23 August 2006
Regional Economic Growth Outlook – “Steady As She Goes”, According To Pwb / Infometrics Report
The outlook for the Wellington regional economy over the next two years is moderate growth, supported by a more coherent
approach to fostering business and economic development, according to Positively Wellington Business chief executive
Philip Lewin.
In releasing PWB’s latest regional economic outlook update report, Mr Lewin said the pace of the region’s growth had
eased to an estimated 1.6 per cent in the year to March 2006, just below the national estimated rate of 2 per cent.
“Just as we cautioned against reading too much into last year’s 7 per cent regional growth figure, we needn’t overreact
to this year’s,” said Mr Lewin.
“The growth rate trend for Wellington region’s economy has been somewhere between 2 and 4 per cent and is expected to
continue at about this rate for the next two years or so.
“Although this is below the rate that we need, there are some highlights in our review of the past year and in the
outlook for the region,” Mr Lewin said.
Regional economic performance had been above the national average in a number of areas, according to the report
commissioned from Infometrics by PWB.
The accommodation sector had performed very strongly, with regional guest nights in the year to April 2006 some 6 per
cent higher than the previous year.
The region’s construction sector had sustained high levels of activity, particularly for non-residential projects, and
the Wellington commercial property market continued to be the strongest in the country.
Other sectors showing dynamism included ICT, creative industries, government services, and business services.
Meanwhile, falls in the New Zealand dollar had improved the export competitiveness of business. Manufacturing, which
accounted for 8 per cent of regional GDP, had grown in both the December 2005 and March 2006 quarters. This was
principally from efficiency gains, but output growth was expected to accelerate as manufacturers benefited from the
exchange rate.
“These are sound results. Also, the soon-to-be-confirmed Wellington Regional Strategy – an exciting new blueprint for
the region’s economic development – means that the year 2007 will usher in a more concerted and coherent approach to
fostering growth,” Mr Lewin said.
ENDS