First report of Covid 19 impacts on Coromandel economy

Economic consultancy Infometrics has released fresh data for the March quarter - traditionally the Coromandel's strongest quarter - showing lower tourism and trade activity over the first two months of 2020 combining with a collapse in activity at the end of March.

With the lockdown only in effect for the last six days of March, estimates for June will be far more dire, Infometrics predicts.

Thames-Coromandel experienced the largest increase in Job Seeker Support last month (April), when the levels were 68 per cent higher than March.

Local construction activity is also set to soften, with a lower profile of building expected over the next year, reinforced by annual residential consent growth of just 1 per cent.

"Due to Covid-19, we expect extreme levels of uncertainty among both businesses and households to drive consents lower throughout the rest of 2020 and 2021. We also believe that some confidence effects are already apparent in data for the month of March," Infometrics says.

Ministry of Business, Innovation and Employment (MBIE) data shows tourism spending in the Coromandel remained above $400 million in the March 2020 year, up 5.1 per cent on the previous 12 months.

However, with the collapse in international tourism spending since late March, the tourism sector faces tough times, and will need to compete for a limited pool of domestic tourism spending.