Regional gross domestic product: Year ended March 2018

Regional gross domestic product (GDP) is a geographic breakdown of national-level GDP, which is New Zealand's official measure of economic activity. Figures are expressed in nominal terms, which means they are not adjusted for price effects.

Key facts

Provisional estimates for the year to March 2018 show:

• The nominal gross domestic product (GDP) of 14 of the 15 regions increased. Otago had the largest percentage increase (8.6 percent), followed by Waikato (7.5 percent) and Tasman/Nelson (7.3 percent). The national GDP increase was 5.5 percent (not adjusted for price effects).
• West Coast was the only region whose GDP decreased, falling 1.8 percent.
• Of the main urban centres, Auckland increased 5.3 percent, followed by Wellington (4.7 percent) and Canterbury (4.6 percent).
• Auckland’s contribution to national GDP remained at 37.9 percent. Wellington’s contribution dropped to 13.0 percent and Canterbury’s to 12.4 percent. The West Coast made the smallest contribution to national GDP, with 0.6 percent, slightly less than Gisborne’s 0.7 percent.
• Wellington overtook Taranaki as the region with the highest GDP per capita, at $71,622. Annual revisions from national accounts improvements show Wellington had the highest GDP per capita from 2016. In 2018, Taranaki’s GDP per capita was $68,427, followed by Marlborough at $65,084 and Auckland at $64,223.
• New Zealand’s total GDP was $284.7 billion. The North Island contributed 77.6 percent to total GDP, compared with 22.4 percent for the South Island.

New Zealand’s regional economies 2018 visually presents the key measures of the 15 regional economies.

• Overview of economic events affecting regional economies 2013–18
• Background to regional GDP
• Regional summaries
  • Northland
  • Auckland
  • Waikato
  • Bay of Plenty
  • Gisborne
  • Hawke’s Bay
  • Taranaki
  • Manawatu-Wanganui
  • Wellington
  • Tasman and Nelson
  • Marlborough
  • West Coast
  • Canterbury
  • Otago
  • Southland

Overview of economic events affecting regional economies 2013–18

Between 2013 and 2018, New Zealand’s economy expanded by $67.2 billion in nominal terms, or 30.9 percent (an average of 5.5 percent compounding effect per year). Important themes over the 2013–18 period included international commodity price volatility, the Canterbury/Kaikōura earthquakes and rebuild, and record increases in tourism and immigration. All these factors will have interacted to drive differences in regional economic activities and performance.

Primary industries

Several events have adversely affected the primary sectors since 2013.

• Over 2012–13, a serious drought affected primary production in many parts of the country, with some agriculturally dependent regions particularly hard hit.  In December 2017 a drought was declared in the Taranaki, Wanganui-Manawatu, and Wellington regions and was particularly severe in Taranaki.
• Dairying is New Zealand’s most significant agricultural activity, with a strong presence in many regions.  Volatile international milk prices can result in large variations in the farmgate milk price paid to dairy farmers. The impact of this is evident in the large swings in the value of the regions’ agriculture industries. Other agricultural products are affected by price volatility, but the significance of dairy means the ‘milk price effect’ will generally dominate.

• Falls in the world prices of raw fossil fuel commodities such as oil, coal, and natural gas from late 2015 had a significant impact on the mining industry, although commodity prices have since partly recovered.  The industry’s value added in 2017 was about $1.3 billion lower than for 2013. Mining as a share of the total economy fell from 1.7 percent in 2013 to 0.9 percent in 2017. Oil and gas extraction are particularly important to the Taranaki region.

Construction

The construction industry featured prominently over 2013–18. After the Canterbury earthquakes, rebuild activity in the region saw construction’s share of the Canterbury economy rise from 5.9 percent in 2011 to a peak of 10.0 percent in 2016.  In the March 2017 year construction made up 6.3 percent of the national economy (5.4 percent in 2013). Large increases in the value added contribution of construction in the March 2017 year were evident in seven regions, with three exceeding 20 percent (Northland, Auckland, and Bay of Plenty).

Tourism

The huge surge in short-term visitor arrivals brought flow-on benefits to industries supplying goods and services to tourists (transport, accommodation, food, and beverages).  In the March 2018 year, a record 3.8 million short-term visitor arrivals was recorded, compared with 2.6 million in 2013.

The graph below shows national GDP for selected industries: dairy cattle farming; primary manufacturing; construction; and rental, hiring, and real estate services for the years ended March 2013–17.

Background to regional GDP

Regional GDP measures the contribution and make-up of economic activity for New Zealand’s 15 regions. The series is consistent with published national accounts for industry and total GDP, also in current prices.

National accounts (industry production and investment): Year ended March 2017 is produced from reconciled goods and service flows that are an outcome of the annual balancing process. These statistics form the basis of the industry dimension used in regional GDP. For most industries, regionalisation is implemented using geographical information from the Business Frame, Annual Enterprise Survey, and Linked Employer-Employee Data.

Regional data for the year to March 2018 is provisional. It uses indicators that have a regional dimension, with total GDP benchmarked to data in the National accounts (income and expenditure): Year ended March 2018.

The time series available for regional GDP covers the March 2000–18 years, with an industry breakdown for 2000–17.  The full time series is available on Infoshare and is available as a CSV file in the Download data section on this page.

The next sections provide key points on the economic characteristics and composition of the 15 regions. See the Excel tables and infographic for further information.

Regional summaries

From March 2013 to March 2018:

• Northland had the largest increase in GDP (up 39.1 percent), followed by Bay of Plenty (up 38.7 percent) and Auckland (up 38.5 percent).
• Auckland’s contribution to national GDP rose 2.1 percentage points (to 37.9 percent); Wellington’s contribution fell 0.8 percentage points (to 13.0 percent); Canterbury’s contribution fell 0.3 percentage points (to 12.4 percent).
• The South Island’s contribution to GDP fell 0.3 percentage points.

Northland

• From 2013–18, Northland’s economy increased 39.1 percent (national increase was 30.9 percent).
• The 2013–18 increase was driven by manufacturing; rental, hiring, and real estate services; and agriculture.
• In 2016, Northland’s GDP increased 7.9 percent, led by manufacturing; rental, hiring, and real estate services; and fishing, forestry, and mining.
• In 2017, Northland’s GDP increased 8.4 percent. Nearly half this rise was due to agriculture (led by dairy farming). The next largest contributors were rental, hiring, and real estate services; and construction.
• In 2018, Northland’s GDP increased 5.8 percent, driven by owner-occupied property operation; manufacturing; and retail trade. The smaller increase this year was mainly due to agriculture (dairy cattle farming) contributing less following the large increase in the farm-gate milk price in 2017.

Auckland

• From 2013–18, Auckland’s economy increased 38.5 percent (national increase was 30.9 percent). Over this period Auckland’s contribution to New Zealand’s GDP increased from 35.8 percent to 37.9 percent, showing that relative increases in Auckland were considerably higher than the average of other regions. Auckland’s share of New Zealand’s population also increased, from 33.6 percent to 34.6 percent.
• The 2013–18 increase was primarily driven by professional, scientific, and technical services; financial and insurance services; and construction. The construction industry’s share of the Auckland economy rose over this period.
• In 2016, Auckland’s GDP increased 8.3 percent driven by rental, hiring, and real estate services; professional, scientific, and technical services; and transport, postal, and warehousing.
• In 2017, Auckland’s GDP increased 7.1 percent led by construction; professional, scientific, and technical services; and financial and insurance services. The construction industry increased by 21.3 percent in 2017, more than $1 billion above the 2016 figure. Value of building work put in place: December 2018 quarter reported Auckland’s building work reached a peak of 29 percent in the 2017 March year.
• In 2018, Auckland’s GDP increased 5.3 percent driven by professional, scientific, and technical services; manufacturing; and construction. Between 2015 and 2017 Auckland’s GDP increase was a percentage point or more above the national average. In contrast, Auckland’s GDP increase for 2018 was below the national average.

