According to the BERL Regional Database, the Central Otago District had the best-performing economy in New Zealand in 2008. This was a step up from 2007 and 2006, when the District placed 2nd.

The BERL Regional Performance Indicators rank the performance of 72 New Zealand territorial local authority (TLA) economies. An equal weight is applied to four key performance indicators – population, employment, GDP and business unit growth – in determining the top achievers for the year.

The top 10

The top 10 economies in 2008 were all Districts (as opposed to Cities), with four from the South Island and six from the North.
Central Otago District’s dominance was the result of it having the fastest employment growth rate in the country, as well as the 4th fastest growth in business numbers, the 10th fastest increase in population, and the 17th quickest rise in GDP.

In 2nd place in 2008 was Carterton District, which enjoyed a meteoric rise from its performance in the previous two years, where it placed 48th and 46th. This excellent result was due to the 2nd fastest employment growth, 4th fastest GDP growth, 10th quickest rise in business units, and 25th largest percentage gain in population.

Rodney District also moved up the list significantly, from 24th place last year to 3rd in 2008. This was on the back of strong growth in population (5th fastest), business units (6th), and employment (9th).

Ashburton and Selwyn Districts both achieved strong employment growth, to fill 4th and 5th positions on the list, respectively. Ashburton District had the 11th fastest GDP rise, and the 15th fastest surge in business units. Selwyn District’s rapid population growth continued (2nd fastest).

The top 10 were rounded out by Waipa and Waimakariri Districts (joint 6th), Kapiti Coast District in 8th, New Plymouth District in 9th, and Waikato District in 10th.

Waipa had the 8th quickest rise in employment, and the 13th fastest business unit growth. Waimakariri, like Selwyn District, enjoyed a strong surge in population (3rd fastest) as Christchurch expanded beyond the City limits. Kapiti Coast had the 4th fastest employment rise in the country, while strong oil and dairy exports saw New Plymouth’s GDP rise the 7th quickest in New Zealand. Waikato District benefited from rapid population growth (6th fastest), and strong business unit increases (8th).

Population growth

The Queenstown-Lakes District was once again the local economy with the strongest population growth, up 3.9% in 2008. As already mentioned, Selwyn and Waimakariri Districts also saw a surge in population, putting them in 2nd and 3rd spots respectively in terms of this indicator. Two Auckland Region economies – Manukau and Rodney – took 4th and 5th place.

The vast majority of New Zealand’s TLAs enjoyed population rises in 2008. Only 13 Districts saw their populations remain constant or fall, with the largest decline in Wairoa District (1.2%).

Employment growth

Employment growth was strongest in the Central Otago District, as alluded to above, reaching 6.2% for the year to March 2008. Solid performers also included Carterton (5.3%), Matamata-Piako (4.8%), Kapiti Coast (4.5%) and Hauraki (4.2%).

Overall employment growth to March 2008 was just 0.8% in New Zealand, with an even split of TLAs above and below this point. The largest declines in employment were in Tararua (-5.3%) and Rangitikei Districts (-3.1%).

GDP growth

Hauraki District achieved an impressive 12% surge in GDP in 2008. Next was Grey District (10%), followed by Wairoa (9.2%), Carterton (8.9%) and Waimate (8.8%).

GDP grew a solid 3.2% in the year to March 2008 nationally. All but six of New Zealand’s TLAs enjoyed an increase in value added within their borders. The Tararua District, with a large fall in employment, also endured the most significant decline in GDP, at -3.8%. This reduction in GDP was lower than the decrease in employment, however, suggesting strong labour productivity gains.

Business unit growth

Kawerau District saw its business numbers rise 5.0% in 2008, as did the Queenstown-Lakes District. Upper Hutt, Central Otago District, MacKenzie District, and Rodney District each also enjoyed a surge of more than 3.0% in business numbers.

Overall, the number of businesses in New Zealand rose by 1.4% during the year. Fifteen TLAs saw a drop in the number of businesses within their boundaries, with Wairoa losing 2.2% of its total.

Cities vs Districts

The 2008 achievers’ list was dominated by Districts, filling out the top 10 places. Indeed, the highest-placed city was Tauranga, in 16th, slipping substantially from its 1st place last year. Auckland was in 17th, followed by North Shore and Upper Hutt (joint 19th), Manukau and Wellington (joint 22nd), and Christchurch (24th). The lowest placed of New Zealand’s 16 cities was Lower Hutt, which placed 57th equal.
While Districts accounted for the top 15 places on the list, they also filled the last 15.

North Island vs South Island

Two-thirds of New Zealand’s TLAs are in the North Island. Yet three of the top five, and eight of the top 15 TLAs are in the South.
The lowest-placed South Island TLA was in 63rd place, with the nine lowest-placed TLAs all from the North Island.

The year’s big movers

As already mentioned, Carterton District’s rise has been rapid, up from 48th last year and 46th the year before. Waipa District made 6th, up from 36th a year ago. Other major improvements were in Matamata-Piako and Grey, each up more than 45 positions since 2007. Kawerau, in 24th this year, leapt from last place in 2007, thanks to strong gains in business numbers and GDP.

For more information on this report or on your own local economy, please contact Jason Leung-Wai (Senior Economist, BERL) at 04-931-9208, or David Norman (Economist, BERL) at 04-931-9220. 

A copy of the 2008 report can be downloaded here.