There are many lessons that could be taken from this analysis for other countries. In the context of New Zealand, some of the current economic situational elements are as follows:The economy of New Zealand is one that works based on free market principles, and as such is seen to have gone from being regulated to a high level to being a more free market economy and herein lays some risks as well as opportunities (Kelsey, 2015). At one end, the free market economy makes New Zealand a very export driven economy where exports are seen to result in the GDP value of 30 percent and other industries form the rest. A low inflation economic environment is maintained and the economy as such has been slightly resilient to the crises as well. In the crises situation, New Zealand was seen to have an expanded economy of around 3.5 percent average growth every year and with annual inflation was seen to have averaged at around 2.6 percent. In the context of the crises, New Zealand faced a slowing down of the economy (Deakins et al., 2015).
The country however was able to pull itself out of the crises better than most OECD countries because of the well capitalized banks of New Zealand. The export strength of New Zealand also continued to hold. As of 2014, New Zealand is seen to have had a rising GDP at around 3.3 percent and the growth is expected to be around 3 percent and more in the forthcoming years. However, as of 2016 and 2017 the predictions for New Zealand are that of an economy that would drastically slow down. Issues in diary export, the oil trade and more would be seen as the reason behind this (Romer & Romer, 2015; Rey, 2015).
Now although the country has a very strong fiscal position, there are chances that it could be heading to a housing bubble crises as in the case of the United States because of the low interest rates that the country has had for more than half a decade now (Tong, 2016). The low interest rates are seen to be because of the financial environment in which credit is being fuelled high time. This is not much different from the housing bubble issues that were caused in the United States in the last decade. The interest environment continues to be low for around 5 years now and has resulted in many taking advantage of the low interest rate and imbalances are starting to form here. There is what researchers call a hot money overflow into NZ.