17 hours ago
Taranaki economy takes hit in latest quarterly report
Photo:
David Hancock
Taranaki's latest quarterly economic report card makes challenging reading with the region's economy contracting 3.1 percent compared to the 1.1 percent drop nation-wide.
The region's employment figures have also dropped 1.8 percent and consumer spending has fallen 1.9 percent.
On the positive side, there is a 31 percent increase in the region's dairy payout to $1.8b this season and a 13 percent jump in property sales and a 23 percent increase in the number of building consents issued.
The Informetrics Quarterly Economic Monitor
report
was commissioned by the regional development agency Te Puna Umanga Venture Taranaki.
Director of Strategic and Sector Partnerships, Anne Probert, said the report provided a clear, objective snapshot - presenting both the strengths and the challenges shaping the region's economic landscape.
"This report is something we specifically commission for Taranaki because it's vital that our region has access to independent, timely data. It's about being informed, realistic, and proactive about the trajectory of the region."
Probert said the figures reflected broader pressures felt across Aotearoa, as cautious spending patterns continue to influence business and household behaviour.
Taranaki was also experiencing more localised impacts.
"We're at the pointy end of the accelerated decline in gas production, and that's flowing through many of our industry sectors, particularly engineering and specialist supply chains, adding a further dimension to our economic situation, said Probert
However, amid these pressures, the region's primary sector was showing significant strength.
The dairy payout for Taranaki was forecast to reach $1.8b this season, a 31 percent increase from last year, thanks to rising global commodity prices and a lower exchange rate boosting export returns.
"This is a much-needed boost for our rural communities, who have been contending with the impacts of
drought
and other challenges," Probert said.
"Given the critical role that farming plays across our entire economy, from the farm gate to support services, manufacturing, logistics and retail, this upturn has flow-on benefits for the whole region."
Adding further momentum to the sector, Fonterra had announced significant investments in Taranaki, including the electrification of its Whareroa plant and the development of new cool store facilities demonstrating long-term confidence in the region's agri-food future.
The economic report also highlighted early signs of a turnaround in the housing market.
House sales were up 13.2 percent over the year in the region, and the number of residential building consents has jumped nearly 23 percent.
Probert said while house prices had remained steady, the increase in sales and listings points to renewed interest, driven in part by the region's lifestyle appeal and comparative affordability.
Venture Taranaki chief executive Kelvin Wright said it was clear the region faced challengers, but that there were also positive signs of momentum.
"The report highlights the importance of having the regional economic development strategy in place, Tapuae Roa, to ensure we're making the most of our region's strengths and capitalising on emerging opportunities."
Taranaki's Economic Snapshot over the year to March 2025:
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