Gisborne had the highest economic growth in the June quarter, ASB’s latest Regional Economic Scoreboard says.
The report evaluates regions based on their annual growth in employment, building consents, and retail sales.
The three-month period ending in June was generally disappointing, according to ASB. However, senior economist Chris Tennent-Brown noted that a reduction in inflationary pressures by the year’s end could lead to a more optimistic outlook for 2025.
While the unemployment rate is expected to reach 5% by the end of 2024 and the construction outlook is anticipated to stay weak, Tennent-Brown said:
“We’re seeing some positive signs in the housing market with house sales increasing by 6.8 percent and prices rising by 2.2 percent this past quarter, and we can expect it to pick up with a bit more speed in 2025.”
Gisborne has secured the top position for the first time in over four years.
Meanwhile, Auckland dropped four places to tie for ninth, and Wellington also fell four spots, landing in 14th place.
Tennent-Brown said NZ regions that are associated with dairy production should experience a growing sense of confidence as their income levels are on the rise.
“Exports for Q2 were $26.26 billion, up from $25.99b a year ago, with dairy still our most attractive offering,” he said.
Nelson was at the bottom of the list. The challenges in its forestry and fishing industries, as well as the plateauing of the tourism market, have created a challenging economic environment for the region.
