NZL New Zealand profile

New Zealand operates as a constitutional monarchy with a parliamentary democracy. Government is formed by the prime minister and cabinet, and parliament uses mixed member proportional representation, which leads to coalition or confidence and supply arrangements that shape policy timelines. The system supports plural voices and maintains strong public services, but policy making can be slow when parties disagree and reform depends on coalition agreement. Treaty obligations with Maori under the Treaty of Waitangi frame governance, rights, and resource management, driving settlements and representation debates. Local government handles planning, housing, and environmental management, often facing capacity constraints and funding pressures in growing urban areas. Overall governance shows stable institutions and transparency, yet delivery can be uneven across regions and social groups.

Colonial history Colonized by British and settled by Europeans in the 19th century
Former colonizer United Kingdom
Government type Parliamentary representative democratic monarchy
Legal system Common law system based on English law
Political stability Generally stable, but has periodic political debates

The economy remains outward looking with a strong emphasis on agriculture and services. Primary sectors such as dairy, meat, forestry, and tourism contribute significantly, while information technology and creative industries show growing importance. Exports and proximity to major markets support resilience, though dependence on a narrow set of industries exposes the economy to external shifts and climate risk. Productivity growth is uneven and wage progression does not always match living costs, contributing to affordability pressures. Policy aims to balance environmental regulation with growth, including land and emissions considerations that influence farming and land use. Trade policy seeks regional integration and access to markets, but negotiations and regulatory alignment can complicate strategic planning. Public investment in research, innovation, and infrastructure seeks to lift competitiveness, with results that vary by sector and region.

Currency name New Zealand Dollar (NZD)
Economic system Mixed economy
Informal economy presence Limited presence compared to formal economy
Key industries Tourism, agriculture, manufacturing, services
Trade orientation Export-oriented economy

New Zealand features diverse geography including coastlines, mountains, forests, and volcanic areas. The environment supports high biodiversity with endemic species, but invasive species, habitat loss, and land use pressures threaten ecosystems and water quality. Climate change adds risks for weather patterns, sea level rise, fisheries, and agricultural productivity, requiring adaptation across communities. The energy mix emphasizes renewable resources such as hydro and geothermal, contributing to a lower carbon profile, though transmission and reliability require ongoing attention. Land use policy and conservation programs strive to balance farming, forestry, and recreation with biodiversity preservation, under a regulatory framework that involves central and regional authorities and Maori partnerships. Climate adaptation and disaster resilience require attention due to geologic hazards and coastal exposure.

Bordering countries None (island nation)
Climate type Temperate maritime
Continent Oceania
Environmental Issues Deforestation, pollution, biodiversity loss
Landlocked No
Natural Hazards Earthquakes, volcanic eruptions, floods
Natural resources Timber, natural gas, coal, hydroelectric power
Terrain type Mountainous and coastal plains

Demographics in New Zealand are diverse due to migration and a youthful labor force, shaping culture and social policy. Social outcomes show strong public support for welfare and health systems, yet inequality and housing affordability remain pressing challenges in urban centers. Health services are accessible but capacity and wait times in some areas drive disparities. Education performs well by international benchmarks, but gaps persist in rural regions and among Maori communities in access and outcomes. Maori language and culture gain visibility in policy and institutions, with ongoing treaty settlement processes and efforts toward self determination in education and health. Social cohesion benefits from strong community networks, but crime, mental health, and poverty cycles require targeted policy responses. Progress in gender equality and minority rights continues, though pay gaps and leadership representation persist in certain sectors.

Cultural heritage Māori culture, European influences, diverse immigrant communities
Driving side Left
Education system type Public education with compulsory schooling until age 16
Ethnic composition European (Pākehā), Māori, Asian, Pacific Islander
Family structure Nuclear families are common, with extended families also significant
Healthcare model Publicly funded healthcare system
Major religions Christianity, Buddhism, Hinduism, Islam
Official languages English, Māori, NZ Sign Language

Transport networks rely on roads and rail with urban congestion and maintenance needs, while freight and passenger flows depend on ports and airports with varying efficiency. Rural and regional connectivity challenges persist for both roads and digital services, affecting accessibility and productivity. Telecommunications infrastructure has expanded with improving broadband and mobile reach, though rural areas lag in digital access and service quality. The technology sector shows growth in digital services, biotech, and creative industries supported by universities and research institutions, but private investment and scale vary. Public investment targets modernization of energy, water, and transport systems, including grid upgrades and expansion of renewable capacity. Cybersecurity, data governance, and digital literacy are increasingly prioritized across government and industry. Overall, adoption of technology proceeds unevenly, reflecting regional disparities and differences in sector readiness.

