New Zealand proper

Aotearoa New Zealand


Anthem God Defend New Zealand God Save the Queen


Capital	Wellington
Monarch
- From 1952	Elizabeth II
Governor-General
- From 2006	Sir Anand Satyanand
Prime Minister
- From 2008	John Key

Legislature	House of Representatives

History
- May 25, 1854	1st Parliament
- September 26, 1907	Dominion
- December 11, 1931	Statute of Westminster
- November 25, 1947	Statute of Westminster Adopted
- December 13, 1986	Constitution Act 1986

Commonwealth accession	December 11, 1931

Area	268,021 km²

Population
- 2010	4,393,500
Density	16.3/km²

GDP	2010 (PPP)
- Total	US$ 126.1 billion
- Per capita	US$ 28,722

Currency	New Zealand dollar

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New Zealand is a parliamentary democracy in Oceania, and a part of the Realm of New Zealand.

Background

The Polynesian Maori reached New Zealand in about A.D. 800. In 1840, their chieftains entered into a compact with Britain, the Treaty of Waitangi, in which they ceded sovereignty to Queen Victoria while retaining territorial rights. In that same year, the British began the first organized colonial settlement. A series of land wars between 1843 and 1872 ended with the defeat of the native peoples. The British colony of New Zealand became an independent dominion in 1907 and supported the UK militarily in both World Wars. New Zealand's full participation in a number of defense alliances lapsed by the 1980s. In recent years, the government has sought to address longstanding Maori grievances.^[1]

Economy

Over the past 20 years the government has transformed New Zealand from an agrarian economy dependent on concessionary British market access to a more industrialized, free market economy that can compete globally. This dynamic growth has boosted real incomes - but left behind some at the bottom of the ladder - and broadened and deepened the technological capabilities of the industrial sector. Per capita income rose for ten consecutive years until 2007 in purchasing power parity terms, but fell in 2008-09. Debt-driven consumer spending drove robust growth in the first half of the decade, helping fuel a large balance of payments deficit that posed a challenge for economic managers. Inflationary pressures caused the central bank to raise its key rate steadily from January 2004 until it was among the highest in the OECD in 2007-08; international capital inflows attracted to the high rates further strengthened the currency and housing market, however, aggravating the current account deficit. The economy fell into recession before the start of the global financial crisis and contracted for five consecutive quarters in 2008-09. In line with global peers, the central bank cut interest rates aggressively and the government developed fiscal stimulus measures. The economy posted a 1.7% decline in 2009, but pulled out of recession late in the year, and achieved 2.1% growth in 2010. Nevertheless, key trade sectors remain vulnerable to weak external demand. The government plans to raise productivity growth and develop infrastructure, while reining in government spending.^[2]