Infometrics’ provisional estimate of GDP shows that Taupō’s economy grew by 2.9% in the June 2017 year, just above national growth of 2.8%. A key factor behind Taupō‘s slightly better performance is that the district has higher exposures to industries that are outperforming the rest of the New Zealand economy, namely tourism and most parts of the primary sector. Even dairy after years of poor performance looks set to be one of the better performing industries over coming quarters. Against this backdrop, job prospects are improving, while traffic flows climbed 6.3% over the past year.
Although house price growth in Auckland and Hamilton continues to slow, prices in provincial settings and lifestyle destinations that were slower to get going in the first place, such as Taupō, continue to climb rapidly. House prices in Taupō grew 15% over the June 2017 year. Demand is flowing into Taupō where housing is much more affordable than other lifestyle destinations, such as those in the Coromandel or the Southern Lakes Region. Against this backdrop, there continues to be an increase in the number of new dwelling consents.
Retail spending growth is particularly high, driven in part by the tourism sector which is also growing above the New Zealand average. A reason for faster tourism growth in Taupō is that the district has higher exposures than the national average to European and North American visitors, who stay for longer than average and have been showing strong growth in their numbers recently.
Infometrics’ estimates show Taupō’s total dairy payout in the 2016/17 season was $284m, up $104m from the previous year. Although some of this additional money will go into debt repayment, there will be some scope for modest spending increases by dairy farmers. Activity in the forestry sector gained some traction in the first half of 2017, with production levels improving and export earnings up. Timber processors are also enjoying strengthening demand from high levels of homebuilding activity across New Zealand.
The strength of the economy in Taupō is starting to manifest itself in capacity issues. Recent news has focused on overcrowding at local schools. Not surprising when one considers Statistics NZ population estimates showed growth of 1.7% over the June 2016 year, compared to average growth of 0.7%pa since 2000. More recent partial indicators of population growth, such as international net migration statistics, show that growth is likely to have remained strong in 2017.
Click to download the full report: Taupo District Economic Monitor - June 2017 Quarter
Highlights for Taupo District
Each quarter, Enterprise Great Lake Taupo commissions economic research and publishes the findings in the ‘Taupō District Economic Monitor’. This report is prepared independently by Economist Sean Bevin, and follows the same format each quarter to provide benchmarking and comparison.
Local valuers, Truss & Keys, produce an annual Retail Precinct Survey that contains benchmarking data and analysis. You can read the current edition here.
SME's dominate our industries and make an important contribution to our economy. The Ministry of Business, Innovation and Employment together with Statistics New Zealand have put together this Small Business sheet that contains plenty of great facts and figures.
MBIE also have an interactive tool that you can use to find out key economic data and see how our economy compares to others. Check it out here.
Marketview - This report gives an insight into retail spending in the Taupo District. It looks at who is spending in our district, where the hotspots are and how our retail spend compares to the rest of New Zealand.
Download previous Taupo District Economic Monitor reports below: