Hawke's Bay poised to drive national growth, shows Infometrics report

Hawke's Bay is one of the provinces driving economic growth compared with larger centres around the country. Photo / File

Provincial areas of New Zealand are dominating economic growth-comfortably outpacing the main centres according to Infometrics' latest economic report.

The chief executive for the Hawke's Bay Chamber Of Commerce, Wayne Walford, agreed Hawke's Bay was one of the regions contributing to strong economy growth.

Walford said migration, the housing market and construction activity were contributing factors. There's also been an internal sense of confidence for businesses and migration.

"The region is rocking commercially and this confidence has enabled an increase in staff levels, an increase in training but has also exposed the skill shortage," he said.

"Confidence increases attractiveness and through a range of events and links to Hawke's Bay we are seeing positive visitor numbers."

The report indicated that the New Zealand economy's momentum over the next 18 months would come from provincial areas, thanks to strong export incomes.

However, the growth in the provinces wouldn't be enough to prevent New Zealand's economy cooling off during 2019.

Walford said although confidence was strong, the world economy may start to dampen local business confidence.

"The heat has gone from house sales – although there is still a lot of market interest. People now have time to do due diligence rather than having to act quickly to secure a property.

"Movements through the Port of Napier has seen a record month in June. Exports continue to grow.

"We still have opportunities for importing companies, especially those that offer entry-level employment. With Big Save and No 1 Shoes having their national distribution centres here in Hawke's Bay, they are great examples of positive growth opportunities."

Central Hawke's Bay mayor Alex Walker agreed Hawke's Bay was a provincial economical driver, especially when it came to rural areas.

"Rural Hawke's Bay- which includes Central Hawke's Bay- are the ones in the agricultural sector and the horticultural sector which are providing strong and consistent returns at the moment," Walker said.

"The signs for our provincial activity to continue are good and from a Central Hawke's Bay perspective I can't see any reason why it would slow down. There's a huge amount of housing activity down here as well which is creating a lot of positivity for us."

Hastings mayor Sandra Hazlehurst said the economy in Hastings was strong with the momentum continually building.

"Growth in the primary sector is driving our positive economy and is a major contributor to our region's GDP. All the industry predictions for the primary sector show us that our economy will continue to increase and outperform some of the other metropolitan areas.

"3.3 million tonnes of logs will be harvested here over the next 20 years; 500 hectares of new pipfruit trees are being planted a year for the next five to seven years; and Hastings has seen over $100 million of investment in new manufacturing plants in the last year," Hazlehurst said.

"Our aim is to attract more people into our skilled workforce. We have affordable land and homes compared to other major cities and a great lifestyle."