Waikato

• From 2013–18, Waikato’s economy increased 31.8 percent (national increase was 30.9 percent). Waikato’s share of national GDP increased 0.2 percentage points, to 8.4 percent.
• The 2013–18 increase was broad-based, led by rental, hiring, and real estate services; construction; and manufacturing. The contribution of rental, hiring, and real estate services and construction to Waikato’s economy rose over this period.
• In 2016, Waikato’s GDP increased 2.9 percent, led by increases in manufacturing; construction; and retail trade. Agriculture fell by 11.4 percent, after a 48.9 percent fall in 2015.
• In 2017, Waikato’s GDP increased 6.8 percent, driven by strengths in agriculture (mainly dairy cattle farming); rental, hiring, and real estate services; and construction. However, these rises were offset by a large fall in manufacturing.
• In 2018, Waikato’s GDP increased 7.5 percent, led by an increase in rental, hiring, and real estate services. Other notable increases were in fishing, forestry, and mining; and agriculture.

Bay of Plenty

• From 2013–18, Bay of Plenty’s economy increased 38.7 percent (national increase was 30.9 percent), and its share of national GDP rose 0.3 percentage points, to 5.6 percent.
• The 2013–18 increase was driven by construction; agriculture; and rental, hiring, and real estate services.
• In 2016, Bay of Plenty’s GDP increased 8.8 percent, the highest of all the regions. This was driven by increases in manufacturing; rental, hiring, and real estate services; and agriculture (primarily kiwifruit).
• In 2017, Bay of Plenty’s GDP increased 12.4 percent, the highest increase in GDP of all the regional economies for the second year in a row. This was driven by large increases in agriculture (dairy cattle farming and kiwifruit); construction; and rental, hiring, and real estate services.
• In 2018, Bay of Plenty’s GDP increased 6.2 percent, led by construction; manufacturing; and owner-occupied property operation.

Gisborne

• From 2013–18, Gisborne’s economy increased 27.5 percent (national increase was 30.9 percent), and its share of national GDP remained unchanged at 0.7 percent.
• The 2013–18 increase was driven by fishing, forestry, and mining; rental, hiring, and real estate services; and agriculture.
• In 2016, Gisborne’s GDP increased 5.7 percent, primarily due to fishing, forestry, and mining (supported by higher log prices).
• In 2017, Gisborne’s GDP increased 4.7 percent. Broad-based industry increases were led by rental, hiring, and real estate services; and agriculture. Fishing, forestry, and mining declined.
• In 2018, Gisborne’s GDP increased 6.6 percent, driven by fishing, forestry, and mining; and rental, hiring, and real estate services.

Hawke’s Bay

• From 2013–18, Hawke’s Bay’s economy increased 29.1 percent (slightly lower than the national increase of 30.9 percent). Hawke’s Bay’s share of national GDP decreased slightly to 2.8 percent.
• The 2013–18 increase was mainly driven by agriculture (horticulture and fruit growing) and manufacturing.
• In 2016, Hawke’s Bay’s GDP increased 5.0 percent, driven by rental, hiring, and real estate services; transport, postal, and warehousing; and financial and insurance services.
• In 2017, Hawke’s Bay’s GDP increased 7.0 percent, led by construction; retail trade; and rental, hiring, and real estate services.
• In 2018, Hawke’s Bay’s GDP increased 7.0 percent, driven by manufacturing; agriculture; and retail trade.

Taranaki

• From 2013–18, Taranaki’s economy declined 6.9 percent (national increase was 30.9 percent). Taranaki’s share of national GDP continued to fall, dropping 1.2 percentage points to 2.9 percent. Its economy in 2018 was nearly $1.2 billion smaller than the 2014 peak.
• The decline was driven by fishing, forestry, and mining, which is the largest industry in Taranaki. The fall was softened by increases in manufacturing and agriculture industries.
• In 2016, Taranaki’s GDP decreased 13.7 percent, driven by a decline in fishing, forestry, and mining (reflecting lower international commodity prices). Agriculture also contributed to the decrease.
• In 2017, Taranaki’s GDP increased 2.8 percent. This was mainly driven by a rise in agriculture (led by dairy farming) that more than offset the fall in manufacturing. The mining industry was relatively flat.
• In 2018, Taranaki’s GDP increased 0.9 percent. Fishing, forestry, and mining; and agriculture fell but were offset by rises in manufacturing and other industries. The mining industry’s output fell amid oil price increases. Granting permits for offshore oil and gas exploration ended in April 2018. However, this did not affect this year’s GDP, which was based on the March 2018 year.

Manawatu-Wanganui

• From 2013–18, Manawatu-Wanganui’s economy increased 23.7 percent (national increase was 30.9 percent). Manawatu-Wanganui’s share of national GDP decreased from 4.0 percent to 3.8 percent over the period.
• The 2013–18 increase was driven primarily by manufacturing; agriculture; and rental, hiring, and real estate services.
• In 2016, Manawatu-Wanganui’s GDP increased 3.3 percent, led by public administration, defence, and safety services; electricity, gas, water, and waste services; and rental, hiring, and real estate services.
• In 2017, Manawatu-Wanganui’s GDP increased 5.1 percent, mainly due to an increase in agriculture boosted by higher milk prices. This was partly offset by a 13.6 percent fall in primary manufacturing.
• In 2018, Manawatu-Wanganui’s GDP increased 5.8 percent, driven by increases in rental, hiring, and real estate services; agriculture; and retail trade.

Wellington

• From 2013–18, Wellington’s economy increased 23.3 percent (national increase was 30.9 percent). Wellington’s share of national GDP decreased 0.8 percentage points to 13.0 percent.
• The 2013–18 increase was mainly driven by professional, scientific, and technical services; financial and insurance services; and public administration, defence, and safety services. Most regions had a stronger increase in GDP than Wellington over the period, mainly because the agriculture industries were boosted by rising commodity prices. Wellington also had a fall in contribution from information media and telecommunications and other services. Despite these, Wellington topped GDP per capita, overtaking the Taranaki region from 2016.
• In 2016, Wellington’s GDP increased 3.8 percent, driven by financial and insurance services; primary manufacturing; and rental, hiring, and real estate services.
• In 2017, Wellington’s GDP increased 4.2 percent, led by professional, scientific, and technical services; public administration, defence, and safety; and rental, hiring, and real estate services. The latter industry includes residential property operation, which has been rising steadily since 2014.
• In 2018, Wellington’s GDP increased 4.7 percent, driven by public administration, defence, and safety; rental, hiring, and real estate services; and professional, scientific, and technical services. Information media and telecommunications and other services decreased over the period.

Tasman and Nelson

• From 2013–18, Tasman and Nelson’s economy increased 34.9 percent (national increase was 30.9 percent). Tasman and Nelson’s share of national GDP remained unchanged, at around 1.8 percent.
• The 2013–18 increase was broad-based, driven by manufacturing; rental, hiring, and real estate services; agriculture; and retail trade.
• In 2016, Tasman and Nelson’s GDP increased 5.4 percent, primarily due to an increase in manufacturing. This was partly offset by a fall in transport, postal, and warehousing; and health care and social assistance.
• In 2017, Tasman and Nelson’s GDP increased 7.7 percent, led by agriculture (mainly dairy cattle farming).
• In 2018, Tasman and Nelson’s GDP increased 7.3 percent. The increase was led by rental, hiring, and real estate services. This was partly offset by a fall in agriculture due to dairy cattle farming.

Marlborough

• From March 2013–18, Marlborough’s economy increased by 38.2 percent (well above the national increase of 30.9 percent). Marlborough’s share of New Zealand’s GDP increased 0.1 percentage points, to 1.1 percent.
• The 2013–18 increase was mainly driven by the agriculture and manufacturing industries (horticulture and beverages, respectively).
• In 2016, Marlborough’s GDP increased 4.2 percent with large falls in agriculture being offset by increases in manufacturing. The agriculture fall was driven by a reduced grape harvest and lower prices.
• In 2017, Marlborough’s GDP increased 6.6 percent. Favourable growing conditions led to a much larger harvest, and was further supported by higher prices, more than reversing the previous year’s fall. Marlborough’s overall agriculture increase was 37.1 percent. This large increase was partly offset by an 8.3 percent fall in the region’s largest industry, manufacturing.  
• In 2018 Marlborough’s economy increased 6.8 percent, driven by rental, hiring, and real estate services; construction; and manufacturing. The impact of lower volumes of grapes harvested and lower prices led to a fall in agriculture. The rebound in manufacturing coincided with a fall in the price of grapes.
• Marlborough GDP per capita overtook Auckland in 2018 due to lower population growth (1.1 percent and 2.5 percent, respectively) and higher GDP (6.8 percent and 5.3 percent, respectively).

