Region records largest GDP growth since 2005
Unemployement rate also fell to 3.8 per cent in 2022
The largest GDP growth in Whanganui for nearly 20 years has come with a reminder of how local businesses are still in difficult times. Whanganui’s GDP grew by 5.6 per cent, higher than the national figure of 5.3 per cent, and also higher than neighbouring areas Palmerston North (5.1 per cent) and New Plymouth (4.6 per cent), according to infometrics data released by economic development agency Whanganui & Partners (W&P).
The year-on-year growth is the highest it has recorded since 2005, when growth was 5.8 per cent.
Employment figures also improved, with unemployment falling from 5.7 per cent in 2021 to 3.8 per cent in 2022.
W&P chief executive Hannah Middleton said it was encouraging to see Whanganui outperforming national averages.
“We are seeing a reflection of Whanganui’s strength and diversity. This helps our economy continue to remain resilient and agile,” she said.
In line with the GDP growth, the region’s top seven industries also saw growth.
“We saw growth in our manufacturing sector, primary industries, retail, construction, and professional, scientific and technical services,” Middleton said.
Mainstreet Whanganui general manager Des Warahi said it was heartening to see the local economy showing resilience, especially given the challenging national economic environment.
“Our CBD businesses and retailers have had to endure some very tricky periods over the past few years — so good news like this is very welcome, and we hope to see these positive trends continue,” he said.
He thought the return of many local events this year such as the Whanganui Vintage Weekend and The Cemetery Circuit attracted visitors to the region, brought locals out and helped play a role in the growth.
However, Whanganui Chamber of Commerce chief executive Helen Garner said while there was good news in the numbers, there were still issues in local businesses.
“Times are extremely difficult, and I don’t think it should be underestimated how much time and effort is going into keeping these businesses viable.”
While there had been a rise in GDP, many businesses in town were still dealing with the same issues they have been for the previous year.
“From a business perspective . . . we still have the same issues, we still have supply chain issues, roading, inflation, worker shortages, rising costs, issues with access to capital,” she said.
In particular, she noted the retail sector seeing growth — despite many people struggling in a cost of living crisis — may not be down to actual growth in the sector, but due to the cost of many household items increasing dramatically.
“The retail inclusion always makes me a bit nervous, because absolutely we want people to spend, but we know what that’s related to. Is this genuine growth and a benefit to the community? Or is this the price of everything going up?” she said.
With businesses still dealing with issues, Garner gave credit to business owners for having to innovate and rely on good leadership to adapt to the times.
“People are looking at things differently, they are looking at productivity, they’re looking at efficiency to get them through.”
W&P’s data aligns with Garner’s statement.
“We saw productivity growth of 2.8 per cent in Whanganui last year, compared to Aotearoa’s average 2.3 per cent,” Middleton said.
Despite unemployment in the region decreasing compared to 2021, Garner said there was still a worker shortage and, crucially, a shortage of skilled workers in the city. With the worker shortage, she said many businesses have had to get smarter with how they use their workers, and have become more efficient as a result.
“It’s the ones that are resilient, that are innovative, that are progressive in their thinking, and with systems that are focused on productivity [and] looking for best-practice examples — those are the ones that are really raising the bar for the region,” she said.
She expected 2023 to continue to be difficult, and said local businesses should continue looking for ways to improve how they operate.