Napier buoyant says economic expert

MARY SHANAHAN
Napier's buoyant economy isn't likely to contract at the same rate as the national economy, says economic consultant Sean Bevin.
Based in Taradale, Mr Bevin says the Napier economy has notched up three years of solid growth performance.
On an annualised basis, it achieved a growth rate of 6.3 percent for the year to September 2005, compared to 4.4 percent for the region as a whole.
In an economic monitoring report done for the city council, he said Napier's rate of growth would slow over the coming year.
Because of the significant level of overall economic confidence in the area, however, a slow-down in the city's rate of growth over the coming year wasn't likely to be to the same degree as that nationally.
The most positive economic indicator movements recorded for Napier over the last year were a 48 percent rise in building consents for new homes, a 16 percent increase in the values of those consents, a 23 percent lift in retail sales and a 9 percent rise in new vehicle registrations.
Napier industries recording the most significant growth included building, retailing and wholesaling, hospitality and tourism services, transport and storage, financial and insurance services and community services such as education and health.
New dwellings and premises accounted for 70 percent of all building work approved by the council in the year to September and alterations 30 percent.
New commercial and industrial building were mainly made up of visitor accommodation and office and administrative facilities.
The number of visitors staying in commercial accommodation was up seven percent, while total nights spent in the area rose six percent.
A bright regional economy resulted in more people in work. Hawke's Bay employment grew by 8 percent in the year to September.
In Napier it was up 5 percent over the 12-month period and 12 percent during the past two years.
Since the 2001 census, Napier's population went up by some 1200 people - just over 2 percent - to currently stand at 56,400.
That's projected to increase to close to 59,000 by 2016. At the same time, the city's 65-plus age group is expected to rise by 27 percent.
The population gain over the last two years largely came from an increase of births over deaths, topped up by people moving to Napier.
Mr Bevin said new commercial developments in rural, manufacturing, residential, retail, transport and administrative and office sectors in recent months pointed to continuing general economic confidence within the city.
Key economic indicators show Napier's economic growth generally outpaced the region's.
According to Mr Bevin's report, Napier outperformed the country as a whole during the year, other than for the value of new non-residential building and in total property sales.
Average weekly income was up 5 percent on 2004.