Local Govt | National News Video | Parliament Headlines | Politics Headlines | Search

 

New Report Projects COVID-19 Impacts On Taranaki Economy

A new forecast for Taranaki’s regional economy for the next 12 months finds the economic impacts of COVID-19 will create the greatest economic shock in living memory, and could have a significant impact on the region.

The report, commissioned by Venture Taranaki and New Plymouth District Council, and undertaken by economists Infometrics, anticipates a 8.5% contraction in regional GDP for the year to March 2021 – slightly worse than an 8.0% drop forecast nationwide, while jobs are expected to decline 9.5% in the region, against a 9.8 % drop nationally.

“The two main pillars of our regional economy – energy and food production – are expected to see mixed fortunes going forward,” says Venture Taranaki Chief Executive Justine Gilliland.

“Internationally, we have seen a significant plunge in the commodity price for oil, and, compounded with COVID-19, the energy sector is expected to take the biggest hit of all our sectors in GDP terms, while food production and exports have remained strong and are forecast to stay that way.”

“Taranaki has a strong food production industry, which accounts for a significant proportion of our GDP and jobs. This economic backbone will play a pivotal role in our economic recovery and future growth.”

“We are also less exposed than other regions when it comes to international tourism, where our proportion of domestic visitors is much larger than most other regions.”

MBIE data shows that $429 million was spent by visitors to the region in the year to the end of January 2020, with $334 million or 77.9% coming from domestic tourism.

“While this may offer little comfort to our region’s tourism operators, it does send a more positive signal of recovery once domestic travel is safe and permissible. Other areas with a significant reliance on international tourism spend will find it harder to regain that momentum.”

“International education will also be hard hit, though again not as hard as some other regions. The challenge is that this is income into our education providers who can utilize it to provide additional opportunities for local students.”

The report estimates that 5,500 jobs will be lost in the region over the next 12 months - over 9% of Taranaki’s workforce – and unemployment could rise to 10.1%. The accommodation and food services, retail and wholesale trade and transport, postal and warehousing sectors are anticipated to be hardest hit. Construction is also expected to lose over 500 jobs.

Of particular concern is the potential impact to Maori employment, which is expected to remain at historic levels of double the regional unemployment rate.

“Under Alert Level 4, 56% of the region’s workforce was able to work, while 77% are likely to be back at work – in a safely isolated way – under Level 3. This is better than the national rates, of 53% and 74% respectively, but the overall impact will be a reduction of $312 million in wages paid into the region over the coming year,” Justine said.

The report offers a number of potential opportunities for recovery, with non-residential construction projects seen as a critical lifeline for both the construction sector and the regional economy, particularly the hospital redevelopment project.

“Outcomes such as lower housing prices, greater skill development, and retention and bringing forward of infrastructure projects have the potential to positively drive the economy beyond the next year,” Justine says.

“These align with the strategic projects and planning already well advanced with the Tapuae Roa and Taranaki 2050 work streams and will help to position Taranaki strongly as a desirable and progressive region when global fortunes and transit return to positive territory.”

“The paper also underscores the crucial importance of sustained investment in our region from local government, which is seen as a vital partner and enabler in growth projects, and national government though its ability to fund large-scale infrastructure projects.”

“Equally important in this recovery mix is our personal behavior and making sustained efforts to spend locally wherever possible, whether that’s a coffee, a big-ticket item, or holidaying domestically.”

“Investing locally, in the communities right around the Maunga, will help to flatten the downward curve of almost every economic metric we monitor. The support we can give the Taranaki economy over the coming months will have a huge impact on our region’s fortunes for generations to come,” Justine says.

“This report is a critical tool in Taranaki’s planning and recovery from the impacts of COVID-19. In developing it with NPDC and Infometrics, we’ve now got a useful and grounded projection, which we must now actively and strategically work to improve.”

“This means our region continuing to collaborate to mitigate the impacts and to accelerate our shaping of a better tomorrow for all.”

