Recommended NZ | Guide to Money | Gimme: Competitions - Giveaways

Improving Outlook For GDP Growth In Manawatu Region

Contributor:
Fuseworks Media
Fuseworks Media

The rural sector is expected to lead economic growth in the Manawatu region during 2011, supported by strong growth in international prices for agricultural products and the recent weakening in the New Zealand dollar.

Elaine Reilly, Chief Executive of Vision Manawatu says the completion of several major construction projects and a decline in new housing consents removed the stimulus to economic growth in the region during the second half of 2010. As a result, GDP estimates prepared by Infometrics suggest there was only minimal GDP growth in the region in the second half of 2010.

The 1 October tax cuts did not provide the expected boost to economic growth in the December quarter. Some purchases were brought forward in the September quarter to avoid the additional GST applying from 1 October, reducing the level of activity in the December quarter. This hid the extent of the decline in economic activity in the September quarter and has hidden some indicators of a stabilising in economic growth in the December quarter.

The Manawatu region economic outlook produced by Vision Manawatu (the region's economic development agency) and Destination Manawatu (the region's collaborative marketing organisation) suggests the approval of further construction work at Ohakea airbase and that signs a recovery in the housing sector is closer will be welcomed by the building sector.

Chief Executive of Destination Manawatu, Lance Bickford says the success of the region in attracting visitors is reflected in the 1.9 million visitor nights recorded in the year to December 2010, a 14% increase from the previous year. Further growth is expected as the region focuses on new projects to attract visitors to the region.

The New Zealand Rugby Museum is co-locating to Te Manawa and the opening of the new facility at the end of April will provide a new engaging and diverse visitor experience in the region. The region is also actively gearing up for Rugby World Cup visitors later this year while new events such as Square Affair at Easter weekend and promotion of the Country Road experience offer a wider range of visitor attractions.

All articles and comments on Voxy.co.nz have been submitted by our community of users. Please notify us if you believe an item on this site breaches our community guidelines.