Quarterly Economic Monitor June 2025

The Taupō economy is still struggling but there are signs that the worst might be over. Infometrics provisionally estimates that the Taupō economy contracted by just 0.1% in the June 2025 quarter, compared with the same quarter last year, the smallest quarterly contraction since March 2024 quarter. Over the year to June 2025 GDP declined 1.1%, compared with a decline of 0.8% in the national economy.

Positive signs for the economy include a 2.1% increase in the number of businesses over the year to June 2025 and a slight uptick (1.3%) in the registration of commercial vehicles which might signal an improvement in business confidence.

After a long period of recovery in international tourism spending in Taupō the local industry is hitting hard times again. A 4% decline in domestic tourist spending over the year to June 2025 more than outweighed a 6% increase in international spending, resulting in a total decline of 1.4%. With inflation running at 2.7%, the real decrease in volume of tourism services delivered was significant. This is reflected in the 4.3% drop in guest nights at commercial establishments over the year.

The economic downturn has been felt by many industries beyond tourism. Construction has experienced the largest fall in activity, declining more than 10% over the year to June 2025. The energy sector and professional services also experienced large falls in output.

Taupō’s labour market is still very weak and has probably not reached its lowest point given that the labour market lags the economy. The number of Taupō residents in employment declined 2.2% over the year to June 2025. The industries shedding the most jobs were retail trade (-142), construction(-137) and accommodation and food services (-86). With fewer job opportunities the number ofJobseeker Support recipients reached 1,710 in the June 2025 quarter, an increase of nearly 10% since the same quarter last year.

Activity in the Taupō property market has ramped up with house sales increasing 18% over the year to June 2025. New listings increased at a slower pace (13%) which will exert upward pressure on prices. The average Taupō house value was $740,000 in the June 2025 quarter, up 1.9% compared to the same quarter last year.

Gross Domestic Product

GDP in Taupō District was provisionally down 1.1% for the year to June 2025, compared to a year earlier. The decline was greater than in New Zealand (0.8%).

Provisional GDP was $3,352 million in Taupō District for the year to June 2025 (2024 prices).

Business Counts

The number of business units in Taupō District was up 2.1% for the year to June 2025, compared to a year earlier. Growth was higher than in New Zealand (0.9%).

The number of business units in Taupō District reached an annual average of 5,754 in the year to June 2025, up from 5,633 in the previous 12 months.

Consumer Spending

Electronic card consumer spending in Taupō District as measured by Marketview, decreased by 0.4% over the year to March 2025, compared to a year earlier. This compares with a decrease of 1.4% in New Zealand.

Tourism Expenditure

Total tourism expenditure in Taupō District decreased by 1.4% in the year to June 2025, compared to a year earlier. This compares with no change in New Zealand.

Total tourism expenditure was approximately $780 million in Taupō District during the year to June 2025, which was down from $791 million a year ago.

Guest Nights

Total guest nights in Taupo District decreased by 4.3% in the year to June 2025, compared to a year earlier. This compares with a decrease of 0.7% in New Zealand.

Visitors stayed a total of 1,414,000 nights in Taupo District during the year to June 2025, which was down from 1,476,900 a year ago.

Labour Market Indicators

• Employment for residents living in Taupo District was down 2.2% for the year to June 2025,compared to a year earlier. The decline was greater than in New Zealand (1.5%).

  An average of 17,646 people living in Taupo District were employed in the year to June 2025.

• Jobseeker Support recipients in Taupo District in the year to June 2025 increased by 13.9% compared to a year earlier. Growth was higher than in New Zealand (11.7%).

  An average of 1,666 people were receiving a Jobseeker Support benefit in Taupo District in the 12 months ending June 2025. This compares with the ten year annual average of 1,205.

• The annual average unemployment rate in Taupo District was 4.5% in the year to June 2025, up from 3.9% in the previous 12 months. In the year to June 2025, the annual average unemployment rate in Taupo District was lower than in New Zealand (5.0%).

• The annual average NEET rate in Taupo District was 13.3% in the year to June 2025, down from 13.5% in the previous 12 months. In the year to June 2025, the annual average NEET rate in Taupo District was higher than in New Zealand (12.9%).

You can read the full report below including dairy payout, residential & non-residential consents, house values & sales, vehicle registrations and more.

Infometrics QEM - Taupo June 2025.pdf

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