Auckland Makes up 65% of GDP Growth, Regions Lag

City also now accounts for 36.6% of national GDP

 

Latest figures out from Statistics New Zealand paint a very imbalanced picture in terms of growth.

From Statistic New Zealand:

Regional Gross Domestic Product: Year ended March 2015

Eleven of 15 regional economies in New Zealand increased in the latest regional GDP figures from Statistics New Zealand.

Provisional estimates for the year ended March 2015 were released today. They show Auckland and Canterbury had the largest increases in nominal value (today’s dollars and unadjusted for inflation) in gross domestic product by region.

Auckland’s GDP increased $5.7 billion (6.9 percent), Canterbury’s $2.3 billion (7.3 percent), and Wellington’s $1.2 billion (3.7 percent). The national increase was $8.7 billion (3.7 percent).

“The large increase in Auckland reflects strong performances in construction, transport, and finance,” senior national accounts manager Susan Hollows said.

“Canterbury’s increase is associated with the Christchurch rebuild, which offset a decline in agricultural activity.”

Decreases were recorded in Southland, at $0.5 billion (9.9 percent), Waikato, at $0.4 billion (2.2 percent), Taranaki, at $0.3 billion (3.3 percent), and the West Coast, at $0.1 billion (5.0 percent). These decreases reflected a fall in agricultural activity.

Taranaki had the highest GDP per capita ($75,941), followed by Wellington ($65,974) and Auckland ($56,997). The Northland region had the lowest GDP per capita ($35,103). The national average was $52,953.

New Zealand’s total GDP was $241.2 billion for the year ended March 2015. The North Island contributed 76.7 percent to total GDP, and the South Island 23.3 percent.

Auckland’s contribution to total GDP for the year ended March 2015 was 36.6 percent. Canterbury contributed 13.6 percent, with Wellington narrowly behind at 13.5 percent. The smallest contribution was from the West Coast region (0.7 percent).

New Zealand’s regional economies 2015 visually presents the key measures of the 15 regional economies.

…….

Key Facts:

Regional gross domestic product (GDP) is a geographic breakdown of national-level GDP, which is New Zealand’s official measure of economic activity.

Provisional estimates for the year ended March 2015 (in nominal terms):

  • Auckland had the largest GDP increase, at $5.7 billion (6.9 percent). This was followed by Canterbury, at $2.3 billion (7.3 percent), and Wellington, at $1.2 billion (3.7 percent). The national increase was $8.7 billion (3.7 percent).
  • Southland recorded the largest GDP decrease at $0.5 billion (9.9 percent). This was followed by Waikato, at $0.4 billion (2.2 percent), and Taranaki, at $0.3 billion (3.3 percent).
  • Auckland contributed the most to New Zealand’s GDP (36.6 percent), followed by Canterbury (13.6 percent) and Wellington (13.5 percent).
  • Canterbury became the country’s second-largest economy, behind Auckland and narrowly ahead of Wellington.
  • The West Coast made the smallest contribution (0.7 percent).
  • Taranaki had the highest GDP per capita ($75,941), followed by Wellington ($65,974) and Auckland ($56,997). Northland had the lowest GDP per capita ($35,103). The national average was $52,953.

For the period March 2010 to March 2015:

  • Auckland had the largest increase in GDP, at $19.8 billion (29.0 percent). This was followed by Canterbury, at $8.9 billion (37.2 percent), and Wellington, at $5.3 billion (19.5 percent). The national increase was $46.9 billion (24.2 percent).
  • Auckland’s contribution to national GDP rose 1.4 percentage points (to 36.6 percent).
  • Canterbury’s contribution rose 1.3 percentage points (to 13.6 percent), while Taranaki’s fell 0.6 percentage points (to 3.6 percent) and Wellington’s fell 0.5 percentage points (to 13.5 percent).
  • The South Island’s contribution rose 0.8 percentage points, influenced by construction associated with the Christchurch rebuild and greater manufacturing contributions from Canterbury, the West Coast, Tasman and Nelson, and Marlborough.

New Zealand’s regional economies 2015 visually presents the key measures of the 15 regional economies.

Graph, Gross domestic product by region, year ended March 2015.

……….

Source: http://www.stats.govt.nz/browse_for_stats/economic_indicators/NationalAccounts/RegionalGDP_HOTPYeMar15.aspx

 

 

Here is a picture version:

New Zealand Economy by the regions Source: http://www.stats.govt.nz/browse_for_stats/economic_indicators/NationalAccounts/rgdp-YeMar15-infographic.aspx
New Zealand Economy by the regions
Source: http://www.stats.govt.nz/browse_for_stats/economic_indicators/NationalAccounts/rgdp-YeMar15-infographic.aspx

Click for enlargement

 

What it shows is that while Auckland accelerates ahead we do have deep problems with the regions especially those regions reliant on a sole product like Dairy.

This does require active Government intervention rather than brush offs Finance Minister Bill English gives in Parliament regularly. Logical and macro-economic policy dictates public spending on infrastructure and industry support. So better rail links, more primary industry diversification like beef, lamb and wood, and a focus on the higher end niche added value product.

Because crude oil doesn’t make the cash, the refined product does. Same applies with dairy and forestry!

 

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