When many expats look towards moving to a different country the main question on their minds seems to be “What has this country got which is special?”.  New Zealand is one of those countries where you should really ask “What does this country not have which makes it special?”.  New Zealand is a country which has one of the lowest crime rates of the developed world, a place where the police do not carry guns, and offers an unpolluted environment, low rates of poverty and a health service which can compete with the UK’s renowned NHS.

While often discussed as secondary to neighbouring Australia (which is actually 2000 km away) New Zealand does not get the exposure and credit which it deserves.  In general terms , the standard of living is on a par with European counterparts although the actual cost of living is much less.  Even though the property market has shown some growth over the last few years, there is perceived to be very good long term value.

The culture of the country tends to revolve around the Maori tribes of old, who still play a very active role in the communities of New Zealand, although a vast majority of today’s population are of European descent.  Indeed the Queen of the UK still reigns over the country, as New Zealand is a strong part of the British Commonwealth.  While the New Zealand has over the years attracted a vast number of British and Irish expats , the authorities are still committed to increasing the country’s population by some 1% a year through a fairly flexible immigration policy.

The education and health service are second to none , with New Zealand reporting a very impressive 99.9% literacy rate.  The country also has a well developed state welfare system which is probably a trait of the strong connection with the United Kingdom.  All in all New Zealand offers a mixture of climates, cultures, a law abiding society and a variety of employment and investment opportunities. 

 Contents: Economy in New Zealand | Prospects in New Zealand | New Zealand Facts

Economy in New Zealand

As you would expect from a country which offers vast plains of open land, New Zealand is heavily dependent on agriculture and in particular exports to all areas of the globe.  Currently the country exports around 28% of the total output from the economy, with major trade partners including Australia (21%), US (14%), Japan (10%) and UK (5%).  This strong exposure to both exports and the field of agricultural products has left the country heavily exposed to both commodity prices and currency swings.

While the economy used to be highly regulated by the authorities with a very much hands on approach, this was changed some 30 years ago with the promotion of a free-market - with very limited government intervention.  The first years of converting to a free-market were fairly traumatic with unemployment rising to over 10% as businesses adjusted to the new environment.  It is safe to say that the free-market economy is very much alive in New Zealand, and one of the main reasons for the country’s recent economic growth.

Historically New Zealand has suffered from a “brain drain” since the 1970s, with many nationals emigrating to places such as the UK where there were similar cultural traits.  However, this “brain drain” has been reversed and the last few years have seen a net immigration of professionally qualified foreign nationals.  These new skills have helped to create a more rounded economy, although the emphasis in agriculture is still very strong.  After a period of sustained growth, the economy is expected to slow over the next couple of years with growth rates of around 2% per annum expected.

New Zealand has a relatively standard income tax system with rates ranging from 0% to 39% on a sliding scale, with corporation tax in the region of 33%.  Research has shown that the New Zealand population feel that they get good value for money from the many state services supported by tax revenues.

Prospects in New Zealand

While often overshadowed by more prominent countries in the region, New Zealand has more to offer than people may have imagined.  The relative isolation of the country (in distance terms) has helped to control the crime trends, with gun and violent crimes in particular very rare in New Zealand.

The relatively safe society is further enhanced by a relaxed way of life, beautiful scenery and an economy that has shown substantial growth over the last few years.  Property prices are relatively good value, unemployment is low and the government have been spearheading a long term campaign to attract more foreign nationals.  

To many, New Zealand offers the perfect country in which to relocate.

Key Facts on New Zealand:

Bordered by New Caledonia, Fiji and Tonga (with Australia some 200 km away)

Food: Traditional Maori dishes including “Maori Hangi”

Temperature: Sub zero to 30C

Industries: Agricultural products

Education: 12 years compulsory education

Health: Life expectancy 79 years