Note: this graph has changed since it was first published.

West Coast

• From 2013–18, the West Coast’s economy increased 1.1 percent (national increase was 30.9 percent). The region’s share of national GDP decreased almost 0.2 percentage points to 0.6 percent. Over the period, the West Coast’s population fell 1.5 percent, while New Zealand’s population rose 9.4 percent.
• The 2013–18 increase was broad-based led by agriculture. This was offset by a large fall in fishing, forestry, and mining.
• In 2016, the West Coast’s GDP decreased 7.6 percent. The fall was broad-based led by forestry, fishing, mining, electricity, gas, water, and waste services; agriculture; wholesale trade; and rental, hiring, and real estate services. 
• In 2017, the West Coast’s GDP increased 9.8 percent, driven by a strong performance in agriculture (mainly dairy cattle farming).
• In 2018, the West Coast’s GDP fell 1.8 percent, primarily due to agriculture (dairy cattle farming). Agriculture is one of the largest industries on the West Coast, and changes in the industry have relatively large impacts on the region’s GDP.

Canterbury

• From 2013–18, Canterbury’s economy increased 27.9 percent (national increase was 30.9 percent). Canterbury’s share of national GDP decreased from 12.7 percent to 12.4 percent over the period.
• The 2013–18 increase was led by construction, reflecting the significance of the Christchurch rebuild over the period. Professional, scientific, and technical services; and manufacturing were the next-largest contributors.
• In 2016, Canterbury’s GDP increased 3.6 percent due to increases in primary manufacturing; health care and social assistance; and construction. This was partly offset by a fall in agriculture (mainly dairy cattle farming).
• In 2017, Canterbury’s GDP increased 2.4 percent, led by agriculture (mainly dairy cattle farming), which was partly offset by a fall in primary manufacturing. The slowing pace of the Christchurch rebuild was evident in the 5.2 percent fall in construction.
• In 2018, Canterbury’s GDP increased 4.6 percent, driven by agriculture (mainly dairy cattle farming) and manufacturing.

Otago

• From 2013–18, Otago’s economy increased 36.2 percent (national increase was 30.9 percent). Otago’s share of national GDP rose 0.1 percentage points to 4.4 percent.
• The 2013–18 increase was led by rises in construction; and rental, hiring, and real estate services. The contribution of construction and rental, hiring, real estate services to Otago’s economy rose over the period.
• In 2016, Otago’s GDP increased 6.0 percent, primarily due to large rises in construction; rental, hiring, and real estate services; professional, scientific, and technical services; and food and beverage services. The increase was largely offset by a fall in agriculture (mainly due to a fall in dairy cattle farming).
• In 2017, Otago’s GDP increased 6.9 percent. This was led by rises in agriculture; rental, hiring, and real estate services (due to high demand of student rentals in Dunedin and ongoing housing crisis in Queenstown); and construction.
• In 2018, Otago’s GDP increased 8.6 percent, the highest of all regional economies, outpacing the national increase of 5.5 percent. This was largely driven by rises in rental, hiring, and real estate services; construction; and agriculture.

Southland

• From 2013–18, Southland’s economy increased 20.5 percent (national increase was 30.9 percent).  Southland’s share of national GDP decreased from 2.2 percent to 2.0 percent over the period.
• The 2013–18 increase was primarily driven by agriculture and manufacturing.
• In 2016, Southland’s GDP decreased 4.0 percent, driven by falls in agriculture (primarily dairy cattle farming) and manufacturing.
• In 2017, Southland’s GDP increased 8.3 percent, driven by a strong increase in agriculture due to higher milk prices. This was partly offset by an 18.6 percent fall in manufacturing.
• In 2018, Southland’s GDP increased 7.1 percent, driven by increases in agriculture (primarily dairy cattle farming) and manufacturing.