New GDP data shows which NZ regions took the biggest pandemic hit

The impact of lockdowns and border closures meant a wide variation in regional GDP. In Taranaki it declined 5.8 per cent in the first year of the pandemic. Photo / Supplied

A new regional breakdown of GDP data by StatsNZ shows which regions were hit hardest by the first year of the pandemic.

The impact of lockdowns and border closures meant a wide variation in regional gross domestic product (GDP) - ranging from a 5.8 per cent decline in Taranaki to a 3.7 per cent increase in Marlborough over the year to March 2021, Stats NZ said.

Otago - where the absence of tourists in Queenstown had a heavy impact - was the other region in negative territory, with GDP down 2.2 per cent.

The regional results compare to the national increase of 0.8 per cent over the same period.

The Wellington region recorded the highest GDP per capita in the year to March 2021.

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GDP per capita measures economic output divided by the number of people in the region.

Wellington's GDP per capita was $75,319, ahead of Auckland on $70,952. The national average GDP per capita was $63,955.

This was the first time since the series began in 2000 that Auckland had entered the second spot, nudging out Taranaki on $70,626, StatsNZ said.

Several regions' GDP per capita figures fell during the year to March 2021, including those of Wellington and Auckland.

Meanwhile, a survey out today offers a more up-to-date snapshot of economic confidence in the regions over the first quarter of this year.

The Westpac McDermott Miller Regional Economic Confidence found household economic confidence plunged across the regions over the March quarter.

"The combined impacts of Omicron and the rising cost of living were widespread, with all but two regions in pessimistic territory over the quarter," Westpac chief economist Michael Gordon said.

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Northlanders remained the most pessimistic in the country. However, economic confidence plummeted the most in Otago, Taranaki/Manawatu-Whanganui and Wellington households over the quarter.

"Southlanders bucked the trend. Still buoyed by record-high meat and dairy prices, confidence in Southland households remains comfortably in positive territory," Gordon said.

Waikato was the only other region in positive territory, with the dairy industry charging ahead and the milk price on course for a record high.

"As Omicron cases peak and as Covid restrictions ease, we expect some lift in regional economic confidence next quarter," Gordon said.

"However, ongoing rises in the cost of living may temper the magnitude of any recovery."

The survey was conducted over March 1-17, 2022, with a sample size of 1559.