Equity risk premium of New Zealand
The equity risk premium of New Zealand is 3.22% (as of 28 Oct 2026).
The breakdown
| Part | Value | Basis |
|---|---|---|
| Mature market premium | 3.2230% | Observed |
| Country default spread | 0.0000% | Published table |
| Volatility ratio | ||
| Country risk premium | 0.0000% | Published table |
| Total equity risk premium | 3.2230% | Our mature premium plus published table |
Observed means worked out from market or official data. Published table means taken from a public country risk table.
How each part was found
The table gives New Zealand a default spread of zero, so it has no country premium.
The total is our mature market premium plus the table's country premium.
The table changes only when its author publishes a new one. Its country premiums are measured from its own base, so totals for table countries can run slightly high.
Where New Zealand stands
New Zealand is joint 165th of 175 countries by equity risk premium, counted from the highest.
Among the 155 countries whose totals come from the published table, New Zealand is joint 147th.
The median for the 34 countries in Asia-Pacific is 7.50%, and totals there run from 3.22% (Australia) to 18.76% (Sri Lanka). New Zealand is 4.28 points below that median.
The closest countries by total are Australia (3.22%), Canada (3.22%) and Denmark (3.22%).
How it is calculated
Total premium = mature market premium + country premium.
Use it in a cost of equity calculation
Cost of equity = risk-free rate + beta x equity risk premium. With made-up inputs of a 4.00% risk-free rate and a beta of 1.2, a company earning in New Zealand has a cost of equity of 4.00% + 1.2 x 3.22% = 7.86%.
The figures are in US dollar terms. For another currency, add the inflation difference between the two currencies.
Get it by API or MCP
GET /v1/economics/NZL/equity-risk-premium
{ "country": "NZL", "as_of": "2026-10-28",
"country_risk_premium": "0.0000", "total_erp": "3.2230",
"basis": { "total_erp": "table", ... } }
MCP: economics_get_equity_risk_premium { "country": "NZL" }Latest figure, history and every country, free with an API key.
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Common questions
What is the equity risk premium of New Zealand?
The equity risk premium of New Zealand is 3.22% (as of 28 Oct 2026), the extra return investors expect from shares over a risk-free government bond.
How is the country risk premium of New Zealand worked out?
The published table gives New Zealand a default spread of zero, so there is no country premium. The total equals the mature market premium of 3.22%.
Which equity risk premium should I use for New Zealand?
For a company whose cash flows are mostly earned in New Zealand, use 3.22%. For one earning in several countries, weight each country's premium by where its cash flows come from.
How often is it updated?
Every month. Each figure carries its date, and earlier dates stay in the history endpoint.