New Zealand’s economic performance has been good, with the EPI score projected to be close to 94.9%, or a B+ level, in 2016. Economic growth has decelerated slightly from 3.3% in 2014 to 2.2% in 2015 and is projected to be 2.4% in 2016, mainly because of lower residential investments.

The current unemployment level of 5.8% is relatively low and inflation is close to 1.5%, driven by low commodity prices. New Zealand has signed a series of trade agreement with Asian countries in the past decade as well as the Trans Pacific Partnership (TPP) in 2015. Its major trade link with Australia and China make the economy dependent on Chinese economic growth and leaves it exposed to drop in commodity prices via Australia, which is a large iron ore exporter. The 5-Minute Economist projects New Zealand’s economic performance to improve to A- level in the next few years, driven by better deficits and GDP growth.