The miracle economy of the southern hemisphere is not Australia

Better at managing an economy, too
Better at managing an economy, too
Image: AP Photo/Ross Setford
By
We may earn a commission from links on this page.

Of the two Antipodean nations co-hosting cricket’s World Cup, there’s no contesting which has the better economy.

Image for article titled The miracle economy of the southern hemisphere is not Australia

Just released GDP data shows output in New Zealand expanded a better-than-expected 3.5% in 2014. It’s neighbor—and bitter sporting rival—grew 2.5%.

It will give the Kiwis no small satisfaction that much of the growth was driven by the growing global realization of what an exceedingly pleasant place New Zealand is.

Image for article titled The miracle economy of the southern hemisphere is not Australia

A surge of tourist spending helped drive the economy, it was up roughly 24% in the fourth quarter of last year. The surge in tourism has helped balance out a decline of exports. Crucial meat and dairy exports were weighed down by a drought this year.

Moreover, New Zealand’s economy stakes out a nice middle ground when it comes sharing the benefits of the economy. Using Gini coefficients—a rough gauge of inequality—New Zealand is a much more equal society than countries like the US and UK, though it’s nowhere near the egalitarian Scandinavian societies.

Image for article titled The miracle economy of the southern hemisphere is not Australia

There’s a statistical possibility that the Kiwis and Aussies will square off in the World Cup on March 29. But the men in black already have some serious bragging rights.