The Taranaki economy provisionally contracted by 2.8% in the year ending June, compared to a national decrease of 0.8%, a study has found.
Te Puna Umanga Venture Taranaki, the regional development agency, has published the most recent Infometrics Quarterly Economic Monitor for Taranaki, covering the year ending June 2025.
Based on the results, employment among Taranaki residents declined by 2.0%, while unemployment rose to 4.3% from 3.7% a year earlier, though it still remains below the national rate of 5%.
Meanwhile, the rural sector remains the backbone of the region, with the total dairy payout for the 2024/25 season estimated at $1,814 million, and the 2025/26 season expected to be at similar levels, provided production matches last season’s output.
These improving conditions, combined with higher international meat prices and increased forestry exports, will help counterbalance weaker areas, benefiting rural communities, households, and regional spending.
“Most businesses are slightly more optimistic than they were a year ago,” Kelvin Wright, chief executive at Te Puna Umanga Venture Taranaki, said.
“But we need to balance optimism with pragmatism. We encourage business leaders to ask themselves: Where do I want to be in six months? And what can I do now to get there?”
Venture Taranaki also published the findings of the Taranaki Business Survey. This year’s survey, which collected feedback from 188 enterprises, examined business sentiment with a particular emphasis on risk-taking and innovation.
40% of respondents anticipate an improvement in the national economy, up from 26% in June 2024. Regarding Taranaki’s conditions, 29% expect improvement, while 39% foresee conditions remaining unchanged.
19% of businesses intend to increase their staff, up from 12% in 2024. Although most employers anticipate stable employee numbers, skill shortages continue to pose a major challenge in education, healthcare, IT, and trades.