As the overall Rotorua economy continues to grow, some sectors are recording faster growth than others.

The Ministry of Business, Innovation and Employment (MBIE) released its Gross Domestic Product (GDP) figures for each region last week.

Overall GDP in Rotorua rose 8 per cent from $3348.7 million in 2015 to $3496.7 million in 2016 and then again to $3777.5 million in 2016.

The agriculture and manufacturing sectors experienced the most growth in the Rotorua district from 2015 to 2016.


The annual GDP for forestry and logging for the year ended March 2016 was $199.5 million up from $166.7 million the year before.

New Zealand Forest Owners Association research development manager Russell Dale said the result might have been a combination of things.

"The main reason has been a buoyant, strong market for logs by both our domestic-based processing industries and also from offshore," Dale said.

"We've seen a period of stable, strong demand for logs that's resulted in forest owners increasing the level of harvest and that then flows through to contracts for logging and into replanting. All of that economic activity is contributing to the increase in GDP."

Dale said there had also been investment in processing in the region and growth at Red Stag.

He said there was demand domestically and internationally and he expected the growth to continue under the Labour-NZ First Government.

"Forestry is high on the agenda of the new Government. They've raised the priority to contribute to regional development but also climate change. That coupled with strong markets will result in a lot of interest in forestry."

Meanwhile the annual GDP for agriculture for the year ended March 2016 was $178 million, up from $156.8 million the year before but still not as high as in 2011 when it grossed $185.9 million.


Federated Farmers Rotorua representative Alan Mills said the price of beef and dairy were both good, which could have contributed to the figures.

"Any growth in agriculture will trickle down through the economy. Farmers will spend the money once they've got the money."

Mills said studies had shown each farm created about 30 jobs in the wider community.

Destination Rotorua's executive manager of investment, growth and intelligence Rebecca Wright said the city's economy was diverse.

"It includes forestry and wood processing, tourism, geothermal, agribusiness, education, health, manufacturing and social services. We are seeing positive growth in all sectors.

"Log prices, dairy prices, meat, lamb and wool, housing prices, visitor spend and investment are all positive."

She said Rotorua as a destination was going from strength to strength.

While construction hadn't seen a huge increase in the year to 2016, it had experienced a boom in the last decade in Rotorua - from $118.94 million in 2006 to $188.3 million in 2016.

Registered Master Builders Association spokesman for Rotorua Bill Clement said there were a lot of small things that contributed to that.

"There has been a big influx of people into town from places like Auckland.

"People are reasonably confident and using money to improve the assets they have," Clement said.

"I don't think there's been a shortage [of work]. Most of our guys have been pretty busy doing more upmarket homes. There are still a lot of renovations going on."

In Rotorua the biggest contributor to GDP in 2016 was $295.4 million from GST on production, import duties and other taxes followed by $253.8 million from healthcare and social assistance.

The lowest contributor was the $2.6 million brought in by mining.

What is gross domestic product (GDP)?:
- New Zealand's official measure of economic growth.
- Measures the total value of goods and services produced.

Highest contributors to 2016's GDP
- GST on Production, Import Duties and Other Taxes: $295.4 million
- Owner-Occupied Property Operation: $246.5 million
- Health Care and Social Assistance: $253.8 million
- Rental, Hiring and Real Estate Services: $209.4 million
- Forestry and Logging: $199.5 million
- Construction: $188.3 million
- Transport, Postal and Warehousing: $182.9 million
- Agriculture: $178.1 million
Lowest contributors
- Administrative and Support Services: $29.4 million
- Metal Product Manufacturing: $28.8 million
- Information Media and Telecommunications: $20.08 million
- Non-Metallic Mineral Product Manufacturing: $7.5 million
- Textile, Leather, Clothing and Footwear Manufacturing: $5.4 million
- Printing: $3.5 million
- Furniture and Other Manufacturing: $2.65 million
- Mining: $2.56 million