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economy that can compete globally.

This dynamic growth has boosted real incomes but left behind some at the bottom of the ladder and broadened and deepened the technological capabilities of the industrial sector.

Per capita income rose for 10 consecutive years until 2007 in purchasing power parity terms but fell in 2008-09.

Debt-driven consumer spending drove robust growth in the first half of the decade, fueling a large balance of payments deficit that posed a challenge for policymakers.

Inflationary pressures caused the central bank to raise its key rate steadily from January 2004 until it was among the highest in the oecd in 20The higher rate attracted international capital inflows, which strengthened the currency and housing market while aggravating the current account deficit.

Rising house prices, especially in Auckland, have become a political issue in recent years, as well as a policy challenge in 20, as the ability to afford housing has declined for many.

Expanding New Zealands network of free trade agreements remains a top foreign policy priority.

New Zealand was an early promoter of the Trans-Pacific Partnership (TPP) and was the second country to ratify the agreement in May 2017.

Following the United States withdrawal from the TPP in January 2017, on 10 November 2017 the remaining 11 countries agreed on the core elements of a modified agreement, which they renamed the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (cptpp).

In November 2016, New Zealand opened negotiations to upgrade its FTA with China; China is one of New Zealands most important trading partners.

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