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Gisborne's commercial construction sector is running at double the normal rate as new data shows the regional economy is the only one in New Zealand still growing in the wake of Covid 19.

New quarterly data released by economic consultants Infometrics show Tairawhiti was the only region in New Zealand to record economic growth in the year ending September.

“The Tairawhiti economy saw sustained and solid economic growth in the September quarter as activity surged post-lockdown,” Infometrics senior economist Brad Olsen said.

“Provisional estimates from Infometrics show economic activity in the region rose 2 percent (per annum) in the September quarter, meaning Tairawhiti was the only region to record economic growth over the last 12 months.”

Trust Tairawhiti tourism general manager Adam Hughes was pleased to see consumer spending in Tairawhiti was up 4.3 percent compared with the -2.7 percent national average.

“Our consumer spending in the retail sector is performing well. This is a continuation of performance since lockdown ended and shows the resilience of the region with underlining consumer confidence.”

The September quarter recorded 22 new building consents compared with 27 in 2019. Over the last 12 months, 86 new house consents were issued.

Trust Tairawhiti commercial general manager Richard Searle acknowledged the region's housing challenge.

“Tairawhiti has a shortage of over 400 homes. Insufficient rent returns relative to the cost of new housing is failing to stimulate an adequate supply. Rents are now increasing significantly but this will exacerbate the unaffordability for many.

“A recent Chamber of Commerce survey highlighted that a lack of qualified staff is hampering a busy trades and construction sector in Tairawhiti.

“Rising house prices will help to incentivise new house building but Manaaki Tairawhiti and Trust Tairawhiti are working with our regional partners to address a complementary but more needs-based intervention to accelerate the supply of social and affordable housing.”

Non-residential consents, at 101 percent growth, were also hugely above the national average of -7.6 percent.

Outlook for 2021 'looking really positive'

Civil Project Solutions principal project manager Russell Moylan commented on this significant increase.

“Gisborne's 100-percent-plus increase in demand for industrial and commercial development over the last 12 months is in line with what we see in our business.

“Civil Project Solutions is involved in a growing number of exciting projects across multiple sectors, with businesses taking advantage of expansion and growth opportunities.

“The outlook for 2021 also looks really positive, with plenty of projects in the pipeline.”

The strong performance of the Tairawhiti economy and co-ordinated investment from local leaders and central government has helped to alleviate the worst effects of Covid-19 impact.

However, the 2695 people receiving the job seeker support benefit was a 19.2 percent increase over the last 12 months, albeit better than the 27.3 percent increase experienced nationally.

The regional CARE forum is working with its members to identify skills, training, industry, business and employment needs, and then find appropriate pathways that match and support the local talent into the jobs available in Tairawhiti.

Mr Olsen said while the economic hit from Covid-19 had been felt differently across the country, the surge in activity in the September quarter was stronger than anyone expected earlier in the year and highlighted New Zealand's ability to swiftly respond to the Covid-19 pandemic.

“A considerable amount of this higher economic activity is from playing catch-up after Alert Level restrictions in April and May, but our analysis shows that Kiwis got out there to support their local businesses and communities at a rapid pace.

“The September 2020 quarter provides an upbeat assessment of the economy, and the rebound in activity is a success story that should be celebrated,” said Mr Olsen.

“Kiwis have responded to the call to back local and it's paying dividends for local economies.”

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