In what could be a telltale sign of New Zealand’s robust digital economy, a new economic report reveals the key role the United States plays as an export market. Furthermore, it shows the growing role of New Zealand high-tech products in trade, Minister for Trade and Export Growth Damien O’Connor revealed.
New Zealand is a trading nation and supporting our country’s exporters remains a priority for this government. It is crucial that we show the high-quality export diversification that New Zealand has to offer – and in doing so, we accelerate our economic recovery from COVID-19.
– Damien O’Connor, New Zealand Minister, Trade and Export Growth
The report commissioned by the Department of Foreign Affairs and Trade, ‘The New Zealand-US trading relationship: stability and diversity in times of change’, shows that while the primary sector remains New Zealand’s largest exporter , digital services have become a major contributor.
O’Connor confirmed that the United States is New Zealand’s third largest trading partner and is now the country’s main destination for services, receiving more than 22% of total services exports. The report found that New Zealand’s primary sector remains the backbone of exports to the United States, but showed a significant shift in the product balance.
Additionally, digital services are a major contributor, with NZ$682 million in exports to the United States. This export is split between IT services and software license exports. Thus, American trade and investment has also played a key role in the development of the New Zealand space industry.
This should be a welcome sign for Wellington, as the government is aggressively marketing the nation’s technology. It has spent a considerable sum advertising the country’s digital services to the world in hopes of attracting top talent and injecting foreign capital. Furthermore, such a development should encourage Aoteroa’s ICT sector professionals to do more to contribute to the digital transformation of the country.
The government is aware of this. The New Zealand technology sector is a significant contributor to the New Zealand economy, creating many jobs, GDP and exports.
In 2021, New Zealand’s top 200 technology exporters earned $13.9 billion and total global digital exports increased by 23%. The Tech Story initiative was a concerted effort to further accelerate this growth by increasing the awareness and preference of Aotearoa’s technology sector internationally.
The Tech Story, “We See Tomorrow First”, is a marketing and sales initiative, created in collaboration with industry and government, with a dual mandate: to support the growing digital technology sector and help commercialize these innovations to the global marketplace, and at the same time attract international investment and technology talent to New Zealand.
“New Zealand has a unique perspective on how we create technology and run technology companies. It is a perspective, drawing on the Maori values of kaitiakitanga or guardianship, that now more than ever the world must help create the technology to build a better future,” says Julie Gill, NZ Chief Strategy Officer Tech.
One of the main drivers of Aoteroa’s success in technology is government support. New Zealand’s tech sector is getting all the support it needs to make digitalization a reality. Not only did Wellington advertise his tech talents in the best possible light, he also involved them in his comprehensive planning for the technology ahead.
As reported on OpenGov Asia, the New Zealand government is letting all stakeholders participate in its digital roadmap for the coming years. It shows how much the island nation values its people. It’s no surprise that technological breakthroughs such as how artificial intelligence is being used to fight glaucoma have become more and more common in the country these days.