Market Overview

New Zealand offers U.S. companies access to a wealthy, sophisticated market characterized by a transparent, open business environment and a stable democratic system. Known for its high rankings in business integrity and honesty, New Zealand’s small market size of around 5 million people is often offset by these strengths.  

After a strong post-pandemic recovery, New Zealand’s economy has slowed, with high interest rates driving up the cost of living. Between May and August 2024, about 6,000 public sector employees—primarily in Wellington—were laid off as the newly elected government implemented spending cuts. The unemployment rate for the quarter ending December 2024 was 5.1%.  Inflation was 2.2% for the year ending December 2024. Climate change is a strategic priority for both public and private sectors due to its perceived impact on the economy and society.

Exports of goods and services significantly contribute to New Zealand’s GDP.  New Zealand’s economy is driven by agricultural exports, including dairy (the largest export at 28% of the total), meat, forest products, fruit, vegetables, and wine.  The United States is New Zealand’s second largest export market and third largest import supplier after China and Australia.  Fluctuations in the NZ/US exchange rate (averaging 1 NZ$ = 0.6054 USD$ in 2024) impact returns.  In 2024, exports to the United States totaled US$4.5 billion, up 2% from the previous year, and two-way trade in goods hit a record high of US$10.1 billion. 
The United States is New Zealand’s third-largest trading partner after China and Australia, with which New Zealand has Free Trade Agreements (FTAs).  (New Zealand does not have an FTA with the United States.)  The U.S. exported US$5.6 billion in goods to New Zealand in 2024, primarily agricultural machinery, information and communications technology (ICT), and healthcare products.