New Zealand’s economy is expected to grow by 1.4 per cent in 2018, according to the Reserve Bank.
But there is a lot of work to do to keep pace with growth.
Here’s what you need to know about the island’s economic performance:What is a New Zealand economy?
A New Zealand economic recovery is generally defined as the number of new jobs added by a country every month between January and March, based on the National Accounts data released in April.
It includes employment in services, manufacturing, accommodation and transport, tourism and manufacturing, which accounted for almost three-quarters of all jobs in the country last year.
The economy grew by 2.3 per cent last year, the fastest growth since 2007.
But many other parts of the economy are still recovering from the recession of the early 2000s, when New Zealand was hit hard by the global financial crisis.
The biggest contributor to the economy is foreign direct investment, a sector which has increased by 2,300 jobs in a year.
New Zealand has had a strong foreign direct inflows over the past decade, and this year the country will receive an additional $1.2 billion in aid, the Reserve said.
But foreign direct spending, a key indicator of economic performance, also continues to fall, with spending on new infrastructure, research and development, research into alternative technologies and the provision of healthcare spending at record lows.
The economic outlook in Auckland and the Waikato has been boosted by stronger tourism, which is forecast to be the fastest growing in the economy.
The city has welcomed more than one million visitors in 2018 and the economy continues to expand in other parts, such as Northland, the main trading hub of New Zealand.
The number of international tourists visiting New Zealand increased by almost 60 per cent from last year to a record high of 1.1 million.
Newland is also booming, with nearly half of all international visitors to the country, more than double the level of the previous year.
But the island has been struggling to attract international investors, with the amount of foreign direct investments falling to the lowest level in nearly two decades.
The New Zealand Institute of Technology, which has long been one of the islands strongest employers, has seen a significant drop in international investment.
The Institute said it has seen its international investment drop by nearly $300 million since the end of the financial crisis, and that it is likely to experience a loss of about $400 million over the next year.