Hawke's Bay region's economic output grows

Hawke's Bay's regional economy has grown in value by $342 million, new statistics show.

Latest provisional data from Statistics New Zealand shows the Hawke's Bay's Regional Gross Domestic Product rose $342m for the year ended March 2017 - and is now worth $7.4 billion.

Matariki - Regional Economic Development Strategy project manager Gerard Quinn said the numbers were encouraging.

"If we take out the four metro regions, we have the fifth best GDP of the remaining regions. Over the last five years, our GDP growth has been almost identical to Waikato's, a very successful region."

Manufacturing, which was worth $991m a year, remained the largest contributor to the economy, adding an extra $63m over the year. Primary manufacturing ($734m) accounted for more than three quarters of the manufacturing sector's overall contribution.

"It's encouraging that manufacturing was the largest contributor to Hawke's Bay's GDP, meaning that we are adding value to our predominantly agricultural sector base," Mr Quinn said.

The other main sectors in the economy were agriculture (worth $699m) and healthcare (worth $501m).

Mr Quinn added that while the figures were encouraging, they also showed where there was more work to do.

"GDP shouldn't be taken as a single indicator of wellbeing, perhaps it being seen as the income flow that is able to fund consumption and investment is a better way to look at it.

"GDP also does not distinguish between how the activity has been funded and where productive capacity is being targeted.

"The vision of Matariki is that Every Household and Every Whanau is actively engaged in, contributing to and benefiting from, a thriving Hawke's Bay Economy".

Many factors outside Matariki determine GDP (such as exchange rates, export prices etc).

Matariki's goals (increase the median household income, accelerate job growth, and to be in the top quartile for regional growth) and the actions and projects underpinning them, till the soil of the regional economy so that increased GDP is more likely.

"Our GDP increase means increased wealth around the region, but at the same time Housing affordability is declining. Our average household income dropped slightly in relation to the NZ average.

"It's good to see that our scientific and technical sector contributes as much to GDP as retail, so that should assist us to move the median income higher.

"Tourism's contribution to Hawke's Bay's GDP has seen a meteoric lift since 2015, and it would be great to see the proportion of overseas dollars into the region increase even further."

The region's GDP/Capita of $45,651 was still behind the national average of $57,002.

Mr Quinn said while it was rising towards the national average, more needed to be done.

"We need to do better, as this reflects how smart we are at making things and extracting better market prices for what we choose to make.

"So, all in all, it's a promising period for Hawke's Bay to capitalise on the great, collaborative work being done under the Matariki banner."

The gross domestic product (GDP) of all 15 regions increased. The national GDP increase was 6.2 per cent (up $15.9 billion).

New Zealand's total nominal GDP was $270.6 billion – the North Island contributed 77.3 per cent of this, compared with 22.7 per cent for the South Island.

The Bay of Plenty region had the largest percentage increase (9.0 per cent), followed by Northland and Waikato (both 8.2 per cent) and Southland (7.9 per cent). Wellington region had the smallest increase (4.6 per cent).