Overview of Taupo District
Taupō District’s economy has bounced back strongly in the September 2020 quarter. Infometrics provisional estimates show that the district’s economy grew by 4.5% in the September quarter compared to the same quarter in 2019. Over the 12 months to September,
which includes the COVID-19 lockdown period, GDP declined by -1.6% compared to -3.3% in the national economy.
The strength of the recovery is shown in consumer spending which grew 14.5% in the September quarter compared with the same quarter in 2019. In contrast spending was only up 3.0% in the national economy.
Taupō has benefitted from Kiwis travelling in their own backyard during the September quarter rather than going overseas. However, this boost to the local economy will not persist into the summer when the absence of international tourists will leave a huge hole in tourism spending.
Taupō’s housing market is running hot with the average house value for the 12 months to September rising by 8.0% to $577,625. Rising prices are encouraging residential building with 91 consents issued in the September quarter against a 10-year average of 54.
The number of people receiving Jobseeker Support in Taupō has increased by 30% over the year to September 2020, compared to 27% nationally. The Infometrics Local Economic Insights Dashboard (LEI) shows that in the month of September 2020, there were
1,489 Jobseeker Support recipients and 80 COVID-19 Income Relief Payment recipients in the district. At the same time last year there were 998 Jobseeker Support recipients. Taupō’s average unemployment rate for the year to September 2020 of 3.1% is well below the
national rate of 4.4%.
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 $333m this coming season, down slightly from $350m last season.