Covid 19 coronavirus: Economic impact in Whanganui softer than national averages

Early indications show Whanganui has weathered the economic impact better than nationwide averages. Photo / 123rf

Infometrics senior economist Brad Olsen says Whanganui has emerged as one of the best districts in New Zealand in terms of weathering the economic impact of Covid-19.

Olsen presented his insights and analysis to Whanganui district councillors, Whanganui & Partners and business leaders in a webinar this week.

"Although it hasn't been an easy ride, and businesses in the local area will be feeling the pinch, it has been better than we might have expected and certainly better than the rest of New Zealand experienced."

Olsen pointed to Whanganui consumer spend, which took a hit during lockdown but held up at a considerably better level than most of the country.

From the beginning of February through to the first week of June, consumer spend in Whanganui was down by 6.4 per cent compared to the same period last year.

Spend in New Zealand as a whole was down 15.9 per cent for the same period.

Similarly, employment in Whanganui has been affected at a lower level than elsewhere in New Zealand.

Of the country's 67 districts, Whanganui has had the third smallest increase of people on the Jobseeker Support benefit.

Newly released house price data from REINZ was also positive, with the median price up 25 per cent from last June.

"That highlights the strong economy and that people are looking to move to the area or regard Whanganui as a firm place to plant themselves and their families," Olsen said.

As for the future, Olsen said that New Zealand is still in the early stages of the economic hit.

He noted that there is still economic buffering in place through the wage subsidy and Covid-19 income relief payment programmes.

Both programmes are set to expire in September.

He also noted the challenges posed by an interconnected global economy.

"New Zealand might be doing all right, and China might be doing all right, but if China's trading partners in the US and Europe aren't doing all right, eventually that feedback loop does come back to bite us too.

"We're certainly not out of the woods, but things are brighter than expected."