The city of Tauranga (pictured), the Western Bay district and Queenstown have New Zealand's three fastest-growing local economies.
The city of Tauranga (pictured), the Western Bay district and Queenstown have New Zealand's three fastest-growing local economies.
Tauranga and the Western Bay of Plenty have been highlighted as star performers for economic growth for the five years leading up to the Covid-19 lockdown.
The two Bay of Plenty districts joined Queenstown to be named New Zealand's fastest-growing areas.
A report released this week by the Ministry ofBusiness, Innovation and Employment used figures from the Modelled Territorial Authority Gross Domestic Product estimates to show a localised breakdown of economic growth through nominal GDP.
Western Bay of Plenty's compound growth rate in those five years was 12.4 per cent, Tauranga's 10.1 per cent and Queenstown's 12.9 per cent.
The manager of the Business and Economic Development team, Gillian Thornton, said there were some interesting aspects in the results.
"The figures provide us with a snapshot of how New Zealand's local economies have been performing over the five years up to the time of the Covid-19 pandemic.
"While Auckland, Wellington and Christchurch remained strong centres of economic activity as would be expected, the highest growth was actually recorded in Queenstown Lakes," Thornton said.
"High growth of 8.9 per cent was also achieved by Queenstown's neighbour Central Otago, while in the North Island, the Bay of Plenty is recording strong growth."
In addition to Western Bay's and Tauranga's performances, Ōpōtiki recorded 9.2 per cent.
Thornton said Auckland remained the biggest contributor to national GDP and GDP growth.
"Economically, Auckland is by far New Zealand's largest territorial authority area, accounting for 37.7 per cent of New Zealand's GDP in 2015-2020," she said.
Unlike real GDP, nominal GDP is not adjusted to remove the effects of inflation, meaning it changes with shifts in quantities and prices.
Thornton said the Modelled Territorial Authority Gross Domestic Product results provided a better understanding of how industries and economies were performing at a local level.
"Our research also shows cities have a high proportion of their GDP in services, while most other areas rely on primary industries or are service-based with significant additional primary industry output."
Priority One chief executive Nigel Tutt. Photo / NZME
Priority One chief executive Nigel Tutt said the Western Bay economy had performed very well over the past five years.
"It's pleasing to see GDP per capita improve alongside the size of the economy."
But Tutt said while the region's strong growth and low unemployment were positives, "we also need to make sure our community is more prosperous as a result".
"Household income and earnings are important moving in the right direction but need further improvement in the future.
"We have grown strongly because of our location and the great industries here like the port, horticulture and our manufacturing sectors."
Tauranga Chamber of Commerce chief executive Matt Cowley. Photo / NZME
Tauranga Chamber of Commerce chief executive Matt Cowley said the main economic drivers were the Bay's steady population growth, conversations of farmland to kiwifruit, and strong tourism sector.
Cowley said the city's ageing demographics were also making Tauranga a specialised hub for the health industry.
"Business support services have also benefited from expat Kiwis coming home and bringing their international expertise with them.
"The investments in the Port of Tauranga capacity also means our region plays a critical role in New Zealand's economic strategy."
NZKGI chief executive Colin Bond. Photo / Supplied
New Zealand Kiwifruit Growers Inc chief executive Colin Bond said kiwifruit was New Zealand's largest horticultural export and contributed to the economies in regions where the fruit is grown - especially in the Bay, which produces more than 80 per cent.
"In 2020, industry returns contributed $152 million to the Bay of Plenty.
"While the industry is facing challenges with labour supply and regulatory reform, the future is bright with production is expected to jump from a forecast 177 million trays in 2021 to 190 million trays in 2027."
Tourism Bay of Plenty acting chief executive Oscar Nathan. Photo / NZME
Tourism Bay of Plenty acting chief executive Oscar Nathan said while the statistics were heartening, there was no denying these were tough times for the tourism industry.
"The $250m in international manuhiri (visitor) and cruise passenger receipts that pour into the Coastal Bay of Plenty's economy each season is unlikely to return in any major way in the foreseeable future."
However, he said domestic visitor spend post-lockdown had almost accounted for the loss of the international visitor market.
"We are relying on the strength of our domestic market and are continuing to run campaigns and encourage the development of new products that attract Kiwis to explore their backyard."
Nathan said the largest contributor to visitor spend was retail, food and beverage, which, unfortunately, were areas facing labour shortages.
"We are certainly not out of the woods yet."
A Port of Tauranga spokeswoman said the port had wide-reaching benefits for the region.
It directly employed 250 people with another 6000 visiting regularly to work and thousands more employed in associated businesses.
The most recent economic impact figures from 2016 - soon to be updated - estimated the port was "responsible for just under half of Bay of Plenty regional GDP and almost 150,000 jobs nationwide", she said.
She said the port was investing in an extended container berth and technology to increase container storage and handling capacity.
