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The economy of New Zealand is a highly developed free-market economy. It is the 52nd-largest national economy in the world when measured by nominal gross domestic product (GDP) and the 63rd-largest in the world when measured by purchasing power parity (PPP). New Zealand has one of the most globalised economies and depends greatly on international trade, mainly with China, Australia, the European Union, the United States, and Japan. New Zealand's 1983 Closer Economic Relations agreement with Australia means that the economy aligns closely with that of Australia. Among OECD nations, New Zealand has a highly efficient and strong social security system; social expenditure stood at roughly 19.4% of GDP.
New Zealand's diverse economy is made up of various types of informal and formal organisations, divided between the public and private sectors. It has a sizeable service sector, accounting for 73% of all GDP activity as of 2024[update]. As a large island nation New Zealand has abundant natural resources and mineral wealth. Prominent manufacturing industries include aluminium production, food processing, metal fabrication, wood and paper products. Goods-producing industries accounted for 20% of GDP as of 2024[update]. The primary sector continues to dominate New Zealand's exports, despite accounting for only 7% of GDP as of 2024[update]. The information technology sector is growing rapidly. (Full article...)