Otago’s economy is the envy of many others \u2014 strong, resilient and growing, a new report says.<\/p>\n
The ANZ bank put the spotlight on Otago in a report released yesterday and called it one of New Zealand\u2019s most recession-proof regions.<\/p>\n
Unemployment remained low, more houses were getting built, there were more businesses, exports grew and the economy had diversified, the bank said.<\/p>\n
Growth was particularly dramatic in Queenstown Lakes, followed by Central Otago.<\/p>\n
Dairy and meat products were the top export earners for Otago and fruit had shifted from being a modest contributor to a major export pillar.<\/p>\n
“The regions are leading our economic recovery and Otago is the envy of many,” ANZ New Zealand business and agri managing director Lorraine Mapu said.<\/p>\n
“Its success shows what is possible when a region builds on its strengths and diversifies into high-value sectors such as tourism, horticulture and knowledge services.”<\/p>\n
The encouraging picture for the South was reinforced by Infometrics.<\/p>\n
Provisional estimates from the September quarter showed an economic turnaround had begun for most regions in New Zealand, the economic consultancy said.<\/p>\n
Southland and Otago were leading the way, Infometrics principal economist Nick Brunsdon said.<\/p>\n
Gross domestic product rose in Southland by 2.3% a year and Otago by 2.1%, compared with a 0.9% national increase, he said.<\/p>\n
“All regions of the South Island are growing faster than the national average, boosted by better primary sector returns.”<\/p>\n
ANZ said the total number of businesses across Otago had grown significantly between June 2018 and June this year.<\/p>\n
The bank said the number of businesses in Queenstown Lakes went from 8947 to 12,584 \u2014 a 40.6% increase.<\/p>\n
“This reflects the district\u2019s rapid population expansion and strong entrepreneurial culture.”<\/p>\n
Business growth for Central Otago was 26.7% and for Dunedin 20.3%.<\/p>\n
Dunedin\u2019s education, healthcare and professional services continued to anchor the economy, ANZ said.<\/p>\n
It presented Dunedin firm Oritain as a case study, describing it as a global leader in verifying where products and services came from.<\/p>\n
“It is a great example of the significant value the education sector brings to Otago and what is possible when smart ideas are backed by the right support,” Ms Mapu said.<\/p>\n
She also highlighted Cromwell-based cherry grower and exporter 45 South.<\/p>\n
The company had invested in innovative technology, capturing new opportunities in high-value food production, Ms Mapu said.<\/p>\n
ANZ southern business and agri manager Cameron Reed said Otago\u2019s low JobSeeker Support rate of 3.4% stood out.<\/p>\n
“We\u2019ve got other regions that are over double that,” he said.<\/p>\n
“Overall, the numbers paint a really positive picture of Otago.<\/p>\n
“Our economy is in a better position than the national average, particularly with the strong connection to primary industry growth.”<\/p>\n
ANZ said its business lending in South Canterbury, Otago and Southland had grown.<\/p>\n
Lending to small businesses there had increased in the past year by 5% and commercial lending was up 19%, the bank said.<\/p>\n
Business South chief executive Mike Collins said it was important to maintain momentum.<\/p>\n
“Tourism is on the bounce-back and the construction industry is starting to come through again,” he said.<\/p>\n
“Even retail numbers are starting to pick up.”<\/p>\n
Consumer confidence was returning, he said.<\/p>\n
Southland District Mayor Rob Scott said the region\u2019s growth was becoming a theme.<\/p>\n
“I think it\u2019s reflective of the hard-working people and businesses in our province who are continually making a positive contribution to NZ Inc.”<\/p>\n
Business growth since 2018<\/p>\n
Queenstown Lakes 40.6%<\/p>\n
Central Otago 26.7%<\/p>\n
Dunedin20.3%<\/p>\n
\u2014 Source: ANZ<\/p>\n