Hamilton’s economy is outperforming others

Hamilton continues to have one of the country’s best-performing economies, with GDP surging past the $13 billion mark for the first time, Hamilton City Council reports.

The council has published its 2022 Annual Economic Report, giving an insight into Hamilton’s economy, development and people during the 2022 calendar year.

The report also provides an outlook for Hamilton and the wider economy in 2023.

HCC growth funding and analytics manager Greg Carstens said Hamilton’s record level of industrial consents (129,000sq m) in 2022 was remarkable, especially given it occurred at a time when business and consumer confidence were at all-time lows. The city also spent half of 2022 under some form of Covid-19 restriction.

Industrial growth was spearheaded by development at the Ruakura Superhub and in Rotokauri and was worth almost $194 million.

“Industrial consenting was the leading economic highlight for Hamilton in 2022,” Carstens said.

“It was the highest on record both in terms of square metres and value of construction and was nearly three times higher than any other year on record. The outlook for new industrial development remains strong, with consents for nearly 47,000sq m of new industrial floor area granted in the first four months of 2023.”

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Hamilton’s GDP reached $13.4b in 2022, representing an annual increase of 4.1 per cent — outstripping GDP growth in Wellington (1.8 per cent), Auckland (3.1 per cent) and Dunedin (3.2 per cent).

Nearly 3700 new jobs were filled last year, a rise of 3.7 per cent. More than half of the new jobs were in healthcare, construction and manufacturing.

Carstens said the prospects for Hamilton’s economy in 2023 is subdued given the outlook for the national and global economies but is still expected to perform strongly compared to other major New Zealand cities. Hamilton remains an attractive location for new and expanding businesses.

“Yes, the outlook is not for the phenomenal growth as we’ve seen in recent years, but the past few years have shown just how resilient Hamilton’s economy is and it has outperformed most other cities. Things will slow in the short-term but the long-term strategic value proposition for Hamilton has not changed.”

Hamilton’s population grew by 800 people (0.4 per cent) in 2022, reaching 179,900.