Bay of Plenty economy tops the regions for the second year in a row

A booming construction industry helped the Bay of Plenty economy top the regions, according to a new report by Stats NZ. Photo / Getty Images

The Bay of Plenty economy has topped the regions for the second year in a row, Stats NZ said today.

The Bay's increase in nominal Gross Domestic Product (GDP) rose 9 per cent to a value of $14.4 billion in the year to March 2017. This equates to 5.5 per cent of the country's total.

All 15 regional economies in New Zealand increased nominal GDP for the year ended March 2017.

The Bay of Plenty was followed by Northland and Waikato (both 8.2 per cent), Southland (7.9 per cent), and Otago (7.1 per cent). The national average was 6.2 per cent.

The Bay of Plenty's increase was mainly because of strong rises in the value of agriculture (horticulture and dairy), construction and rental, hiring, and real estate services.

"Agriculture played a significant role in many regions, reflecting the large rise in the milk price payable to dairy farmers in 2017," national accounts senior manager Gary Dunnet said.

Strong increases in housing-related industries were also seen outside the Bay of Plenty. The construction and rental, hiring, and real estate services industries also had an impact in Northland, Auckland, and Waikato – along with Otago.

"Construction in Canterbury tapered off over 2016 and 2017, which contributed to the region's increase of 5.1 per cent being below the national average," Dunnet said.

Taranaki retained the highest GDP per capita ($70,863), followed by Wellington ($69,851) and Auckland ($61,924). Gisborne had the lowest GDP per capita ($39,896). The national average was $57,002.