Infometrics have released their Quarterly Economic Monitor for the Taupo District for the period ending June 2021.
The Taupō economy is recovering well from the COVID-19 shock. Infometrics provisionally estimates that GDP grew by 4.5% in the June 2021 year, which was slightly higher than national growth of 4.2%. The local economy is now larger than its pre-pandemic level.
The recovery in the economy is reflected in consumer spending growth of 11.6% over the year to June 2021, significantly higher than national growth of 7.7%. Consumer spending is being bolstered by tourism expenditure which was up 16.7% in the June 2021 year.
It must be noted that both the economic activity and consumer spending results are abnormally strong because the previous year includes the lockdown-affected June 2020 quarter. But there is little doubt that the Taupo has recovered well from lockdown, with consumer and tourist spending, and building work leading the way.
Taupō’s labour market is strengthening in line with its economy. The number of Jobseeker Support recipients dropped to 1,452 in the June quarter after peaking at 1,544 in the December 2020 quarter. The number of Taupō residents in work grew by 1.1% over the year to June 2021, a significantly better outcome than the slight decline at the national level.
Unemployment sits at a very low 3.4%.
Taupō’s agriculture and food processing sectors are a key source of strength in the district. The district’s dairy farmers are expected to reap $389m in the season ending May 2021, injecting an extra $31m into the economy compared to the previous season.
You can view the full infometrics report via the link below: