Budget 2013 is investing in growing New Zealand’s exports markets and boosting our overseas profile and international competiveness, Economic Development Minister Steven Joyce says.
“Under our Business Growth Agenda the Government has a specific goal of lifting our exports to 40 per cent of GDP by 2025,” Mr Joyce says.
“To help achieve this and create more and higher paying jobs for New Zealanders, the Government is investing a further $100 million a year over the next four years as part of our Internationally Focussed Growth Package.”
The new spending will be invested in extra research and development assistance to businesses and supporting new start-ups ($106.5 million over four years), investment in public science ($93.5 million over four years); additional funding for high-value tourism ($38 million for 2013/14, increasing to $40 million a year from 2014/15); and more resources for marketing New Zealand to international students ($40 million over four years) and marketing of New Zealand under the ‘New Zealand Story’ ($2 million for 2013/14).
To meet the target of 40 per cent by 2025, the value of New Zealand’s exports will need to double. This requires nominal export growth on average of between 6.7 per cent and 7.6 per cent per year to 2025.
Government statistics show that our nominal exports of goods and services has been growing by a compound annual average of 4.6 per cent in the last four years.
“This is a promising start given the on-going headwinds internationally from the Global Financial Crisis and the high New Zealand dollar,” Mr Joyce says.
“The aim of the Internationally Focussed Growth Package is to help accelerate this growth over the medium term and, in particular, build on the opportunities that exist in China, India, Southeast Asia, Latin America and in the Middle East.
“Increased levels of exports and strong international linkages are critical to lifting New Zealand’s long term productivity performance and economic growth rate. The Government’s $400 million investment through the Internationally Focussed Growth Package is about growing our export markets and building an export-focused economy that puts New Zealand on the path to greater prosperity.”