The economy contracted in FY2021 (ended 30 June 2021) as prolonged border closures hobbled tourism and public investment projects. Fiscal results in the first 7 months of FY2021 suggest a broad decline across the economy, despite no community transmission of COVID-19. One-way quarantine-free travel into New Zealand began in March 2021, but two-way quarantine-free travel with New Zealand has been interrupted several times following COVID-19 outbreaks in Auckland. Economic recovery will depend on tourist arrivals in the coming months as restrictions ease. In calendar year 2020, the deficit in goods trade widened to 37% of FY2019 GDP, as a 23.7% decline in exports—mainly noni juice—outweighed the 12.5% drop in imports. Prospects for tourism earnings in FY2023 depend on border re-openings, following the low arrivals in FY2022.

Source: Asian Development Outlook 2022.

Initiatives / FTAs