Gisborne’s economy still growing, upside evident

A109 Light Utility Helicopter flight with mayor Gisborne City from the air in November 2023.

GISBORNE has received more good news about the region’s booming economy, after a new economic report from a leading bank says Gisborne’s economy has the second-highest growth rate in the nation and predicts it will grow even more.

The latest ANZ Regional Trends report shows that regional economic activity here grew 4.5 percent over the past 12 months, with only Bay of Plenty (5.7 percent) showing a higher growth rate.

Gisborne’s 1 percent rise in regional economic activity over the past quarter was the highest in New Zealand.

“This extended the run of quarterly expansions to over a year now”, the report said.

Annual growth to date was also “solid” at 3.4 percent.

“Property market tailwinds were evident. Sales activity rose for residential housing (plus 12 percent quarter-on- quarter) and the rural sector (plus 29 percent q/q) after a sluggish finish to 2015.

“Houses were sold 19 days faster and prices lifted 5 percent, compared to December to be up 10 percent over the year.”

Although the unemployment rate was higher, there were also more people employed.

“Job ads were up 2 percent so demand remains for further job creation. Guest nights accelerated, and car registrations and concrete production were up — rounding out the activity thrust in the region.”

Commercial building permits (including all non-residential consents) more than doubled in value in the first quarter of the year, with seasonally-adjusted figures rising more than 50 percent from the same three-month period last year to a total value of $7.8m.

The report also hinted at a positive near-term future outlook for Gisborne

“Internet job ads accelerated (plus 9.4 percent), car registrations are up and continued real estate activity in April all point to the current expansion continuing.”

Section sales were also up 66.7 percent from the same three-month period last year, while house prices rose 6.6 percent to an average of $270,000. Retail sales also rose 8.2 percent.