ars edged in white centered in
the outer half of the flag; the stars represent the Southern Cross
constellation

Economy
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Economic overview: Since 1984 the government has been reorienting
an agrarian economy dependent on a guaranteed British market toward
a more industrialized, open, free market economy that can compete on
the global scene. The government has hoped that dynamic growth would
boost real incomes, broaden and deepen the technological
capabilities of the industrial sector, reduce inflationary
pressures, and permit the expansion of welfare benefits. The initial
results were mixed: inflation is down from double-digit levels, but
growth was sluggish in 1988-91. In 1992-93, growth picked up to 3%
annually, a sign that the new economic approach was beginning to pay
off. Business confidence strengthened in 1994, and export demand
picked up in the Asia-Pacific region, resulting in 6.2% growth.
Growth continued strong in 1995, and inflation remains among the
lowest in the industrial world. The government announced its first
budget surplus in 16 years in FY94/95 and forecasts a surplus of
$5.0 billion in FY97/98. The government intends to use the surplus
to reduce the debt, increase social spending, and cut taxes - by
$1.35 billion over two years beginning in 1996. Per capita GDP now
is up to the levels of the big West European economies.

GDP: purchasing power parity - $62.3 billion (1995 est.)

GDP real growth rate: 5.5% (1995 est.)

GDP per capita: $18,300 (1995 est.)

GDP composition by sector:
agriculture: 7.3%
industry: 25.9%
services: 66.8% (1990)

Inflation rate (consumer prices): 2% (FY95/96)

Labor force: 1,634,500 (September 1995)
by occupation: services 64.6%, industry 25.0%, agriculture 10.4%
(1994)

Unemployment rate: 6.1% (October 1995)

Budget:
revenues: $22.18 billion
expenditures: $20.28 billion, including capital expenditures of $NA
(FY95/96 est.)

Industries: food processing, wood and paper products, textiles,
machinery, transportation equipment, banking and insurance, tourism,
mining

Industrial production growth rate: NA%

Electricity:
capacity: 7,520,000 kW
production: 30.5 billion kWh
consumption per capita: 8,401 kWh (1993)

Agriculture: wheat, barley, potatoes, pulses, fruits, vegetables;
wool, meat, dairy products; fish catch reached a record 503,000
metric tons in 1988

Exports: