Regional Gross Domestic Product: Year ended March 2007–10 Embargoed until 10:45am – 28 June 2013

Key facts Regional gross domestic product (GDP) is a geographic breakdown of national-level GDP, which is New Zealand's official measure of economic activity.

For the year ended March 2010:

Auckland contributed the most to New Zealand’s GDP (35.0 percent), followed by Wellington (14.2 percent), and Canterbury (12.2 percent).

The North Island contributed 77.7 percent, compared with 22.3 percent from the South Island. Taranaki had the highest GDP per person at $73,200, driven by oil and gas production. This was

followed by Wellington ($55,800), Auckland ($45,700), and Southland ($45,600).

Between March 2007 and March 2010:

Auckland’s contribution to national GDP fell 1.3 percentage points to 35.0 percent, reflecting a manufacturing decline in 2009.

The South Island’s contribution to national GDP increased by 0.6 percentage points, due to larger dairy farming contributions from West Coast and Southland.

Taranaki had the largest growth in GDP (46.9 percent), due to increased oil and gas production.

Dallas WelchActing Government Statistician

28 June 2013ISBN 978-0-478-40836-2 (online)

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Commentary Introduction to regional gross domestic product New Zealand’s economy 2007–10 Regional industry composition Agriculture-based regions with strong food product manufacturing Agriculture and food product manufacturing supported by other industries Regional highlights

o Northland o Auckland o Waikato o Bay of Plenty o Gisborne o Hawke's Bay o Taranaki o Manawatu-Wanganui o Wellington o Marlborough o Tasman and Nelson o West Coast o Canterbury o Otago o Southland

Introduction to regional gross domestic productRegional gross domestic product (GDP) measures the contribution and make-up of economic activity for the regions of New Zealand. Regional GDP is presented in current (nominal) prices, and measures the value of production in the prices prevailing at the time (inflation is not removed). The data covers the March 2007–10 years.

This is the first release of regional GDP data, and we welcome your feedback (see contacts). In 2006 We ran a feasibility study and published experimental statistics for 2000–03. See data quality section for more detail.

New Zealand’s economy 2007–10Overall, New Zealand’s economy expanded between 2000 and 2010, although the drivers behind the growth varied over the period. From 2000 to 2007, contribution to national GDP increased from the construction; rental, hiring, and real estate services; health care and social assistance; retail trade; and dairy product manufacturing industries.

From 2007-10, the contribution to GDP decreased for the manufacturing industries, including dairy product; metal product; and petroleum and coal product manufacturing. Decreased contributions to GDP also came from construction; retail trade; and rental, hiring and real estate services. Increased contributions to GDP came from the dairy farming; mining; finance and insurance; and health care industries.

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Commodity prices also fluctuated from 2007 to 2010. Milk prices peaked in 2008, dropped in 2009, and increased again in 2010. These fluctuations affected contributions from the dairy farming and dairy product manufacturing industries, making GDP volatile. GDP from mining-related industries was also volatile from 2007 to 2010. Oil and gas-related commodity prices peaked to the March 2008 year, while coal prices were high in 2008 and 2009 before dropping again in 2010.

Regional industry compositionNew Zealand’s regions can be grouped based on their industry compositions, urban and rural characteristics, and the relative importance of agricultural production to GDP. Exposure to agriculture and food product manufacturing, specifically dairy, has caused some volatility and growth differences between regions.

The diversity of the regions is also noticeable, with more diversified regions expanding into the supporting service industries, such as professional, scientific, and technical services. The urban regions provide services to the rest of the country, while rural regions largely produce goods.

Urban service industries support all regions

The Auckland and Wellington regions are predominantly urban. Both regions provide services to the rest of New Zealand, as opposed to supporting their internal industries only. Their economies are composed of less agricultural and related food product manufacturing. A large proportion of Auckland’s GDP comes from a varied manufacturing base, and a large proportion of Wellington’s GDP comes from public administration and safety. Both regions make a large contribution to the Professional, scientific, technical, administrative, and support services.

Auckland’s GDP declined in the March 2009 year as manufacturing retreated with the economic slowdown. Contributions from transport, postal, and warehousing; and wholesale trade also fell. Manufacturing picked up again in the March 2010 year. GDP from financial and insurance services; transport, postal, and warehousing; and retail trade also grew in 2010.

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Wellington’s economy also slowed in 2009, with contributions from manufacturing; information media and telecommunications; and transport, postal, and warehousing all declining. Wellington’s economy contributes a lower proportion to manufacturing, so it did not experience the manufacturing decline to the same extent as Auckland. Wellington’s economy also had a larger proportion of public administration and safety, a stable industry group over the 2007–10 period.

Agriculture-based regions with strong food product manufacturing

Growth from dairy, volatility from dairy prices

Waikato, Southland, and West Coast contributed about 25 percent, 12 percent, and 3 percent, respectively, to the country’s dairy farming GDP. These regions are reliant on dairy farming as it makes up a large proportion of their economy. National dairy farming GDP fluctuated, with peaks in 2008 and 2010 and a low in 2009. This reflected the movements in world milk prices.

GDP from dairy product manufacturing was also volatile in these regions, with 2008 and 2010 being low years and 2009 a peak. Compared with Southland and the West Coast, Waikato contributed a relatively higher proportion to dairy product manufacturing, which moderated large increases to dairy farming over 2007–10.

Rise of Sauvignon Blanc production

A high proportion of Marlborough’s GDP comes from beverage and tobacco product manufacturing. Marlborough’s economy is centred around horticulture and fruit-growing activities, with contributions increasing in line with Sauvignon Blanc production. Marlborough’s GDP rose in the March 2009 year, in line with large increases to the tons of grapes produced. The price of grapes dropped in 2010, causing a decline in manufacturing revenue and total GDP for the region.

Mixed agriculture more stable than dairy

Gisborne and Hawke’s Bay have close to 80 percent of their agriculture GDP coming from a combination of horticulture and fruit growing; and sheep, beef, cattle, and grain farming. The main commodities in Gisborne and Hawke's Bay were lamb and vegetables, which didn't show the same volatility as milk. Both regions missed the dairy boom and their GDP was less volatile as a result.

Agriculture and food product manufacturing supported by other industries

Diversifying by expanding into services

Many of the rural economies have a broad network of industries extra to agriculture and food product manufacturing, such as Professional, scientific, technical, administration, and support services.

Canterbury, Otago, and Bay of Plenty are well-diversified regions. Canterbury’s economy is based around manufacturing; professional, scientific, technical, administrative, and support services; agriculture; health care and social assistance; and construction. Otago is geared towards manufacturing; forestry, fishing, mining, electricity, gas, water, and waste services; construction; health care and social assistance; and education and training. Bay of Plenty’s

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economy is composed of manufacturing; professional, scientific, technical, administrative, and support services; forestry, fishing, mining, electricity, gas, water, and waste services; Health care and social assistance; and agriculture.

These regions experienced some volatility from agriculture; and transport, postal, and warehousing. However, the broad composition of these economies smoothed GDP from 2007–10. Canterbury experienced growth in agriculture, with stability across other industries. Otago experienced growth in mining with similar stability across other industries. GDP was stable for Bay of Plenty from 2007 to 2010.

The economy of the combined regions of Tasman and Nelson was based on manufacturing; professional, scientific, technical, administrative, and support services; rental hiring and real estate services, and construction. The region is diversified without a large agriculture industry.

Manawatu-Wanganui has also expanded into the support services. The region makes a large contribution to agriculture but also has a large composition of central government administration, defence, and public safety – showing the region has diversified into central government services.

Specialisation and lower diversity

Taranaki and Northland are relatively specialised regions. They have more than one significant industry, but they provide a smaller contribution to the service industries than the more diversified regions. A large proportion of Taranaki’s GDP comes from oil and gas production, with the mining industry making up around 35 percent of Taranaki’s GDP in 2010. The size of Taranaki's economy expanded a lot from 2007 to 2010 but volatility was experienced because of a dependence on the oil and gas industry.

Northland’s economy is largely based on petroleum refining, followed by health care and social assistance, and agriculture. Northland experienced growth and volatility in agriculture GDP from 2007 to 2010. Compared with regions that had large agriculture industries, Northland had lower growth because of the decline in petroleum and coal product manufacturing.

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Regional highlights

Mapping overview

The following maps show the changes in the size and composition of the regional economies. The regional commentaries that follow will refer you to additional maps that illustrate the characteristics of particular regions.

Although the agriculture industry has been the main driver of increased GDP between 2007 and 2010, regional contributions to national GDP level do not reflect that. Regional contributions to national GDP mostly reflect the population distribution, as seen below.

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The expansion of capital-intensive oil and gas extraction boosted Taranaki’s GDP per person beyond that of other regions. Wellington and Auckland, with a high prevalence of professional and technical services, also had relatively high GDP per person.

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The strength of the agriculture industry from 2007 to 2010 was evident in a region’s GDP growth over that period. Growth was centred in agriculture-based regions, except for Taranaki which had the highest growth of any region as a result of the expansion in oil and gas extraction.

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Agriculture has contributed to increases in GDP for most regions. Frequent dry weather conditions in the northern and eastern regions resulted in lower increases compared with other parts of the country.

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Over the long term, the contribution to GDP of the service industries has been increasing faster than others. The service industries are more significant in regions with larger cities.

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The 2007–10 period included difficult economic conditions. However, regions with more agriculture-focused economies also experienced larger increases in their supporting service industries.

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Northland

GDP $(million) Change in GDP %

Year ended March

Northland region National

Proportion of national %

Year ended March

Northland region National

2007 4,972 169,869 2.9 2007–08 4.5 8.32008 5,198 183,997 2.8 2008–09 4.2 0.82009 5,415 185,555 2.9 2009–10 -1.7 2.22010 5,323 189,718 2.8

2007–10 7.1 11.7

Northland's top 5 industries (2010) Value added $(million)

Proportion of Northland's GDP

(2010) % Manufacturing 1,026 19.3Agriculture 436 8.2Health care and social assistance 391 7.3Rental, hiring, and real estate services 367 6.9Owner-occupied property operation 343 6.4

Northland was more dependent on manufacturing than any other region (19.3 percent of the region’s 2010 GDP).

While manufacturing for other rural regions was dominated by food product manufacturing, petroleum manufacturing was dominant in Northland.

Agriculture increased the size of Northland's economy from 2007 to 2010, a similar picture to other rural regions.

Northland’s agriculture industry performed worse than other regions due to dry weather conditions. Its contribution to national agriculture GDP also fell because of increased dairy farm conversions in the South Island.

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For additional graphics, refer to the 'additional graphics' file in the Downloads box, particularly figure 7.

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Auckland

GDP $(million) Change in GDP %

Year ended March

Auckland region National

Proportion of National %

Year ended March

Auckland region National

2007 61,713 169,869 36.3 2007–08 6.8 8.32008 65,896 183,997 35.8 2008–09 -1.3 0.82009 65,016 185,555 35.0 2009–10 2.0 2.22010 66,347 189,718 35.0

2007–10 7.5 11.7

Auckland's top 5 industries (2010) Value added $(million)

Proportion of Auckland's GDP

(2010) %Manufacturing 8,292 12.5Professional, scientific, technical, administrative, and support services 7,670 11.6

Financial and insurance services 5,459 8.2Other services 4,982 7.5Wholesale trade 4,789 7.2

Auckland’s largest industry was manufacturing in 2010. Auckland moderated national manufacturing movements from 2007-10 because of a smaller composition of food product manufacturing (which decreased over the period).

The economic slowdown in 2009 impacted broadly on Auckland’s industries, especially manufacturing and distribution.

Financial and insurance services increased strongly in 2009 and 2010 as interest rate margins increased. Half of the country’s financial and insurance services were in Auckland, accounting for one-third of Auckland’s growth from 2007 to 2010.

Auckland's economy increased further in 2009 and 2010 as a result of an increased service sector - services playing a larger role in Auckland than in any other region.

Auckland accounted for 54.7 percent of new Zealand's wholesale trade GDP in 2010. This is Auckland’s largest share of any industry in 2010. Its lowest share is agriculture, at 2.4 percent.

Auckland’s GDP generally performed differently to other regions, due to a lower contribution to agriculture. Auckland and Wellington are the only regions composed of less than 1 percent of agriculture.

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For additional graphics, refer to the 'additional graphics' file in the Downloads box, particularly figures 1 and 7.

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Waikato

GDP $(million) Change in GDP %

Year ended March

Waikato region National

Proportion of National %

Year ended March

Waikato region National

2007 14,621 169,869 8.6 2007–08 6.6 8.32008 15,589 183,997 8.5 2008–09 4.7 0.82009 16,321 185,555 8.8 2009–10 -1.0 2.22010 16,150 189,718 8.5

2007–10 10.5 11.7

Waikato's top 5 industries (2010) Value added $(million)

Proportion of Waikato's GDP

(2010) % Agriculture 1,823 11.3Manufacturing 1,813 11.2Forestry, fishing, mining, electricity, gas, water, and waste services 1,505 9.3

Professional, scientific, technical, administrative, and support services 1,050 6.5

Health care and social assistance 1,044 6.5 Agriculture and food product manufacturing dominate Waikato’s economy, although the

region is more diversified than other agriculture-based regions. The dry weather conditions in 2008 and 2010 caused considerable volatility in the

region’s GDP, to a greater extent than other agriculture-based regions. Waikato accounted for 20 percent of the national agriculture industry in 2010, the highest

of any region, followed by Canterbury (18 percent) and Southland (10 percent).

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For additional graphics, refer to the 'additional graphics' file in the Downloads box, particularly figure 5.

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Bay of Plenty

GDP $(million) Change in GDP %

Year ended March

Bay of Plenty region

National

Proportion of National %

Year ended March

Bay of Plenty region National

2007 8,884 169,869 5.2 2007–08 7.7 8.32008 9,567 183,997 5.2 2008–09 -0.5 0.82009 9,523 185,555 5.1 2009–10 3.5 2.22010 9,859 189,718 5.2

2007–10 11.0 11.7

Bay of Plenty's top 5 industries (2010) Value added $(million)

Proportion of Bay of Plenty's GDP

(2010) % Manufacturing 1,024 10.4Professional, scientific, technical, administrative, and support services 939 9.5

Forestry, fishing, mining, electricity, gas, water, and waste services 843 8.6

Health care and social assistance 789 8.0Owner-occupied property operation 659 6.7

Bay of Plenty's economy expanded from 2007 to 2010 as contributions from agriculture, professional services, and the health care and social assistance industries increased.

Manufacturing accounted for the largest share of the region’s GDP in 2010 (10.4 percent). However, Bay of Plenty has a stronger mix of industry contributions than other regions, making it one of the most diversified economies in New Zealand.

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For additional graphics, refer to the 'additional graphics' file in the Downloads box, particularly figure 2.

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Gisborne

GDP $(million) Change in GDP %

Year ended March

Gisborne region National

Proportion of National %

Year ended March

Gisborne region National

2007 1,271 169,869 0.7 2007–08 3.9 8.32008 1,321 183,997 0.7 2008–09 4.5 0.82009 1,381 185,555 0.7 2009–10 2.3 2.22010 1,413 189,718 0.7

2007–10 11.2 11.7

Gisborne's top 5 industries (2010) Value added $(million)

Proportion of Gisborne's GDP

(2010) % Agriculture 139 9.8Forestry, fishing, mining, electricity, gas, water, and waste services 125 8.9

Manufacturing 123 8.7Health care and social assistance 118 8.3Construction 102 7.2

Gisborne’s economy is reliant on agriculture but is supplemented by a relatively large forestry industry. This made the region less vulnerable to fluctuating milk prices.

The Gisborne and West Coast regions have similar-size economies, with either one of the two being the country’s smallest economy from 2007 to 2010.

Forestry, fishing, mining, electricity, gas, water, and waste services; and Transport, postal and warehousing increased Gisborne's economy in 2010.

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For additional graphics, refer to the 'additional graphics' file in the Downloads box, particularly figure 5.

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Hawke's Bay

GDP $(million) Change in GDP %

Year ended March

Hawke's Bay region National

Proportion of National %

Year ended March

Hawke's Bay region National

2007 5,310 169,869 3.1 2007–08 -2.4 8.32008 5,182 183,997 2.8 2008–09 3.7 0.82009 5,375 185,555 2.9 2009–10 1.9 2.22010 5,478 189,718 2.9

2007–10 3.2 11.7

Hawke's Bay's top 5 industries (2010) Value added $(millions)

Proportion of Hawke's Bay's GDP

(2010) % Manufacturing 829 15.1Agriculture 486 8.9Health care and social assistance 437 8.0Professional, scientific, technical, administrative, and support services 379 6.9

Rental, hiring, and real estate services 360 6.6 Manufacturing made the largest contribution to Hawke’s Bay’s GDP in 2010. Hawke's Bay also had a higher composition of agriculture, with stability resulting from a

lower contribution to dairy farming. Health care and social assistance made the largest contribution to the region’s GDP

growth in 2010, and grew consistently from 2007–10.

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For additional graphics, refer to the 'additional graphics' file in the Downloads box, particularly figure 7.

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Taranaki

GDP $(million) Change in GDP %

Year ended March

Taranaki region National

Proportion of National %

Year ended March

Taranaki region National

2007 5,417 169,869 3.2 2007–08 47.4 8.32008 7,982 183,997 4.3 2008–09 4.7 0.82009 8,354 185,555 4.5 2009–10 -4.7 2.22010 7,959 189,718 4.2

2007–10 46.9 11.7

Taranaki's top 5 industries (2010) Value added $(million)

Proportion of Taranaki's GDP

(2010) % Forestry, fishing, mining, electricity, gas, water, and waste services 3,233 40.6

Manufacturing 798 10.0Agriculture 725 9.1Professional, scientific, technical, administrative, and support services 334 4.2

Construction 325 4.1 Mining dominates Taranaki’s economy, and is substantial to the forestry, fishing, mining,

electricity, gas, water, and waste services industry grouping. Large increases to oil and gas production from the Pohokura and Tui oil fields expanded

Taranaki's economy from 2007 to 2010. The construction, wholesaling, metal product manufacturing, and mining industries also

grew strongly from 2007 to 2010. Taranaki's reliance on mining makes it one of the least diversified regions. It does have a

strong agriculture industry to fall back on but mining has caused the region's volatility. The region contributed 8.0 percent to national agriculture GDP in 2010, making it the

fourth-largest agricultural region. The strength of mining and agriculture in Taranaki was reflected in the highest GDP per

person, which was $73,200 in 2010. This compared with $55,800 in Wellington, and a national average of $43,700.

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Manawatu-Wanganui

GDP $(million) Change in GDP %

Year ended March

Manawatu-Wanganui Region

National Proportion of National %

Year ended March

Manawatu-Wanganui Region

National

2007 7,123 169,869 4.2 2007–08 7.5 8.32008 7,660 183,997 4.2 2008–09 -1.8 0.82009 7,523 185,555 4.1 2009–10 6.0 2.22010 7,978 189,718 4.2

2007–10 12.0 11.7

Manawatu-Wanganui's top 5 industries (2010)

Value added $(million)

Proportion of Manawatu-

Wanganui's GDP (2010) %

Manufacturing 788 9.9Agriculture 713 8.9Public administration, defence, and safety 665 8.3Health care and social assistance 583 7.3Construction 538 6.7

Manufacturing was the largest industry in Manawatu-Wanganui in 2010, accounting for 9.9 percent of the region’s GDP. Agriculture was the second-largest at 8.9 percent.

The region had a high composition of public administration, defence, and safety (8.3 percent) and education and training (6.7 percent) which contributed to the increased size of Manawatu-Wanganui's economy from 2007 to 2010.

Like other rural regions, agriculture caused volatility for Manawatu-Wanganui. However, this was offset by steady increases to the public administration, defence, and safety industry (up 24.3 percent) compared with agriculture (up 39.3 percent).

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For additional graphics, refer to the 'additional graphics' file in the Downloads box, particularly figure 18.

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Wellington

GDP $(million) Change in GDP %

Year ended March

Wellington region National

Proportion of National %

Year ended March

Wellington region National

2007 23,685 169,869 13.9 2007–08 7.7 8.32008 25,518 183,997 13.9 2008–09 0.7 0.82009 25,700 185,555 13.9 2009–10 4.5 2.22010 26,858 189,718 14.2

2007–10 13.4 11.7

Wellington's top 5 industries (2010) Value added $(million)

Proportion of Wellington's GDP

(2010) % Professional, scientific, technical, administrative, and support services 3,241 12.1

Public administration, defence, and safety 2,952 11.0Other services 2,921 10.9Financial and insurance services 2,617 9.7Manufacturing 1,758 6.5

Wellington had a large composition of service industries. The professional, scientific, technical, administrative, and support services contributed 12.1 percent to the region’s GDP in 2010. Public administration, defence, and safety contributed 11.0 percent.

As the capital city, the region is the largest contributor to public administration, defence, and safety. It is also the second- or third-largest contributor to each of the other service industries.

Financial and insurance services accounted for 9.7 percent of the region’s GDP, with steady growth from 2007 to 2010. This industry contributed over one-quarter of the region’s growth and offset a decrease in the region’s manufacturing industry.

Wellington has the second-highest GDP per person of any region. It was equal with Taranaki before the expansion of production from the Pohokura and Tui oil and gas fields.

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For additional graphics, refer to the 'additional graphics' file in the Downloads box, particularly figures 3 and 18.

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Marlborough

GDP $(million) Change in GDP %

Year ended March

Marlborough Region National

Proportion of national %

Year ended March

Marlborough region National

2007 1,655 169,869 1.0 2007–08 13.2 8.32008 1,873 183,997 1.0 2008–09 1.9 0.82009 1,908 185,555 1.0 2009–10 -2.3 2.22010 1,864 189,718 1.0

2007–10 12.6 11.7

Marlborough's top 5 industries (2010) Value added $(millions)

Proportion of Marlborough's GDP

(2010) % Manufacturing 281 15.1Forestry, fishing, mining, electricity, gas, water, and waste services 192 10.3

Agriculture 188 10.1Rental, hiring, and real estate services 137 7.3Construction 129 6.9

Manufacturing was the largest industry in Marlborough in 2010, contributing to 15.1percent of the region’s GDP.

Marlborough had a large share of New Zealand's grape crop over 2007–10, providing inputs to the beverage product manufacturing industry.

Marlborough’s economy grew strongly from 2007 to 2009, in line with large increases to the tons of grapes produced. The price of grapes then dropped in 2010, causing a decline in manufacturing revenue and total GDP for the region.

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For additional graphics, refer to the 'additional graphics' file in the Downloads box, particularly figure 7.

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Tasman and Nelson

GDP $(million) Change in GDP %

Year ended March

Tasman and Nelson region

National Proportion of national %

Year ended March

Tasman and Nelson region

National

2007 2,967 169,869 1.7 2007–08 6.6 8.32008 3,164 183,997 1.7 2008–09 1.1 0.82009 3,198 185,555 1.7 2009–10 4.9 2.22010 3,356 189,718 1.8

2007–10 13.1 11.7

Tasman and Nelson's top 5 industries (2010)

Value added $(million)

Proportion of Tasman and Nelson's

GDP (2010) % Manufacturing 453 13.5Professional, scientific, technical, administrative, and support services 292 8.7

Health care and social assistance 264 7.9Rental, hiring, and real estate services 242 7.2Construction 237 7.1

Manufacturing was the largest industry in the combined regions of Tasman and Nelson (in particular food, wood, and paper product manufacturing), with 13.5 percent of the region’s GDP in 2010.

Professional, scientific, technical, administrative, and support services contributed 8.7 percent to the region’s GDP in 2010. Health care and social assistance contributed 7.9 percent. This industry mix illustrates the diversity of the Tasman/Nelson economy.

Agriculture contributed the most to nominal growth in GDP from 2009 to 2010, although agriculture growth was volatile over 2007–10.

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For additional graphics, refer to the 'additional graphics' file in the Downloads box, particularly figure 5.

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West Coast

GDP $(million) Change in GDP %

Year ended March

West Coast region

National Proportion of national %

Year ended March

West Coast region National

2007 1,127 169,869 0.7 2007–08 17.7 8.32008 1,327 183,997 0.7 2008–09 9.5 0.82009 1,453 185,555 0.8 2009–10 -4.0 2.22010 1,395 189,718 0.7

2007–10 23.8 11.7

West Coast's top 5 industries (2010) Value added $(million)

Proportion of West Coast's GDP

(2010) % Agriculture 199 14.3Forestry, fishing, mining, electricity, gas, water, and waste services 193 13.8

Manufacturing 147 10.5Construction 120 8.6Health care and social assistance 93 6.6

West Coast's economy is based on agriculture, with significant contributions from mining and manufacturing.

Like other rural regions, volatility in agriculture influenced the region’s GDP. The region’s small economy makes it vulnerable to other occasional shocks. For

example, coal price increases in 2009 resulted in the region’s GDP per person exceeding the national average in that year. Over 2007–10, only Taranaki, Wellington, and Auckland exceeded the national average.

West Coast has one of the least diverse economies in New Zealand. Agriculture was more volatile in the West Coast compared with other regions, but has

increased overall between 2007 and 2010. This lifted the region’s total GDP by 23.8 percent, compared with an 11.7 percent growth in national GDP.

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For additional graphics, refer to the 'additional graphics' file in the Downloads box, particularly figure 5.

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Canterbury

GDP $(million) Change in GDP %

Year ended March

Canterbury region National

Proportion of national %

Year ended March

Canterbury region National

2007 20,494 169,869 12.1 2007–08 7.6 8.32008 22,051 183,997 12.0 2008–09 1.7 0.82009 22,419 185,555 12.1 2009–10 3.4 2.22010 23,188 189,718 12.2

2007–10 13.1 11.7

Canterbury's top 5 industries (2010) Value added $(million)

Proportion of Canterbury's GDP

(2010) % Manufacturing 3,098 13.4Professional, scientific, technical, administrative, and support services 1,911 8.2

Agriculture 1,642 7.1Health care and social assistance 1,611 6.9Rental, hiring, and real estate services 1,499 6.5

Manufacturing made the largest contribution to Canterbury’s GDP (13.4 percent in 2010). Professional, scientific, technical, administrative, and support services was second at 8.2 percent.

Canterbury is fundamentally agriculture-based but has a range of significant industries. This has allowed Canterbury’s economy to increase smoothly in line with national GDP.

Canterbury has one of the most diversified economies in New Zealand. Canterbury contributed 18.0 percent to national agriculture GDP, second to Waikato (20.0

percent). Canterbury has the second- or third-largest contribution to every industry except for the forestry, fishing, mining, electricity, gas, water, and waste services industry.

In 2009 many of Canterbury’s industries contracted, but total GDP increased mainly because of manufacturing.

