Te Puna Umanga Venture Taranaki, in partnership with Infometrics, has released the March 2025 Quarterly Economic Monitor. The independent report maps regional performance and offers grounded insights to support local planning.
Regional Leaders Prioritise Evidence-Based Insights
“This report is something we specifically commission for Taranaki because it’s vital that our region has access to independent, timely data,” says Anne Probert, Director of Strategic and Sector Partnerships at Te Puna Umanga Venture Taranaki. “It’s about being informed, realistic, and proactive about the trajectory of the region.”
Key Sectors Face Mounting Economic Pressures
New figures show Taranaki’s economy contracting by 3.1%, more than double the national rate. Employment has declined by 1.8%, with the heaviest impacts in construction, metal manufacturing, and utilities. Consumer spending also edged down by 1.9%, reflecting subdued household activity.
“We’re at the pointy end of the accelerated decline in gas production, and that’s flowing through many of our industry sectors, particularly engineering and specialist supply chains, adding a further dimension to our economic situation,” says Probert.
Meanwhile, the number of people receiving Jobseeker Support in the region rose by 7.2%. While this is still below the national increase of 12.6%, it underscores the growing strain on employment and household income.
Dairy Sector Delivers Resilience
A forecast 31% rise in the regional dairy payout is set to inject $1.807 billion into Taranaki’s economy for the 2024/25 season. The increase is being fuelled by higher international prices and favourable currency conditions, helping to lift the region’s rural sector.
“This is a much-needed boost for our rural communities, who have been contending with the impacts of drought and other challenges,” Probert explains. “Given the critical role that farming plays across our entire economy, from the farm gate to support services, manufacturing, logistics and retail, this upturn has flow-on benefits for the whole region.”
Fonterra’s recent investment decisions, including the electrification of its Whareroa plant and development of new cool store facilities, signal strong confidence in the long-term future of Taranaki’s agri-food sector.
Housing Market Shows Early Recovery Signs
The housing market is showing signs of renewed activity. House sales in Taranaki are up 13.2% year-on-year, and residential building consents have jumped by 22.9%. While average house prices remain stable, the rise in transactions and construction signals growing optimism.
Lifestyle appeal and affordability continue to drive interest in the region, with local developers and buyers seemingly more confident in future prospects.
Other Sectors Report Mixed Performance
Other areas of the economy paint a more varied picture. The unemployment rate remains relatively low at 4.5%, compared to the national average of 4.9%. However, tourism spend has declined by 6.3%, with both domestic and international visitor nights falling. The number of registered business units also dipped slightly by 0.1%, bucking the national trend of 1.2% growth.
Regional Strategy Guides Future Planning
Regional leaders are continuing to align efforts around Taranaki’s core strengths, with the Tapuae Roa economic development strategy positioned as a central tool for guiding the region through the months and years ahead.
“It’s clear that there are challenges but there are also positive areas and momentum for the region,” says Kelvin Wright, Chief Executive of Te Puna Umanga Venture Taranaki. “The report highlights the importance of having the regional economic development strategy in place, Tapuae Roa, to ensure we’re making the most of our region’s strengths and capitalising on emerging opportunities.”