View the full report here: http://venture.taranaki.info/VT.Venture/media/Publications/Economic-Impacts-of-COVID-19-on-the-Taranaki-Economy.pdf?ext=.pdf

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On The Twitter Wars, And The Muller Muddles

Whatever the failings of our own politicians, spare a kind thought for the majority of Americans who did not vote for Donald Trump. Sure, it was depressing this week to watch Todd Muller clinging for dear life to his talking points on Q&A, lest he be carried away in the slavering jaws of Jack Tame…. but this was mere incompetence, not malice. At the same time the President of the United States was (a) falsely accusing one of his media critics of murder, and (b) threatening to shut down Twitter for attaching a warning label to Trump’s attempt at poisoning the electoral process by falsely claiming that postal voting has led to extensive voter fraud... More>>


 


Government: Freshwater Package Backed By Comprehensive Economic Analysis

Decisions on the Action for Healthy Waterways package are supported by comprehensive environmental and economic impact analysis by leading New Zealand research institutes, universities, and private sector firms. More>>

ALSO:

National: "Todd Muller Announces Shape Of Next Government"

National Party Leader Todd Muller has announced the line-up of the next Government. “New Zealand is facing perhaps the toughest time that almost anyone alive can remember. “We are borrowing tens of billions of dollars to get us through this crisis. There ... More>>

ALSO:

Lockdown Rules: Timeline For Moving To Level 1 Needed

The BusinessNZ Network is calling for more clarity about the conditions under which businesses can move to Covid level 1. The network is concerned about large numbers of businesses that are at risk of closure if restrictions continue at the current ... More>>

Gordon Campbell: On National’s Day Of Reckoning

Congratulations. You are one of the 55 members of the National caucus being called together tomorrow to choose who will lead you to either (a) catastrophic or (b) honourable defeat on September 19, thereby saving some (but not all) of the jobs currently on the line. Good luck. Your decision process starts NOW... More>>

ALSO:


Budget 2020: Jobs Budget To Get Economy Moving Again

Investments to both save and create jobs in Budget 2020 mean unemployment can be back to pre COVID-19 levels within two years and could see the economy growing again as early as next year. More>>

ALSO:

Covid-19 Response: Law Setting Up Legal Framework For Covid-19 Alert Level 2 Passes


The law establishing a legal framework for the response to Covid-19 has passed its final reading and will become law in time for the move to Alert Level 2 tonight.
This is a bespoke Act designed specifically to stop the spread of COVID-19... More>>

ALSO:


Trans-Tasman Bubble: PMs Jacinda And Morrison Announce Plans

Australia and New Zealand are committed to introducing a trans-Tasman COVID-safe travel zone as soon as it is safe to do so, Prime Minister Rt Hon Jacinda Ardern and Prime Minister the Hon Scott Morrison MP have announced... More>>

ALSO:

Government: Support For Arts And Music Sector Recovery

A jobseekers programme for the creative sector and four new funds have been set up by the Government to help our arts and music industry recover from the blow of COVID-19. Thousands of jobs will be supported through today’s $175 million package ... More>>

ALSO:

Government: New Zealand Joins Global Search For COVID-19 Vaccine

Foreign Affairs Minister Winston Peters, Research, Science and Innovation Minister Megan Woods, and Health Minister David Clark today announced a COVID-19 vaccine strategy, which will enable New Zealand scientists to contribute to global research efforts ... More>>

ALSO:

The Dig: Steady State Economics: We’ve Got Some (systems) Thinking To Do

In this time of impending economic and ecological crises, we urgently need to aim for a sustainable or ‘steady state’ economy. In order to get there, we will need to adopt a ‘systems-thinking’ outlook taking into account the interconnections of our complex world.

In short, we’ve got some systems thinking to do... More>>

ALSO:

Election 2020: Parties Get Into gear

The Green Party is pleased to reveal its candidate list for the upcoming election. With a mix of familiar faces and fresh new talent, this exceptional group of candidates are ready to lead the Greens back into Government. Using the most democratic list ... More>>

ALSO:

Insight Into Regenerative Agriculture In New Zealand

There is a fast growing movement in New Zealand that has been happening out in paddocks, fields, gardens and hill country across the nation. It is a movement that holds the promise to reshape our productive land use industries towards systems that work with the natural environment to regenerate the land. The movement is that of regenerative agriculture. More>>

ALSO:

Covid-19: Tracer App Released To Support Contact Tracing

The Ministry of Health has today formally released the NZ COVID Tracer app to support contact tracing in New Zealand. Kiwis who download the app will create a digital diary of the places they visit by scanning QR codes displayed at the entrances to ... More>>

ALSO:


Govt: Deep Concern At Hong Kong National Security Legislation
Foreign Affairs Minister Winston Peters today reiterated the deep concern of the New Zealand Government following confirmation by China’s National People’s Congress of national security legislation relating to Hong Kong.... More>>

ALSO:


 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 


 

InfoPages News Channels