The majority of the country’s electricity supply is generated from hydroelectric power, with major schemes on the Waikato, Waitaki and Clutha / Mata-Au rivers, as well as at Manapouri. Geothermal power is also a significant generator of electricity, with several large stations located across the Taupō Volcanic Zone in the North Island. The five main companies in the generation and retail market are Contact Energy, Genesis Energy, Mercury Energy, Meridian Energy, and TrustPower. State-owned Transpower operates the high-voltage transmission grids in the North and South Islands, as well as the Inter-Island HVDC link connecting the two together.
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New Zealand underwent major economic changes during the 1980s, which transformed it from a protectionist to a liberalised free-trade economy. The service sector dominates the national economy, followed by the industrial sector, and agriculture; international tourism is also a significant source of revenue. Nationally, legislative authority is vested in an elected, unicameral Parliament, while executive political power is exercised by the Cabinet, led by the prime minister, currently Chris Hipkins. King Charles III is the country’s monarch and is represented by the governor-general.
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New Zealand was ranked 26th in the Global Innovation Index in 2020 and 2021, down from 25th in 2019. New Zealand is heavily dependent on international trade, particularly in agricultural products. Exports account for 24% of its output, making New Zealand vulnerable to international commodity prices and global economic slowdowns. Food products made up 55% of the value of all the country’s exports in 2014; wood was the second largest earner (7%).
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Fiordland’s steep mountains and deep fiords record the extensive ice age glaciation of this southwestern corner of the South Island. The North Island is less mountainous but is marked by volcanism. The highly active Taupō Volcanic Zone has formed a large volcanic plateau, punctuated by the North Island’s highest mountain, Mount Ruapehu (2,797 metres ).
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