The Western Bay of Plenty economy is performing well above the rest of the country, new reports show.
The subregion as a whole recorded GDP growth of 5.1 per cent last year - almost double the national average of just 2.7 per cent.
Tauranga's growth was 4.4 per cent, and the Western Bay of Plenty District was 6 per cent, according to new reports commissioned by Priority One from Infometrics.
Priority One chief executive Nigel Tutt said the strong economic growth seen in the Western Bay of Plenty sub-region over the past two years was translating into increased jobs, higher GDP growth than the national average, and the evolution of a higher value economy.
"What it shows is that clearly, this subregion is performing well above the rest of the country," he said. "It's almost double the national average, which shows the trends are pointing in the right direction and the subregion, in general, is doing a good job."
Mr Tutt said it was good to see the strong growth in new businesses, employment and especially in knowledge intensive industries. (See accompanying story)
The labour market reflected economic growth, with 4178 new jobs created representing 5.1 per cent growth compared to the New Zealand average of 1.6 per cent. Job growth was strong across the majority of local industries.
The real estate sector was a leading contributor to GDP growth in Tauranga, with agriculture, forestry and fishing a key growth element in the Western Bay of Plenty District.
They say in 20-30 years, half the jobs that exist today will be gone. The future is in this knowledge area, and it's good we are making a start down that track.
Tauranga saw increased jobs in construction (764 new jobs), professional, scientific and technical services (390), and agriculture, forestry and fishing (349). In the Western Bay District, key job creation sectors included agriculture, forestry and fishing (452), administrative and support services (261), and manufacturing (222).
"Clearly we're still very strong in transport and logistics thanks to the port, and horticulture remains strong," said Mr Tutt. "But it's pleasing to see the growth wasn't specific to certain industries but was across the board."
Tauranga Mayor Greg Brownless said the latest data was great news.
"Especially as we're seeing growth in industries that aren't perhaps the traditional ones we have here," he said. "They say in 20-30 years, half the jobs that exist today will be gone. The future is in this knowledge area, and it's good we are making a start down that track."
Among broad industry sectors, manufacturing was the largest in Tauranga in 2016, accounting for 9.1 per cent of total GDP. The second largest was rental, hiring and real estate services (8.9 per cent), followed by health care and social assistance (8.9 per cent). Tertiary industries accounted for the largest proportion of GDP (35.8 per cent), higher than in the national economy (28.4 per cent).
However, taking into account relative sector sizes, the industry that made the largest contribution to Tauranga's GDP growth was rental, hiring and real estate services. That sector grew by 12 per cent over the year and contributed 0.99 percentage points to the district's total growth of 4.4 per cent. The next largest contributor was construction (0.82 percentage points), followed by professional, scientific and technical services (0.57 percentage points).