New Zealand market overview
With a population of 5.1 million, New Zealand is the world’s 48th largest economy with a GDP of $243.3 billion in 2021.
According to the World Bank, Doing Business Report 2020, New Zealand ranks first of 190 economies for the ease of doing business for the fourth year.
The economic and trade relationship between Australia and New Zealand is shaped by the Australia New Zealand Closer Economic Relations Trade Agreement (CER or ANZCERTA), which came into force in 1983. ANZCERTA is one of the world’s most open and successful free trade agreements. Two-way trans-Tasman merchandise trade has increased at an average annual rate of around eight per cent following its adoption.
Queensland and New Zealand
New Zealand is often viewed as an extension of the domestic market with similar market drivers and regulations making it an attractive first export market.
New Zealand was Queensland’s 12th largest merchandise trading partner (exports plus imports) in 2021. In 2020, foreign investment from New Zealand in Australia was valued at A$66,307 million and foreign direct investment (FDI) was valued at A$5,625 million (Source: ABS).
New Zealand and Queensland share a collaborative relationship with comparable populations, a unicameral political system, and export-oriented economies with solid manufacturing bases, services sectors, agriculture, and major tourism industries. Queensland has over 200,000 New Zealand born residents. This is highest per capita representation of any Australian State or Territory.
The New Zealand Government will focus on infrastructure as an important part of the COVID-19 economic recovery. The government has committed a NZ$57.3 billion program of infrastructure spending for the period 2021 to 2025 and reforming the Resource Management Act to simplify development approval processes.
Australian food and beverage products are well respected in New Zealand. Potential opportunities for Queensland companies have been identified in the healthy food and wellness products sub-category with a focus on products that are not locally produced, organic, gluten free and vegan goods. Healthy convenience is a growing trend – food to go and single portion packaging.
New Zealand is undergoing major reform which will create potential opportunities for Queensland business including:
- Water Reform: The three waters reform to merge all current water utilities (over 50) into 4 estimated at between $120 billion and $185 billion over the next 30 years.
- Regulator reforms for planning (The Resource Management Act 1991) will be repealed and replaced with three new acts: Natural and Built Environment Act, Strategic Planning Act and Climate Change Adaptation Act.
- Health reform replacing all 20 District Health Boards by one national organisation, Health New Zealand.
- Local government reform with the modernisation of New Zealand’s two-tier government structure.
- Healthy food and wellness products
- Health sector (innovation and partnerships in biotech)
- Queensland Government Statistician’s Office (QGSO)
- Austrade, Market Profile – New Zealand
- Austrade, Market Information Package for Australian education institutions
- DFAT, Market Insights New Zealand
- Doing Business 2020, World Bank Group publication