Exports and technology lead changing economy

Many key business sectors in New Zealand are evolving rapidly in response to the opportunities of the global economy and the digitisation of economic and social activities, according to two new Government reports released today.

Economic Development Minister Steven Joyce today released the last two reports in the New Zealand sectors report series: the New Zealand Sectors Report 2014, which gives a comprehensive overview of New Zealand’s economic performance; and the Knowledge Intensive Services Report, which has a special focus on professional, scientific and technical services and highlights the critical role the people in these sectors play in disseminating knowledge and facilitating growth, innovation and exports for New Zealand.

“These two latest reports show the successful adaptation of our trading businesses to the changes of the past 40 years, and more recently the post-GFC environment,” Mr Joyce says.

"It is actually quite phenomenal how the New Zealand export sector has successfully adapted to the growth of Asia and the strength of the New Zealand dollar.

“Less than 40 years ago the UK took approximately 50 per cent of all New Zealand’s exports; today it takes just 3 per cent and China, Australia and the US are our biggest trading partners.

“Australian businesses are responsible for 63 per cent of all foreign direct investment in New Zealand, while half of all our outward direct investment is in Australia. A growing number of New Zealand businesses are truly trans-Tasman in scale and reach.

“Dairy continues to be our biggest export industry, but other large New Zealand exports include technology products, oil and gas, processed foods, wine, education, and IT services.”

Mr Joyce says as well as global forces, change in New Zealand is being driven by the growth of Auckland, the continuing impact of the Christchurch earthquakes, and an increased number of experienced entrepreneurs, business owners, governance boards and Iwi Incorporations committed to growing large New Zealand based international businesses.

“New Zealand is a young country still developing its competitive advantages. Like other developed countries most of the job growth is in the services industry,” Mr Joyce says.

“All of the actions in the Business Growth Agenda are about removing barriers and encouraging competitive businesses from across the economy, including the services sector, to succeed on the world stage.”

The Knowledge Intensive Services Report and the New Zealand Sectors Report 2014 are the last two in a series of seven Government reports on key sectors of New Zealand’s economy. Together they make up the New Zealand Sectors Report Series.

The reports are available at: http://www.mbie.govt.nz/what-we-do/business-growth-agenda/sectors-reports-series

ENDS

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