Liberalisation
Since 1984, the government of New Zealand has undertaken major economic restructuring (known first as Rogernomics and then Ruthanasia), moving an agrarian economy dependent on concessionary British market access toward a more industrialised, free market economy that can compete globally. This growth has boosted real incomes, broadened and deepened the technological capabilities of the industrial sector, and contained inflationary pressures. Inflation remains among the lowest in the industrial world. Per capita GDP has been moving up towards the levels of the big West European economies since the trough in 1990, but the gap remains significant. New Zealand's heavy dependence on trade leaves its growth prospects vulnerable to economic performance in Asia, Europe, and the United States.
Between 1984 and 1999, a number of measures of New Zealand's economic and social capital showed a steady decline: the youth suicide rate grew sharply into one of the highest in the developed world; the number of food banks increased dramatically; marked increases in violent and other crime were observed; the number of New Zealanders estimated to be living in poverty grew by at least 35% between 1989 and 1992; and health care was especially hard-hit, leading to a significant deterioration in health standards among working and middle-class people.
Between 1985 and 1992, New Zealand's economy grew by 4.7% during the same period in which the average OECD nation grew by 28.2%. From 1984–1993 inflation averaged 9% per year, New Zealand's credit rating dropped twice, and foreign debt quadrupled. Between 1986 and 1993, the unemployment rate rose from 3.6% to 11%.
Read more about this topic: Economy Of New Zealand