Global Economic Crisis and New Zealand

Global Economic Crisis and New Zealand

Introduction

The economy of New Zealand as a developed country is prosperous, based primarily on the tertiary sector including tourism, even if the primary sector through the agriculture and mining sector, plays a more important role than in other developed countries. The country is the 52th largest economy

They are largely the result of significant reforms liberal undertaken by successive governments in the early 1980s . The two islands in New Zealand are all populated by 4 million inhabitants. The GDP of the island state approaching 92 billion, giving an average income of about $ 23 000 per capita. New Zealand is part of the Asia Pacific Economic Cooperation (APEC), the Organization for Economic Cooperation and Development (OECD) and World Trade Organization (WTO).

Discussion

The global economic crisis is a temporal phenomenon which we can rarely escape. For a decade, we lived near a dozen recessions which have had a significant impact globally.

An economic crisis is defined as follows: An economic crisis is characterized by a strong reversal of the economic situation of a country, a nation, or a larger geographic area. Moreover, economists consider that a country is in financial crisis and economic growth when the latter is negative for two consecutive quarters.

Although today the greatest economists working in government agencies, are all that is in their power to prevent an explosion of the economy, economic factors make it difficult to avoid disasters leading to potential crises or economic or financial crises such as the one currently raging in the eurozone.

Exports of the two main Pacific nations are declining due to the economic crisis, especially New Zealand who last year filed for recession, while Australia sees stagnation in growth. But contrary to what happens with Asian countries, their economic problems may not affect significantly to Chile.

The international credit crunch following the financial system crisis has reduced global trade, so that exporting countries, such as Chile, Australia and New Zealand are diminished their shipments, but lucky for her Main destinations of Asia Pacific nations, while its imports have fallen have seen their economies fall, at least the larger ones.

With a negative growth of 0.3% in the first quarter and 0.2% in the second, New Zealand declared itself in recession, where in addition to external influence also suffered a decline in domestic consumption and low agricultural production due to drought. The rest of the year the situation tended to remain, thus aggravating the situation even brought down the government of Helen Clark.

It is true that the level of official development assistance (ODA) from New Zealand declined between 2008 and 2009, but the Government is committed to increasing the level of this support. In 2009-2010, the level of ODA New Zealand stood at $ 474 million and the Government is committed to bring to $ 620 million, she said.

With regard to unemployment and the number of people receiving social assistance in this respect, in 2007, fewer than 3,000 people were receiving unemployment ...