The ANZ bank put the spotlight on Otago in a report released yesterday and called it one of New Zealand’s most recession-proof regions.
Unemployment remained low, more houses were getting built, there were more businesses, exports grew and the economy had diversified, the bank said.
Growth was particularly dramatic in Queenstown Lakes, followed by Central Otago.
Dairy and meat products were the top export earners for Otago and fruit had shifted from being a modest contributor to a major export pillar.
“The regions are leading our economic recovery and Otago is the envy of many,” ANZ New Zealand business and agri managing director Lorraine Mapu said.
“Its success shows what is possible when a region builds on its strengths and diversifies into high-value sectors such as tourism, horticulture and knowledge services.”
The encouraging picture for the South was reinforced by Infometrics.
Provisional estimates from the September quarter showed an economic turnaround had begun for most regions in New Zealand, the economic consultancy said.
Southland and Otago were leading the way, Infometrics principal economist Nick Brunsdon said.
Gross domestic product rose in Southland by 2.3% a year and Otago by 2.1%, compared with a 0.9% national increase, he said.
“All regions of the South Island are growing faster than the national average, boosted by better primary sector returns.”
ANZ said the total number of businesses across Otago had grown significantly between June 2018 and June this year.
The bank said the number of businesses in Queenstown Lakes went from 8947 to 12,584 — a 40.6% increase.
“This reflects the district’s rapid population expansion and strong entrepreneurial culture.”
Business growth for Central Otago was 26.7% and for Dunedin 20.3%.
Dunedin’s education, healthcare and professional services continued to anchor the economy, ANZ said.
It presented Dunedin firm Oritain as a case study, describing it as a global leader in verifying where products and services came from.
“It is a great example of the significant value the education sector brings to Otago and what is possible when smart ideas are backed by the right support,” Ms Mapu said.
She also highlighted Cromwell-based cherry grower and exporter 45 South.
The company had invested in innovative technology, capturing new opportunities in high-value food production, Ms Mapu said.
ANZ southern business and agri manager Cameron Reed said Otago’s low JobSeeker Support rate of 3.4% stood out.
“We’ve got other regions that are over double that,” he said.
“Overall, the numbers paint a really positive picture of Otago.
“Our economy is in a better position than the national average, particularly with the strong connection to primary industry growth.”
ANZ said its business lending in South Canterbury, Otago and Southland had grown.
Lending to small businesses there had increased in the past year by 5% and commercial lending was up 19%, the bank said.
Business South chief executive Mike Collins said it was important to maintain momentum.
“Tourism is on the bounce-back and the construction industry is starting to come through again,” he said.
“Even retail numbers are starting to pick up.”
Consumer confidence was returning, he said.
Southland District Mayor Rob Scott said the region’s growth was becoming a theme.
“I think it’s reflective of the hard-working people and businesses in our province who are continually making a positive contribution to NZ Inc.”
Business growth since 2018
Queenstown Lakes 40.6%
Central Otago 26.7%
Dunedin20.3%
— Source: ANZ
