The new study suggested about 0.1 per cent of the population -- or 4400 Kiwis -- were affected by fetal alcohol syndrome, the most severe form, while 0.9 per cent, or 39,900, suffered from general FASD conditions.
The research estimated that the labour force productivity loss due to FASD translated to an aggregate loss in 2013 of between $49 million to $200 million -- equivalent to 0.03 per cent and 0.09 per cent of the annual GDP.
The study concluded that an effective preventive programme which made the public aware of drinking alcohol during pregnancy and discouraged pregnant women from drinking would more than pay for itself in terms of productivity gains in the labour force.
There would be further gains from eased pressure on health and justice services, along with less stress on Kiwi families.
The new action plan, launched on Monday by Associate Health Minister Peter Dunne, prioritised a boost in access to support and services for women with alcohol and drug issues, more research and "co-ordinated and consistent" support for affected people and families.
The Government has set aside $12 million over four years for intensive alcohol and drug support for pregnant women, with an additional $1 million for frontline training and research.
But an author of the new study, economist Dr Brian Easton, questioned whether this would be enough to tackle the scale of the problem.
"Provided we think of this as a beginning, the sooner we begin to roll out a more comprehensive programme, the better."
Fetal Alcohol Spectrum Disorder
• Covers a range of adverse effects on development when alcohol is consumed during pregnancy.
• Estimated to affect at least one in every 100 live births, though no research has confirmed the prevalence in New Zealand.
• Is linked to primary disabilities such as birth defects, cognitive impairment, and secondary disabilities such as mental health disorders, and educational and social difficulties.
Source: Fetal Alcohol Network NZ