Defence spending as a proportion of New Zealand's gross domestic product (GDP) trended downwards from 1990 and has hovered around 1% or just below from this period. The drop in spending relative to GDP is associated with the end of the Cold War (1945–91).
Note: nominal GDP figures (year ending March) are used. Defence spending figures are based on operating expenditure and do not include capital expenditure.
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Te Ara - The Encyclopedia of New Zealand
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Source: Statistics New Zealand
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