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Bay of Plenty Quarterly Economic Monitor

economic monitor

Growth in the Bay of Plenty’s economic activity outstripped national growth rates in the year to June, putting a spotlight on the region’s post-lockdown resilience.

The release of Infometrics’ Quarterly Economic Monitor (QEM) unfortunately coincided with the country’s second nationwide lockdown, but it serves to remind local businesses of the Bay’s ability to bounce back.

Infometrics estimates economic activity in the year to June 2021 is sitting 6.8 per cent higher than a year ago, compared to a growth rate of 4.2 per cent across the country.

Additionally, activity in the year to June 2021 is sitting 5.7 per cent higher than the same period in 2019, showing that despite the 2020 lockdown inflating current annual growth figures, the Bay of Plenty economy is still in a strong position.

The latest data from Marketview shows consumer spending in the Bay of Plenty is up 10.6 per cent for the year to June 2021, compared to a 7.7 per cent increase nationally.

Although some of this spend can be attributed to the post-lockdown surge, spending is still up 9.1 per cent on the same period in 2019.

Tourism, one of the Bay of Plenty’s biggest sectors, particularly in Rotorua, has also performed well with visitor spending growing by 14 per cent in the year to June. However, it is important to note that this latest QEM is based on a regional view – and we know some districts are more significantly impacted than others by the constraints around international tourism.

Tourism expenditure is still up 2.6 per cent on the year to June 2019 – showing domestic tourism has helped bridge the gap left by international tourism.

Infometrics Principal Economist Brad Olsen says the region’s strong economic activity is also evident through employment figures, with filled jobs for Bay of Plenty residents climbing 1 per cent, a contrast to the 0.1 per cent decline nationally.

Mr Olsen says a substantial pipeline of building activity should keep employment elevated, but capacity constraints in the industry will likely increase costs and timelines.

You can read the full QEM here.

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Monday, August 23, 2021

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