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Infometrics quarterly report
The Bay of Plenty was the top performing regional economy during the March 2021 quarter according to provisional estimates from Infometrics’ Quarterly Economic Monitor.
Economic activity in the region grew 3 per cent per annum, while the national economy slipped back 0.3 per cent per annum.
“Higher commodity prices have supported economic activity in Bay of Plenty, with good returns for dairy, meats, horticulture, and wood exports,” Infometrics Senior Economist Brad Olsen says.
Overall, Bay of Plenty is showing some pockets of strength coming into 2021 but, like the rest of the country, is still battling the impacts of COVID-19.
Construction activity looks positive as both non-residential and residential consents are up – 76 per cent and 7.3 per cent respectively - over the year to March 2021.
Non-residential consents are particularly strong due to the consent applications issued for Winstone Wallboards Ltd which is relocating from Auckland to Tauriko.
Prices for the Bay of Plenty’s primary exports continue to hold fast with the Bay of Plenty forecast to earn a $915m dairy payout over the 2020/21 season; an increase of $68m on a year earlier.
Jobseeker Support recipients in the Bay of Plenty increased by 38.5 per cent in the year to March.
However, this growth was lower when compared to New Zealand as a whole, which increased by 39.8 per cent.
The annual average unemployment rate for the region was 5.2 per cent in March 2021, up from 4.3 per cent 12 months earlier. This was higher than the national rate of 4.7 per cent but not as high as 2012 when unemployment in the region peaked at 7.6 per cent.
“New Zealand’s economic recovery lost some momentum at the start of 2021, and the economy could remain sluggish throughout the rest of the year as the lingering effects of COVID-19 limit New Zealand’s economic potential, with some areas set to remain harder hit for longer,” Mr Olsen says.
“However, New Zealand’s economic outlook is expected to turn brighter as vaccines start rolling out and New Zealand charts a path towards reopening to the world eventually.”
You can read the full regional QEM here.
You can also check out NZME’s story on this topic (behind the paywall) here.
Wednesday, May 19, 2021