Quarterly Economic Monitor December 2025
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The first tentative signs of economic recovery from a deep recession are showing in Taupō’s economy. Economic output in the December 2025 quarter was up 1%pa compared with the same quarter in 2024, according to provisional estimates from Infometrics. However, because of weak previous quarters, GDP for the full year to December 2025 was up by just 0.4%pa. The national economy also grew 0.4% over the same period.
The very large energy sector was the biggest contributor to the district’s economic growth. Strong activity in the housing market also contributed to the economic recovery. Output from the rental, hiring, and real estate services industry grew 1.4%, supported by a 25% increase in house sales over the year to December 2025. Lower mortgage rates have encouraged more buyers into the market, but the high number of listings and concerns about job security have capped house value growth. The average house value in Taupō was $741,000 in the December 2025 quarter, up from $729,000 in the same quarter in 2024.
The tourism sector in Taupō is struggling as local tourists cut back on domestic travel due to squeezed household budgets. Tourism expenditure was down 2.9% over the year to December 2025. While international guest nights were up 6.6% over the year, domestic nights were down 7.8%, with overall guest nights down 4.8%. Nationally, total guest nights were up 1.9% as growing international guest nights offset falling domestic nights.
Taupō’s labour market is still weak, and it will likely take a few more quarters before an improving economy flows through to the labour market. Employment of Taupō residents declined 2% over the year to December 2025. By far the biggest job losses were in construction (-112), followed by retail (-52) and professional services (-47). The number of Jobseeker Support recipients rose 7.2% over the year and the unemployment rate sat at an annual average of 4.6%, up slightly from 4.5% a year ago. Taupō’s unemployment rate is well below the national rate of 5.3%.
Despite economic pressures, several social indicators have improved. School attendance rose to 50% over the September 2025 year, up from 48% a year earlier, although still well below the national average of 58%. The crime rate has continued to trend downwards from 464 criminal proceedings over the year to December 2024 to 405 over the year to December 2025. Gaming machine profits have also declined since their peak in September 2023.
Gross Domestic Product
GDP in Taupo District was provisionally up 0.4% for the year to December 2025, compared to a year earlier. Growth was the same as in New Zealand (0.4%). Provisional GDP was $3,395 million in Taupo District for the year to December 2025 (2025 prices).
Business Counts
The number of business units in Taupo District was up 1.6% for the year to December 2025, compared to a year earlier. Growth was higher than in New Zealand (1.1%). The number of business units in Taupo District reached an annual average of 5,792 in the year to December 2025, up from 5,702 in the previous 12 months.
Consumer Spending
Electronic card consumer spending in Taupo District as measured by Marketview, decreased by 1.4% over the year to December 2025, compared to a year earlier. This compares with a decrease of 1.0% in New Zealand.
Tourism Expenditure
Total tourism expenditure in Taupo District decreased by 2.9% in the year to December 2025, compared to a year earlier. This compares with an increase of 1.1% in New Zealand. Total tourism expenditure was approximately $765 million in Taupo District during the year to December 2025, which was down from $788 million a year ago.
Guest Nights
Total guest nights in Taupo District decreased by 4.8% in the year to December 2025, compared to a year earlier. This compares with an increase of 1.9% in New Zealand. Visitors stayed a total of 1,365,300 nights in Taupo District during the year to December 2025, which was down from 1,433,600 a year ago.
Non-residential Consents
Non-residential building consents to the value of $84.3 million were issued in Taupo District during the year to December 2025. This compares with the ten year annual average of $53.0 million. The value of consents in Taupo District increased by 1.1% over the year to December 2025, compared to a year earlier. In comparison, the value of consents decreased by 4.6% in New Zealand over the same period.
Labour Market Indicators
Employment for residents living in Taupo District was down 2% for the year to December 2025, compared to a year earlier. The decline was greater than in New Zealand (1.2%). An average of 17,641 people living in Taupo District were employed in the year to December 2025.
Jobseeker Support recipients in Taupo District in the year to December 2025 increased by 7.2% compared to a year earlier. Growth was lower than in New Zealand (8.1%). An average of 1,678 people were receiving a Jobseeker Support benefit in Taupo District in the 12 months ending December 2025. This compares with the ten year annual average of 1,244.
The annual average unemployment rate in Taupo District was 4.6% in the year to December 2025, up from 4.5% in the previous 12 months. In the year to December 2025, the annual average unemployment rate in Taupo District was lower than in New Zealand (5.3%).
The annual average NEET rate in Taupo District was 13.6% in the year to September 2025, up from 13.1% in the previous 12 months. In the year to September 2025, the annual average NEET rate in Taupo District was higher than in New Zealand (13.3%).
You can read the full report below including dairy payout, house values & sales, vehicle registrations and more.
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