Regional economies continue to grow
Findings from Infometric's latest Quarterly Economic Monitor, highlights that almost all regional economies continue to grow, driven by population growth and sustained consumer confidence. However, concerns are growing about future growth, with a long, slow, slowdown expected over the next few years.
Generally speaking, North Island regions outperformed the national average, with the Hawke’s Bay economy growing 3.0 per cent per annum, followed by the Bay of Plenty and Auckland economies, both up 2.8 per cent.
However, Otago was the standout region over the June 2019 year, moving up five places to be the strongest-performing regional economy over the 12 months to June 2019, expanding 3.1 per cent per annum, according to provisional estimates from the economic consultancy.
"Economic activity continues to grow in Otago, driven by a range of factors," says Infometrics senior economist Brad Olsen.
"Health enrolments, a proxy for local population growth, rose 3.7 per cent per annum in Otago - the largest increase over the last year.
"More people in Otago has combined with buoyant households to boost economic activity, with data from Marketview showing consumer spending rose 4.6 per cent per annum in Otago.
"Construction activity also aided Otago’s rise to the top, with non-residential consents up 28 per cent, which has supported the local labour market. Unemployment in Otago fell to 3.4 per cent over the June 2019 year, and more construction activity resulting from the Dunedin hospital build is expected to support the local labour market for years to come."
Other parts of the country also saw growth
Commercial vehicle registrations rose 13.5 per cent per annum in the Manawatu-Wanganui region, highlighting sustained business confidence in the area, and helping to drive the region’s growth up 2.7 per cent.
Strong traffic volumes and tourism activity have helped keep Gisborne’s economic growth above the national average.
Non-residential construction in Marlborough looks set to add to economic activity, with consent values up 55 per cent over the June 2019 year, with an additional $21 million in projects set to be built compared to last year, comprising of accommodation, shop, and factory buildings.
