Mid Canterbury Economic Update February 2011
Background
Recent economic data confirms that the Mid Canterbury economy outperformed much of New Zealand during the recent economic downturn. The district's economy has been showing positive growth for some time, albeit at lower levels than during the mid-2000 peak.
Economy
Economic growth data confirms the Ashburton District (Mid Canterbury) has outperformed both the national and Canterbury economies over 10 years. This continued in the year to March 2010 and through to the September quarter. Over the past 5 years Mid Canterbury's economy has been the 11th fastest growing in New Zealand (out of 72 TLA's) and the 2nd fastest in Canterbury, behind Hurunui. GDP to March 2010 was calculated at $988m in 1996 dollars.
| Ashburton GDP | |||
| Mar-10 | Sep-10 | 2001-10 | |
| % change | 2010 | Sep-09 | |
| Ashburton | 2.30% | 2.90% | 2.80% |
| Canterbury | -1.30% | 0.80% | 2.60% |
| New Zealand | -0.40% | 1.50% | 2.30% |
Key Sectors
Grow Mid Canterbury identified the district's key sectors, these make up almost 50% of the district's GDP. Order of rank (% of contribution to Mid Canterbury GDP, all as at 2010):
- Meat & Fibre — 16.8% (17.5%, 2000). Output declined 2.8% in 2010, national sector declined 1.5%. Sector employment: 1,449, up from 1,271 in 2009.
- Arable & Crop Sector — 9.3% (8.9%, 2000). Grew 16.8% in 2010, national sector decreased 1.9%. Sector employment: 1,449, up from 1,271 in 2009.
- Dairy Sector — 8.5% (3.9% 2000). Grew 1.2% in 2010, national increased 1.8%. Sector employed 1,402 persons, down from 1,436 in 2009.
- Engineering & Agricultural Servicing — 8% (7%, 2000). Output decreased 2.8% in 2010, national sector decrease 8.7%. Sector employment 1,493, down from 1,550 in 2009.
- Tourism — 3.6% (3.8%, 2000). Output declined 1.4% in 2010, national sector decreased 1.9%. Sector employment 871 in 2010, down from 880 in 2009.
- Intellectual Property Industries — 3.5% (2.7%, 2000). Output grew 9.3% in 2010, national sector increase 6.6%. Sector employment 932 persons, down from 929 in 2009.
Employment
Total employment in Mid Canterbury remained static for year to March 2010 at 16,536 versus 16,539 in 2009. Canterbury and New Zealand total employment declined 2.5% in both cases.
Mid Canterbury had the 17th highest rate of employment growth in New Zealand in 2010 and the 2nd fastest rate of growth in Canterbury. The district had the 2nd lowest rate of registered working age unemployment beneficiaries in Canterbury, behind Selwyn.
Dairy Farming was the single largest employer in the district in 2010. Services to Agriculture was the greatest contributor to increased employment during the year
| Top 10 employing industries | Ashburton | NZ | ||
| Rank | Industry | Jobs | % of total | % of total |
| 1 | Dairy Cattle Farming | 1,390 | 8.4% | 1.7% |
| 2 | Meat Processing | 1,368 | 8.3% | 1.0% |
| 3 | Services to Agriculture nec | 634 | 3.8% | 1.2% |
| 4 | Supermarkets | 385 | 2.3% | 2.2% |
| 5 | Hospitals (except Psychiatric Hospitals) | 377 | 2.3% | 2.9% |
| 6 | Farm Produce & Supplies Wholesaling nec. | 350 | 2.1% | 0.3% |
| 7 | Grain Growing | 345 | 2.1% | 0.1% |
| 8 | Primary Education | 309 | 1.9% | 2.2% |
| 9 | Sheep Farming | 300 | 1.8% | 0.6% |
| 10 | House Construction | 297 | 1.8% | 1.3% |
| Top 10 job creating industries in Mid Canterbury | Jobs | New Jobs | ||
| Rank | Industry | 2009 | 2010 | |
| 1 | Services to Agriculture nec. | 530 | 634 | 104 |
| 2 | Fruit & Vegetable Processing | 140 | 215 | 75 |
| 3 | Preschool Education | 107 | 150 | 43 |
| 4 | Crop & Plant Growing nec | 208 | 251 | 43 |
| 5 | Road & Bridge Construction | 118 | 153 | 35 |
| 6 | Deer Farming | 89 | 119 | 30 |
| 7 | Fish & Chips, Hamburger, Ethnic Food Takeaways | 44 | 72 | 28 |
| 8 | Grain Growing | 320 | 345 | 25 |
| 9 | Business Management Services | 101 | 121 | 20 |
| 10 | Department Stores | 108 | 125 | 18 |
Economic data provided by Infometrics. Unemployment data from Ministry of Social Development.
14 January 2011
Rob Brawley