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The Government's approach was to restructure along several fronts and saw the introduction of legislation which:
1. Removed the statutory right of unions to represent all workers - individual contracts were introduced if that suited the parties.
2.The Government passed the Reserve Bank Act which required the Governor of the Reserve Bank to ensure inflation was not less than 0% and not more than 2%. This was later broadened to 0-3% in the late 1990s.
3. The Government created what is called the "Closer Economic Relations" agreement with Australia (our largest export market) which effectively created an almost seemless flow of goods and services across both economies (when you could get the Australians off their backsides).
4. The Government corporatised and then privatised most state utilities. Examples are Telecom Corporation, New Zealand Post, NZ Forestry Corporation, Air New Zealand, State Insurance, Government Printing, various ports and Tranzrail to name but a few.
With the election in 1999 of a centre-left Government there has been some return to more Government involvement in business along the lines of Tony Blairs so called 'Third Way' but there has been no real return to the failed economic policies of the 1970's and early 1980's despite there still being occassional calls for it - some from inside Parliament. Old habits die hard.
We have close ties with Australia. With the signing in 1989 of The Closer Economic Relations Treaty (CER) access for New Zealand companies to the large Australian market was theoretically masde easier and in large part successful. New Zealand manufacturers and entrepreneurs have taken full advantage of the opportunities presented with the Australian and New Zealand economies serving as "domestic" markets with each other in effect. The free flow of labour between the two countries is beneficial to both nations workers. During cyclical downturns in N.Z, our workers travel to Australia and when the Australian economy weakens the flow reverses.
GDP growth was around 3.5 % during the year 2000 and is projected to be 2.5 - 3% for 2001. The impact of the slowing global economy has seen a revision down of growth forecasts for 2002 with expectations of growth around the 2.5% level. There is no doubt that the level of growth during the past few years has put strain on the labour market with increasing skills shortages across a range of industries and sectors. Again however, the global slowdown is starting to feed through into a quieter job market in New Zealand at the current time.
Underlying inflation has been successfully managed within the statutory band of 0% to 3% (with a slight hiccup in late 2000 when it hit 3.2% as a direct result of oil price increases) and the Reserve Bank is charged with managing this. During most of the 1990’s inflation averaged slightly over 1.5% per annum but in the year ending March 1999 deflation occurred. This did not last with inflation around 1% for the year ending March 2000 and 3.2 % in the year ending December 2000. This is estimated to fall to under 2% by the end of this year.
Home mortgage bond rates have begun falling following reductions in wholesale rates after the attacks on the US in September. Most New Zealanders with “floating” mortgage interest rates are paying 7 – 7.2%, which are at rates not seen for nearly 40 years. The trend is for further possible falls with expectations of decreases of around 1% during the next 12 months as the world economy slows.
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Unemployment currently stands at 5.2% which gives New Zealand the 13th lowest rate of unemployment in the world (of which about one third is “skilled” unemployment). This was predicted to fall to under 5% by years end but is now thought more likely to stabilise around this level with higher rates of inward migration, New Zealanders returning home after the events of September 11 and fewer New Zelanders leaving to work overseas. With the economic uncertainty that abounds at present it is possible that unemployment will rise slightly as investment is deferred as our major trading partners economies slow eg Australia, the US and Asia.
New Zealanders have a reputation for entrepreneurial activity, and the economic growth that has been experienced has come about through the resourcefulness of its people.
Business confidence stable with most businesses confident about their own short term future even if they are worrying about everyone elses. Since September 11 it has taken a knock.
 How did 2001 treat New Zealand then?
The Governor of the Reserve Bank of New Zealand described the economy as being "favourably out of sync" with the rest of the world. In the face of global recession the New Zealand economy expanded at what is generally taken to be a sustainable, non-inflationary rate of around 2.5%.
Unemployment is the lowest it has been for 13 years at just over 5%
Monetary conditions are stimulatory after five interest rate cuts this year
Business and consumer confidence levels returned to their pre September 11 highs as the year drew to an end.
More people are immigrating to New Zealand than emigrating from it producing a stimulatory effect on the domestic economy.
Trade surpluses have pushed the trade defecit to its lowest level in 3 years (around 3.9% of GDP).
Export volumes grew 5.5% in the September quarter
 Cost of Living
We are often asked how expensive New Zealand is as a place to live. This is a difficult question to answer as peoples lifestyle expectations are different. For a refugee we are sure that cities like Auckland are very expensive. For Bill Gates it would be a steal. However what we can say is that in a recent survey of 131 cities Auckland was ranked as the 107th most expensive to live in (Wellington is apparently New Zealand's most expensive). We are cheaper than Nairobi if that means anything to you and one above Tashkent, about the same as Kuala Lumpur and Rio De Janeiro. By comparsion Sydney in Australia is 72nd, Melbourne 81st and Perth 94th.
Osaka by the way is the most expensive.
 A snapshot of life
Out of every $100 a New Zealander household earns, $23.90 goes on housing costs, such as mortgages or rent, maintenance and rates. Other costs associated with the running of the home, such as power, appliances, furniture and so on, take a further $12.80, food $16.50 and transport a further $15.90. You will see then that Mr and Mrs Average do not save very much!
Within New Zealand society there are of course those that earn a great deal of money and those that do not earn very much at all.
For the purpose of giving you an idea of how different groups spend their income each week, in the table below we define:
a low income household as one earning between $20,700 - $25,899; and
a medium income household as one earning between $40,600 and $51,099; and
a high income household as one earning $76,700 and $101,099
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ASCAN Consultants Limited, a world leader in Immigration Services, would be assessing your eligibility for Immigration to New Zealand and you would be informed accordingly.
more..
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The Queen is the constitutional head of the country and her role is fulfilled by an appointed Governor General. This appointment is made on the advice of New Zealand Ministers of the Crown and is for a term of 5 years.
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Like all Governments around the world, the New Zealand Government operates an immigration policy to achieve
social and economic goals through the temporary and permanent movement of people
and skills.Nowadays, the New Zealand Government is focusing more on migrants who can demonstrate they will add economic value to New Zealand and in late September 2001 announced changes to policy to reflect that shift. More on that below.
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How do I get a job in New Zealand if I’m not a resident? more.. |
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Alternatively for short term students taking courses of less than 36 weeks, a letter or certificate from a bank in New Zealand confirming sufficient funds for day to day living and the purchase of a return ticket or a letter from the educational institution confirming that accommodation and other living expenses are including as part of prepaid package (e.g. homestay) will be acceptable
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