29 Dec 2018

Regional economies on the rise

6:27 pm on 29 December 2018

The regions are growing at a much faster rate than cities and the trend is expected to continue over the next year, an economist says.

Napier Port

Napier Port. Hawke's Bay's GDP increased 3.1 percent for the year to September Photo: 123rf.com

Infometrics Quarterly Economic Monitor for the 12 months to the end of September showed growth across all 16 regions was strong.

Hawke's Bay, Manawatu-Wanganui and Nelson Tasman economies had all grown faster than Auckland, Wellington and Christchurch.

Hawke's Bay's GDP increased 3.1 percent, Manawatu-Wanganui, 3.8 percent, and Nelson-Tasman's growth was up 3.2 percent in the last year.

This compared to 2.6 percent growth in Auckland's GDP, 2.6 percent for Wellington and 2.3 percent for Canterbury.

Strong demand for primary exports was fuelling regional growth, Infometrics economist Brad Olsen said.

"Exports have been doing really well and we expect that to continue into next year, and that's seeing our regional economies really boost away."

Hawke's Bay and Wanganui experienced the strongest rise in house prices, with both up 11 percent in the 12 months to September.

This compared to 1.3 percent rise in Auckland house prices over the same period, while the number of house sales contracted by 1.6 percent.

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