACIFIC BUSINESS ENVIRONMENT MBA 434 - 2013
MBA 434: South Pacific Business Environment - 2013
Paula
Avinesh
Gaythri
Vinita
Tuesday 5pmGROUP
MBA 434: South Pacific Business Environment - 2013AGENDA
COUNTRY PROFILE ECONOMIC OVERVIEW EXPORTS / IMPORTS TOURISM TRADING PARTNERS BUSINESS DEVELOPMENT POLICY GLOBAL FINANCIAL CRISIS BUSINESS ENVIRONMENT INVESTMENT EASE OF DOING BUSINESS BUSINESS CHALLENGES RECOMMENDATIONS CONCLUSION REFERENCE
Māori nameCapitalLargest city Population Area Currency Geography
AotearoaWellingtonAuckland4,242,048269,652 sq kmNew Zealand dollarNorth & South Islands
COUNTRY PROFILE
GovernmentUnitary parliamentary constitutional
Monarch QueenElizabeth II
Governor-General Sir JerryMateparae
COUNTRY PROFILE
Prime Minister John Key
ETHNIC GROUPS
67%
15%
10%7%
1%
European / other
Māori
Asian
Pacific peoples
Middle Eastern Latin-American, African
Official Languages
95.9% English4.2% Māori0.6% NZ Sign Language
NZ Cities Population2013
Auckland 1,397,300Wellington 395,600
Christchurch 375,900
Hamilton 209,300
Napier-Hastings 125,000
Tauranga 122,200Dunedin 118,400
Palmerston North 83,300
Nelson 61,100Rotorua 56,100
New Plymouth 53,000
Whangarei 52,500Invercargill 49,000
Whanganui 39,500
Gisborne 34,40
CLIMATECool temperate to warm temperate with a strong maritime influence
Snow - South Island and southern parts of the North Island
Maximum temperatures are normally in the mid to low 20 (°C) over most of the country.
INFRASTRUCTURE energy from renewable energy, primarily
hydroelectric power and geothermal power
Bus services
private car
Railways
Six international airports
Telecommunications
ENTERTAINMENT & SPORTS MUSIC
blues, jazz, country, rock and roll and hip hop
SPORTS Rugby , Golf, netball, tennis and cricket
NEW
ZEALAND Open economy that works on free market principles
Very export-driven competitive economy
ECONOMIC OVERVIEW Total Year end
Nominal GDP (NZ$million) $208,688 31-Dec-2012
Nominal GDP growth 2.5 31-Dec-2012
Nominal GDP per capita (NZ$) $45,769 31-Mar-2012
Real GDP (NZ$million) $142,774 31-Dec-2012
Real GDP growth (%) 1.5% 31-Dec-2012
Real GDP per capita (NZ$) $32,341 31-Dec-2012
CPI inflation 0.9 02-Feb-2013
Unemployment rate (%) 6.6% 02-Feb-2013
Total exports (NZ$million) $48,020 31-Dec-2012
Total imports (NZ$million) $53,740 31-Dec-2012
Trade surplus/deficit (NZ$million) -5,720 31-Dec-2012
INDUSTRY BY SECTORS Accommodation
Agriculture, horticulture, and forestry
Alcohol availability
Bioscience and biotechnology
Construction
Energy
Film and television
Imports and exports
Information communications and technology
Manufacturing and production
Retail trade
Tourism
Wholesale trade
EXPORTS - COMMODITIESCommodity NZ$ millions Year end
Milk powder, butter, and cheese 12,428 31-Dec-2012
Meat and edible offal 5,167 31-Dec-2012
Logs, wood and wood articles 3,160 31-Dec-2012
Crude oil 1,790 31-Dec-2012
Mechanical machinery and equipment 1,716 31-Dec-2012
Fruit 1,563 31-Dec-2012
Fish, crustaceans and molluscs 1,382 31-Dec-2012
Wine 1,218 31-Dec-2012
Electrical machinery and equipment 1,119 31-Dec-2012
Aluminium and aluminium articles 1,042 31-Dec-2012
EXPORTS - COMMODITIESCasein and caseinates 890 31-Dec-2012
Iron and steel and articles 874 31-Dec-2012
Preparations of cereals, flour and starch 917 31-Dec-2012
Precious metals, jewellery and coins 807 31-Dec-2012
Miscellaneous edible preparations 747 31-Dec-2012
Optical, medical, and measuring equipment 721 31-Dec-2012
Wool 717 31-Dec-2012
Wood pulp and waste paper 589 31-Dec-2012
Raw hides, skins, and leather 567 31-Dec-2012
Textiles and textile articles 560 31-Dec-2012
IMPORTSMain import commodities (2012) NZ$(million)
Petroleum and products 8,366
Mechanical machinery and equipment 6,071
Vehicles, parts, and accessories 4,882
Electrical machinery and equipment(1) 3,948
Textiles and textile articles 2,116
Plastic and plastic articles 1,685
Optical, medical, and measuring equipment 1,337
Iron and steel, and articles(1) 1,247
Total – all commodities 47,451
TOURISM
International tourism expenditure contributed $9.8 billion
Domestic tourism expenditure increased 2.4 %
Generated to GDP of $7.3 billion, or 3.7 % of GDP.
Additional $9.8 billion for tourism, or 5.0 % of GDP.
Employed 110,800 full-time equivalents or 5.7 % of total
employment in New Zealand.
Tourists generated $1.3 billion in GST revenue.
NEW ZEALAND TOURISM
TOP TRADING PARTNERSCountry
Exports NZ$
(million)
Imports NZ$
(million)
Total trade NZ$ (million)
Australia 10,848 7,369 18,217
China, People's Republic of 5,887 7,439 13,326
United States of America 3,997 5,026 9,023
Japan 3,441 2,921 6,362
Korea, Republic of 1,675 1,454 3,129
Singapore 813 2,163 2,976
United Kingdom 1,545 1,267 2,812
Germany 775 1,994 2,769
Malaysia 875 1,478 2,353
Thailand 732 1,330 2,062
Total trade 47,702 46,896 94,598
NEWZEALAND BRANDS
BUSINESS DEVELOPMENT POLICYSix key policy drivers:
A growth-enhancing tax system
Better public services
Support for science, innovation and trade
Better regulation, including regulation around natural
resources
Investment in infrastructure
Improved education and skills.
THE GLOBAL FINANCIAL CRISIS
Economic slow-down in global financial crisis 2008
2% decline in 2009
Achieved 1.7% growth in 2010
2% in 2011 and 3% in 2012
CRISIS-RECOVERY
Exports, trading partners Australia and China,
Strong Government accounts
Well-capitalised banking system
The strong terms of trade and the boost to GDP
from the rebuilding of Christchurch, have led to
a solid and on-going growth.
BUSINESS ENVIRONMENT Country Risk Rating
Australia DB1d (lowest risk)Hong Kong DB2a (low risk)Singapore DB2a (low risk)
New Zealand DB2c (low risk)Japan DB2d (low risk)
South Korea DB2d (low risk)Taiwan DB2d (low risk)
Malaysia DB3b (slight risk)China DB3d (slight risk)India DB3d (slight risk)
Indonesia DB4b (moderate risk)Philippines DB4b (moderate risk)
Thailand DB4d (moderate risk)Vietnam DB5b (high risk)
Bangladesh DB5c (high risk)
New Zealand ranked fourth safest economy in Asia-pacific region for Investment
BUSINESS ENVIRONMENT
Reduced corporate income tax rate
No payroll tax
No social security tax
No capital gains tax.
low-inflation environment
Independent monetary policy
Focus on price stability
BUSINESS ENVIRONMENT New Zealand FREE TRADE AGREEMENT
China Australia Vietnam Philippines Cambodia Brunei Indonesia Hong Kong Myanmar Thailand Malaysia Laos Singapore Chile
CLEAN TECHNOLOGYNew Zealand an innovator in the development of energy, fuels, materials, and environmental technologies necessary to create a sustainable low carbon global economy
WHY INVESTMENTSafety, stability, ingenuity, and proximity to Asia's booming economies are just a few of the reasons to invest in New Zealand.
INVESTMENT ADVANTAGE
Safe and secure business environment
Ease of doing business
Cost of doing business
Simple tax system
Efficient, market-oriented economy
Access to other markets
INVESTMENT ADVANTAGEInnovative and entrepreneurial culture
Flexible immigration policies
Abundant resources
Transport and freight - world-class infrastructure
The Maori economy - Joint venture
developments
Banking - financial stability
Sophisticated telecommunications
EASE OF DOING BUSINESSTopics DB 2014
RankDB2013
RankChange in
Rank
Starting a Business 1 1 No change
Dealing with Construction Permits
12 11 -1
Getting Electricity 45 45 No change
Registering Property 2 2 No change
Getting Credit 3 3 No change
Protecting Investors 1 1 No change
Paying Taxes 23 21 -2
Trading Across Borders 21 19 -2Enforcing Contracts 18 18 No change
Resolving Insolvency 12 13 1
BUSINESS INCUBATORS
The ICEHOUSE, Auckland
E-Centre Massey, North Shore, Auckland
SODA Inc, Hamilton
The BCC, North
Creative HQ, Christchurch
Upstart , Dunedin
BUSINESS CHALLENGES
Climate Change
Global Financial Crisis
Barriers of entry
Natural Disaster (Earthquake)
High Competitive Economy
Currency rate and fluctuation
Culture and Languages
RECOMMENDATIONS
Focus on Economic development ; Export sector
Research & Development Business reallocation Evacuation Plan Innovation ecosystem Establish more Business Incubators
CONCLUSION
New Zealand is well established developed economy and has lot of business investment opportunities.
REFERENCE
• http://
www.newzealandnow.govt.nz/investing-in-nz/opportunities-outlook
• http://www.franchisingexpo.co.nz/
• http://www.nzte.govt.nz/en/invest/sectors-of-opportunity/
• http://www.newzealandnow.govt.nz/investing-in-nz/stability-security
• http
://www.forbes.com/sites/kurtbadenhausen/2012/11/14/new-zealand-top
s-list-of-the-best-countries-for-business
/
• http://www.customs.govt.nz/features/fta/pages/default.aspx
• http://data.worldbank.org/region/LDC
NEW
ZEALAND
SOUTH PACIFIC BUSINESS ENVIRONMENTMBA 434 - 2013
THANK YOU