Economy
New Zealand’s economy is a market economy that depends heavily on trade.Australia，the European Union，the United States，China，South Korea and Japan are its major trading partners.It was the first developed country to sign a free trade agreement with China.The economy was largely agriculturally based as recently as about two decades ago.Agricultural and livestock production accounted for a substantial share of national income and more than 60％ of exports.Since 1984，the government has taken measures to restructure the economy，moving towards a more industrialized and market⁃based model that is internationally competitive.Today，New Zealand remains the world’s number one exporter of mutton and dairy products and number two exporter of wool，but the contribution of the agricultural sector as a whole to the national GDP has declined to 6％，while that of industry increased to 21％.Service industries are the main growth sectors of the national economy and account for 63％ of GDP in 2013.
New Zealand has limited mineral deposits apart from gold，coal，and iron.Biological resources are more important to the country’s economy than minerals.New Zealand’s pastoral industry is by far the most important pillar of its international trade.Food product contributed 55％ of the total value of exports in 2014.Forestry also plays a significant economic role;New Zealand has 8.1 million hectares of forest.The total percentage of forest cover reaches 30％.The trees are used mostly for timber and pulp，with the latter providing the basis for thriving paper industry.
The mountainous terrain and the abundance of rivers in the country have given New Zealand ample hydroelectric resources.Hydroelectric installations are everywhere，supplying the country’s needs for electricity at low cost.
New Zealand’s manufacturing sector is mainly concentrated in primary processing of raw materials.It employs about one fifth of the working population and supplies most of the domestic demand for consumer goods.
Service industry is by far the most important sector of the country’s economy.The country has a well developed tourist industry as its beautiful natural views attract many tourists from all over the world.It has a well developed transportation system，consisting of 11，000km of highway road，close to 4，000km of railroad，14 international ports and seven international airports.New Zealand’s banking system mainly consists of two British，two Australian and one domestic bank.These banks have branch networks that cover the whole country and provide the country with a full range of financial services.
New Zealand’s remoteness from the world’s major industrial and commercial centers have made foreign trade crucial to its economy.There are few countries in the world that have a higher ratio of exports to domestic production.But as the country’s exports are largely primary commodities and are not sufficiently diversified，they have met increasing competition on international markets.One major challenge for the New Zealand government has been to diversify exports and enhance the competitiveness of exported goods.In recent years，a large share of New Zealand’s traditional market in Great Britain has been lost to the European Union.The country’s heavy dependence on trade also leaves it especially vulnerable to downturns in the world economy.