Economic Monitor Report July 2011

This report provides an analysis and assessment of the current economic situation within Napier City, trends over the past year and the economic outlook for the year ahead. The base information for the analysis is sourced from a range of economic agencies including Statistics New Zealand, Infometrics economic consultancy in Wellington, the New Zealand Institute of Economic Research also based in Wellington, trading bank reports and local organisations within the district. As far as the available information allows, the actual monitoring period covered in the main by the formal economic indicator data presented in the report is the year ending March 2011. Appendix 1 contains economic indicator results for the City, for the last five March years.

Trend Summary

• The economic gains that have occurred for Napier over the past year include a small increase in the resident population; increased number and value of new commercial and industrial buildings consented and an increase in the number of new farm buildings consented; slight rise in retail sales and a significantly increased number of new motor vehicle registrations.
• The National Bank recorded just 0.4% annual economic growth for the total Hawkes Bay region for the year ending March 2011, compared to 1.2% at the national level. The Hawkes Bay figure also compares with 0.7% growth for the year ended March 2010. Bank growth data is not provided at the district level.
• Total employment in Napier stood at 27,772 in March 2011, total unemployment at an estimated 2,155 and the rate of unemployment at 7.2%. Since 2008, the labour-market situation in the City has tightened overall.
• Visitor activity in the City has stabilised overall during the past three years, although it is still at a significantly lower level compared to the results for the 2005-2008 period. Total visitor numbers for Napier increased slightly during the latest March year.
• Significant economic developments in Napier either planned or underway include the construction of new retirement villas at Atawhai retirement centre in Taradale, new events centre at the Silky Oaks chocolate complex in Taradale; the recent success of the Goodtime Foods Company in Onekawa in gaining national contracts to supply pies to supermarkets and the new ‘Z Energy’ petrol stations; EIT Hawkes Bay’s participation in a new joint venture educational liaison office in India; HB Airport developments (completion of runway extension, road planning as part of a proposed future on-site business park, and growth of the private jet and domestic charter business), the ‘Farmers’ major retail store redevelopment in central Napier, the $14.5 million redevelopment of the Ravensdown fertiliser manufacturing plant at Awatoto and new industrial developments in the Pandora area.
• Total Port of Napier international export trade volumes increased 13% over the year ending March 2011, whilst import volumes rose 35%.

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