Internet censorship level Low
Tech innovation level Moderate, with growing emphasis on technology and startups
Transport system type Developed road, rail, and air transport systems

Development indicators

Indicator Year Value Rank 5Y Rank Change
Military expenditure (current US$) 2023 3,029,024,715 53 -2
Political Stability and Absence of Violence/Terrorism 2023 1.36 8 +5
Regulatory Quality 2023 1.91 4 0
Rule of Law 2023 1.71 10 +5
Unemployment, total (% of total labor force) 2023 3.73 59 -22
Birth rate, crude (per 1,000 people) 2023 10.9 143 -3
Death rate, crude (per 1,000 people) 2023 7.23 94 -17
Exports of goods and services (% of GDP) 2023 23.7 126 -1
GDP per capita (current US$) 2024 48,747 25 -6
GDP per capita, PPP (current international US$) 2024 55,094 36 -1
High-technology exports (current US$) 2024 840,956,108 15 -44
Hospital beds (per 1,000 people) 2021 2.66 26 -32
Imports of goods and services (% of GDP) 2023 26.7 136 -11
Inflation, consumer prices (annual %) 2024 2.92 83 -29
Life expectancy at birth, total (years) 2023 83 22 -9
Mortality rate, under-5 (per 1,000 live births) 2023 4.7 135 -5
Net migration 2024 18,766 39 +17
Patent applications, residents 2021 330 49 +17
Population, total 2024 5,338,500 121 0
Prevalence of undernourishment (% of population) 2022 2.5 91 +1
Renewable energy consumption (% of total final energy consumption) 2021 28.9 75 +3
Research and development expenditure (% of GDP) 2021 1.47 26
Foreign direct investment, net inflows (% of GDP) 2024 1.21 71 -65
Current account balance (% of GDP) 2024 -6.14 94 -14
Level of water stress: freshwater withdrawal as a proportion of available freshwater resources 2021 8.05 102 +3
Total greenhouse gas emissions excluding LULUCF per capita (t CO2e/capita) 2023 16.1 17 0
Current health expenditure (% of GDP) 2022 10 26 -9
Domestic general government health expenditure per capita, PPP (current international US$) 2022 4,236 20 0
Physicians (per 1,000 people) 2022 3.57 12 -21
Suicide mortality rate (per 100,000 population) 2021 11.9 47 +2
Individuals using the Internet (% of population) 2023 96.2 15 -5
Control of Corruption 2023 2.08 4 +1
Government Effectiveness 2023 1.53 17 +3
Logistics performance index: Quality of trade and transport-related infrastructure (1=low to 5=high) 2022 3.8 8

Demography and Health

New Zealand's population stands at about 5.34 million in 2024, placing it around 121st in the world by size. The country benefits from steady net migration, with approximately 18,766 people moving in during 2024, helping to offset aging trends and sustain the labor force. Life expectancy at birth is high, at 83.0 years in 2023, reflecting strong health outcomes and broad access to medical services. The birth rate is 10.9 per 1,000 people in 2023, and the death rate is 7.23 per 1,000, signaling a modest natural increase alongside migration-driven population dynamics. Under-five mortality is comparatively low at 4.7 deaths per 1,000 live births (2023).

Health system capacity is robust: physicians average 3.57 per 1,000 people (2022), and hospital beds average 2.66 per 1,000 people (2021), indicating a well-resourced provision of care. Current health expenditure equals about 10.0% of GDP (2022), with domestic general government health expenditure per capita at PPP around US$4,236 (2022), underscoring strong public investment in health services. Nutritional status remains sound, with a prevalence of undernourishment of 2.5% (2022), though mental health challenges are highlighted by a suicide mortality rate of 11.9 per 100,000 people (2021), a statistic many countries monitor as part of broader public health planning. On digital access, almost all households have internet connectivity, with 96.2% of the population online (2023). These health and demographic indicators collectively support a high standard of living and resilient social systems.

From a labor perspective, unemployment is relatively low at 3.73% (2023), suggesting a tight labor market alongside strong public services. The population's age structure and migration patterns imply ongoing demand for health and social services, opportunities for healthcare innovation, and a continued emphasis on qualitative outcomes such as health equity, mental health, and preventive care.

Economy

New Zealand exhibits high income levels with a GDP per capita of US$48,747 in 2024 (current prices), placing it around 25th in the world by that metric. On a purchasing power parity basis, GDP per capita is US$55,094 (2024), illustrating a strong standard of living relative to many peers. The economy is diversified, with high-technology and knowledge-intensive activities contributing to growth. Exports of goods and services account for about 23.7% of GDP (2023), while imports represent roughly 26.7% of GDP (2023), indicating an open, relatively balanced trade profile that supports consumer choice and productive capacity.

The nation sustains a current account deficit of about 6.1% of GDP in 2024, reflecting a wide range of external linkages—such as capital imports and service trade—consistent with a small, open economy that relies on external demand and investment. Foreign direct investment, net inflows, stand at about 1.21% of GDP (2024), underscoring a modest but positive role for international capital in financing domestic activity. Research and development spending amounts to 1.47% of GDP (2021), a solid but not leading share, indicating ongoing emphasis on innovation but room for growth relative to global leaders. Inflation remains moderate at 2.92% in 2024, contributing to price stability in both households and business planning.

New Zealand's economy benefits from a high GDP per capita and a strongly educated workforce. The country allocates significant resources to health, education, and public services, supporting productivity and long-run competitiveness. The military expenditure in 2023 was about US$3.03 billion, a small share of GDP typical for a country with a security-focused but limited defense footprint. While the economy enjoys dynamism, the openness to trade and investment means it remains sensitive to global demand cycles and exchange rate movements, reinforcing the importance of prudent macroeconomic management and structural reforms to sustain growth and resilience.

Trade and Investment

Trade plays a central role in New Zealand's economic model. Exports of goods and services amounted to 23.7% of GDP in 2023, while imports represented 26.7% of GDP, highlighting a highly open economy with a strong services and goods trade footprint. The country also demonstrates a specialization in high-value, technology-intensive exports, as evidenced by high-technology exports totaling about US$841 million in 2024, a relatively high level of sophistication by international standards (ranked 15th globally). Domestic innovation is visible in patent activity, with 330 resident patent filings recorded in 2021 (rank 49), indicating a continued emphasis on protecting and leveraging new ideas in the economy.

New Zealand attracts foreign capital, with net inflows of FDI at about 1.21% of GDP in 2024, reflecting ongoing investor confidence in the country’s business climate and regulatory framework. The economy benefits from a skilled labor force and favorable conditions for cross-border commerce, but the trade balance remains nuanced because of the reliance on imports for energy, machinery, and intermediate goods that support export-oriented sectors. Net migration, at 18,766 in 2024, helps sustain labor supply and skills in the economy, particularly in sectors like construction, health, and technology. Overall, the investment environment combines a stable macroeconomy, competitive regulatory quality, and an openness that supports trade-led growth, while continuing to balance external vulnerabilities in a global demand cycle.

Governance and Institutions

New Zealand scores strongly on governance indicators, reflecting a robust institutional framework. Political stability and absence of violence/terrorism stand at 1.36 in 2023, with a relatively high rank of 8, signaling low risk of disruptive domestic instability. Regulatory quality is notably high at 1.91 (rank 4), while the rule of law scores 1.71 (rank 10), indicating effective legal institutions, predictable regulatory environments, and strong contract enforcement. Control of corruption is also strong, at 2.08 (rank 4). Government effectiveness registers at 1.53 (rank 17), suggesting reliable public administration capable of delivering public goods and implementing policy decisions efficiently.

These governance strengths underpin New Zealand's business climate, support credible anti-corruption measures, and create conditions that foster investment, innovation, and social inclusion. The strong regulatory and legal environment complements high levels of transparency and accountability, helping to sustain investor confidence and enable long-term planning across both public and private sectors.

Infrastructure and Technology

New Zealand demonstrates advanced digital connectivity and efficiency in trade-related infrastructure. Internet usage is pervasive, with 96.2% of the population online in 2023, reflecting widespread digital access and the potential for digital economy growth. The Logistics Performance Index, measuring quality of trade and transport infrastructure, stands at 3.8 (2022) on a 1-to-5 scale, indicating high-quality logistics and well-developed trade facilitation relative to many peers (rank 8). Research and development activity supports a knowledge-based economy, with R&D expenditure at 1.47% of GDP in 2021 and resident patent activity at 330 filings in 2021, suggesting ongoing innovation but with potential for further acceleration to translate discoveries into commercial outputs.

Healthcare and scientific capacity further support infrastructure development and technology adoption. The country ranks highly in the intensity of human capital and connectivity, with a labor force that includes more than 5 million residents and strong education systems that feed into high-tech sectors. The combination of efficient logistics, strong governance, and digital inclusion positions New Zealand to capitalize on global value chains that demand reliable infrastructure, prompt service delivery, and innovation-driven growth.

Environment and Sustainability

New Zealand faces environmental challenges and opportunities consistent with a small, resource-rich economy. Total greenhouse gas emissions per capita exclude land use, land-use change, and forestry (LULUCF), at 16.1 tonnes CO2e per person in 2023, placing the country among higher per-capita emitters in some comparisons but with ongoing decarbonization efforts. Renewable energy accounts for 28.9% of total final energy consumption in 2021, reflecting a significant contribution from non-fossil sources alongside continued growth in hydro, wind, and other renewables. The level of water stress, measured as freshwater withdrawal as a share of available resources, is 8.05% in 2021, signaling moderate water resource pressure and the importance of sustainable water management in agriculture and urban use. The prevalence of undernourishment remains low at 2.5% of the population (2022), underscoring food security and resilient agricultural systems. The country’s environmental trajectory is shaped by efforts to balance economic activity with emissions reductions, adaptive capacity, and sustainable resource use.