Quarterly Economic Monitor December 22

Taupō’s economy continues to grow at a healthy pace with GDP provisionally estimated to have increased 2.9% over the year to December 2022, which was on par with growth in the national economy (2.8%).

Taupō’s economy has been buoyed by a recovery in the tourism industry as international tourists return to New Zealand. Tourism expenditure over the year to December 2022 was up 16%, slightly lower than national growth of 19%, and guest nights were up nearly a quarter from a year earlier.

The agricultural sector has detracted from growth in the local economy with on-farm costs rising at the highest rate on record and incomes under pressure. Infometrics estimates that the pay-out to dairy farmers in Taupō will be $21m lower in the 2022/23 season compared with the previous season.

Taupō’s labour market is very strong with employment of residents increasing by 2.8% over the year to December 2022. Employment growth was led by construction, accommodation and food services, and professional services. The annual average unemployment rate has dropped to a very low 2.7%, its lowest level since March 2005. The number of Jobseeker Support recipients has dropped to 1,374 from a peak of 1,544 in December 2020.

Taupō’s builders will be busy this year as there is a strong pipeline of construction work. A total of 110 residential dwellings were consented in the December 2022 quarter, the highest level since June 2004. The value of non-residential consents over the December 2022 year was nearly double the ten-year average. The strength of the construction industry is reflected in the

growth of commercial vehicle registrations, up 10% in the year to December 2022 compared with a decline across most of the country. Car registrations were down by 15% which suggests that consumers are wary about making large ticket expenditures as the New Zealand economy heads towards recession.

Gross Domestic Product

GDP in Taupo District was provisionally up 2.9% for the year to December 2022, compared to a year earlier. Growth was higher than in New Zealand (2.8%)

Provisional GDP was $2,955 million in Taupo District for the year to December 2022 (2022 prices).

Annual GDP growth in Taupo District peaked at 8.3% in the year to June 2021.

Consumer Spending

Electronic card consumer spending in Taupo District as measured by Marketview, increased by 10.4% over the year to December 2022, compared to a year earlier. This compares with an increase of 10.3% in New Zealand.

Tourism Expenditure

Total tourism expenditure in Taupo District increased by 15.9% in the year to December 2022, compared to a year earlier. This compares with an increase of 18.9% in New Zealand. Total tourism expenditure was approximately $401 million in the Taupo District during the year to December 2022, which was up from $346 million a year ago.

You can read the full report below including Employment (place of residence), Jobseeker Support recipients, Unemployment rate, Dairy payout, Guest nights, Health enrolments, residential & non-residential consents, house values & sales.

qem-taupo-district-2022-12.pdf

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