Full economic effects yet to be felt, councillors told

CENTRAL OTAGO

THE full impact of Covid19 has yet to significantly affect Central Otago’s economy but it could still be coming.

The biggest threat to the Central Otago economy remained a resurgence of the pandemic, particularly more virulent strains, but other effects would become more apparent in the first quarter of this year, Central Otago District Council economic development manager Nick Lanham said.

He delivered that warning alongside his economic recovery plan progress report at the first full meeting of council in Alexandra yesterday.

The report was the third update on the economic recovery plan adopted by the council in June to gauge the effect of Covid19 on Central Otago’s economy and action it could take to support the district’s economic recovery.

In Central Otago the number of people on Job Seeker support increased from 70 to 273 during lockdown, decreased to 198 by November and continued to ‘‘track down’’, Mr Lanham said.

Central Otago’s economy continued to perform well before Christmas, although card spending data compared with the corresponding period last year showed a softening in early December and the drop in expenditure since was beginning to be felt now.

The effect of the loss of international tourism had been softened by buoyant domestic tourism, particularly through the summer months.

‘‘To date we haven’t missed international tourism,’’ Mr Lanham said.

That loss would become more apparent in the coming months.

The construction sector throughout the district continued to perform well.

Central Otago’s ‘‘strong agricultural base’’ was also a factor in the district’s economic welfare, Mr Lanham said.

The effect on Central Otago’s economy from last month’s heavy rain was also yet to be felt.

It significantly affected the cherry harvest.

The full effect on crops would not be known until the end of harvest, he said.