Strong start to the year for our Coromandel economy
Strong start to the year for our Coromandel
economy
Our Coromandel economy started the
year with a hiss and a roar, growing at our fastest rate in
recent years.
Infometrics' latest quarterly report
estimates Gross Domestic Product (GDP) in Thames Coromandel
was $1,087 million for the year to March 2018.
That's 4%
higher than the same time last year, representing our most
rapid growth rate in three years.
Our annual growth also
outpaced that of the wider Waikato region (3%) and New
Zealand as a whole (2.7%).
Our Mayor Sandra Goudie
welcomes the new figures - representing an economy that's
firing on all cylinders.
"It's no surprise the summer
months are always the strongest for our economy, when we
have our huge swell in visitors," Mayor Sandra says. "But
it's really positive to see a broad range of factors
underlying our growth in this report.
"Beyond tourism,
business is doing well, particularly forestry and
agriculture, indicating greater depth in our
economy."
Our low unemployment rate - at a 10-year low -
continues to be a highlight of the latest economic
data.
Infometrics estimates Thames-Coromandel’s
unemployment rate averaged 2.9% across the March 2018 year
– down from 3.6% a year earlier and our lowest level since
2008.
Our local unemployment rate is lower than that of
rest of New Zealand, where the unemployment rate averaged
4.6% over the year to March 2018.
The average number of
people receiving Jobseeker Support in our district fell
8.2%.
"These improvements are all the more remarkable
given that elevated migration inflows have significantly
added to the labour supply," Mayor Sandra
says.
"Investment by local businesses continues to open
up better job opportunities and our Council is serious about
doing what we can to support our business people and
entrepreneurs who create jobs by establishing and investing
in business on the Coromandel."
You can find out more
about what we are doing to support business in our
Economic Development Strategy 'Towards
2028'
What's fueling our
economy?
Growth in retail spending and the
number of residential building consents issued stood out as
leading the pace of growth in the region.
Electronic card
retail spending increased 7.8% over the year. Infometrics
noted that willingness to spend was not a surprise given the
improvements to labour market conditions that occurred in
both Thames-Coromandel and in neighbouring districts.
A
total of 77 new residential building consents were issued in
Thames-Coromandel District in the March 2018 quarter,
compared with 68 in the same quarter last year. On an annual
basis the number of consents increased 15% on the previous
year, while the national increase was
2.5%.
Primary sector continues to grow
strongly
Infometrics economists point to strong
returns for key parts of Thames-Coromandel’s primary
sector.
Forestry prices are sitting at record highs in
New Zealand dollar terms, as local and export demand is
high. Data from ANZ Bank indicates seafood export prices
rose by an average of 2.5% in the March 2018 year, and have
climbed more than 35% over the past five
years.
Infometrics estimates the dairy payout in
Thames-Coromandel will total $56M for 2017/18, compared
with a payout of just $36M at the trough two years
ago.
Visitor economy goes from strength to
strength
Total visitor spending in
Thames-Coromandel climbed 6.4% to a record $366M in the year
to March.
Commercial guest nights rose 6.4% over the
year, while Infometrics estimates show that Airbnb guest
nights during the summer months rose 61% from a year
ago.
Airbnb guest nights over the past twelve months were
equivalent to approximately 21% of the number of commercial
guest nights.
Hand-in-hand with growth in tourism,
traffic flows in the district soared 8.3% over the year,
close to twice the growth rate seen Waikato (4.5%) and 2%
nationally.
That's despite the rise in vehicle running
costs, with petrol prices currently sitting more than 10%
higher than their levels in late 2018.
Outlook
for economic growth
Infometrics’ latest
forecasts see New Zealand’s economic growth slowing to
2.4% pa by the end of this year and slipping below 2.0% pa
during 2019. A range of factors have combined to drive the
slowdown, many of which can be sheeted back to government
policy.
"It is becoming clearer that the transition phase
of new government policy could result in a less buoyant
economy over the next couple of years," Infometrics says in
its report.
Results at a
glance
Annual average percentage
change
• GDP +4%
• Traffic flows
+8.3%
• Residential consents
+15%
• Non-residential consents -4.4%
• House
prices +7.6%
• House sales -27%
• Guest nights
+6.4%
• Retail trade +7.8%
• Car registrations
-0.3%
• Commercial vehicle registrations
+10%
• Job seeker support recipients
-8.2%
• Tourism expenditure
+6.4%