Our booming region
Economic growth in North puts national figures to shame
New data shows Northland bucking economic trends with “phenomenal” spending figures and one leading business figure says people are “spending like there’s no tomorrow”.
Spending in Northland is up 14.8 per cent on a year ago and is said to show locals helping locals by spending in the region, a domestic tourism surge and strong primary production.
The second lockdown in Auckland, which effectively turned Northland into an island, was believed to be a factor in concentrating spending in the region.
Business leaders say the North is well positioned to benefit in jobs and spending from “shovel-ready” projects intended to be part of the country’s economic recovery.
The new figures from economic consultancy Infometrics show growth in Northland at 3 per cent while all of New Zealand saw a contraction of -3.2 per cent.
Northland’s strong growth was second only to the Tasman region (5.1 per cent) and ahead of Hawke’s Bay (2.7 per cent), Gisborne (2 per cent) and Nelson (2 per cent).
Of the 16 regions counted, seven showed growth. The worstperforming region was Auckland, with growth contracting 6.1 per cent.
Infometrics senior economist Brad Olsen – originally from Whanga¯rei – said Northland had been constrained from spending during the three months to June due lockdown.
Other figures told their own story, Olsen said, with car purchases leading a jump in car registrations of 9.1 per cent in the North in the September quarter.
There was a 41 per cent increase in domestic tourism spending in September, against 8.3 per cent for August and 27 per cent for July.
The coming summer months would likely see the boom continue as the region generally attracted people on holiday but it wouldn’t benefit from foreign tourists, Olsen said. Not only are Kiwis spending their holidays in Northland, more are moving here. Health enrolments were up, broadband figures showed a population increase and new figures to be released tomorrow would show Whanga¯rei the fifthmost-popular part of the country for those moving.
He said Northland was also enjoying the benefits of a strong primary production sector, exporting dairy, meat, fruit and vegetables.
Northland’s chamber of commerce – NorthChamber – president Tim Robinson, who runs the Bernina Northland Sewing Centre, said the data supported the experience in his business and what he had heard from others across Northland.
Robinson said the increase in Northland’s population reflected the region’s comparative isolation and distance from Covid-19 outbreaks.
There was also a sense people had been “spending like there’s no tomorrow” to ease the “sense of dread”.
“We sold so many high-end machines coming out of lockdown it wasn’t funny.
“We had people in the shop saying ‘I’ve got $20,000 burning a hole in a hole in my pocket – I’ll have a new machine thank you very much’.” NorthChamber vice-president Sue Wallace said the “shovel-ready projects” and a booming construction sector boded well for employment and wages.
“I believe Northland is in an enviable position compared to other regions.
“It’s balls to the wall.”