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Otago

GDP $(million) Change in GDP %

Year ended March

Otago region National

Proportion of national %

Year ended March Otago region National

2007 7,158 169,869 4.2 2007–08 7.0 8.32008 7,657 183,997 4.2 2008–09 2.7 0.82009 7,863 185,555 4.2 2009–10 5.2 2.22010 8,270 189,718 4.4

2007–10 15.5 11.7

Otago's top 5 industries (2010) Value added $(million)

Proportion of Otago's GDP

(2010) % Forestry, fishing, mining, electricity, gas, water, and waste services 726 8.8

Manufacturing 708 8.6Construction 632 7.6Health care and social assistance 611 7.4Education and training 580 7.0

The size of Otago's economy increased in each year from 2007 to 2010. Despite volatility in agriculture (experienced by all agricultural regions), most industries in Otago grew steadily over that period.

Agriculture and mining contributed the most to Otago’s GDP growth from 2007 to 2010. Otago has one of the most diversified economies in New Zealand. The forestry, fishing, mining, electricity, gas, water, and waste services industry

contributed the largest (8.8 percent) to Otago’s GDP in 2010. The largest industry in other regions usually contributes over 10 percent to the region’s GDP. This shows the diversity of the region’s economy.

Other significant industries in Otago are manufacturing (8.6 percent of the region’s 2010 GDP), construction (7.6 percent), and education and training (7.0 percent).

The industry share of education and training in Otago is the largest for any region (7.0 percent of the region’s GDP), followed by Manawatu-Wanganui (6.7 percent).

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For additional graphics, refer to the 'additional graphics' file in the Downloads box, particularly figure 19.

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Southland

GDP $(million) Change in GDP %Year ended March

Southland region

National GDP

Proportion %

Year ended March

Southland region National

2007 3,471 169,869 2.0 2007–08 15.6 8.32008 4,011 183,997 2.2 2008–09 2.4 0.82009 4,106 185,555 2.2 2009–10 4.2 2.22010 4,279 189,718 2.3

2007–10 23.3 11.7

Southland's top 5 industries (2010) Value added $(million)

Proportion of Southland's GDP

(2010) % Agriculture 951 22.2Manufacturing 597 14.0Forestry, fishing, mining, electricity, gas, water, and waste services 296 6.9

Construction 253 5.9Health care and social assistance 235 5.5

Southland's economy is centred around agriculture, accounting for 22.2 percent of the region’s GDP in 2010. This compared with West Coast with the second-largest agriculture share of 14.3 percent.

Related food product manufacturing was also important to Southland’s GDP, contributing 14.0 percent in 2010.

Other industries made much smaller contributions to the region’s GDP, causing Southland to have one of the least diversified economies in New Zealand.

Agriculture increased by 86.5 percent from 2007 to 2010, driving the expansion of Southland's economy over the period.

All agriculture-focused regions experienced volatility in GDP over 2007–10, due to variable prices and drought conditions. However, a large number of dairy conversions and favourable weather conditions expanded Southland's economy.

Overall, Southland's GDP grew 23.3 percent from 2007 to 2010. This was slightly below the West Coast’s growth and compared with national growth of 11.7 percent from 2007 to 2010.

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For additional graphics, refer to the 'additional graphics' file in the Downloads box, particularly figure 5.

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Definitions About regional gross domestic product

Regional gross domestic product (GDP) is a geographic break down of national GDP. Regional GDP provides an indication of the size and structure of regional economies and provides a benchmark for measuring changes to regional economies over time.

More definitions

Annual Enterprise Survey (AES): an annual survey that collects national-level economic information by industry, including measures of financial performance and financial position. The target population for AES is all economically significant businesses operating in New Zealand, but with some industries excluded. Around 90 percent of GDP production is covered. AES has been selected as the core data source for compiling regional GDP.

Australian and New Zealand Standard Industrial Classification 2006 (ANZSIC06): the official industrial classification used by Statistics NZ. The classification system aims to reflect the structure of Australian and New Zealand industries and enable comparability with other countries’ statistics. The regional GDP project uses the 2006 version of the ANZSIC classification. Regional GDP data series published in 2006 used the ANZSIC96 industrial classification system.

Bottom-up (direct measure): the internationally preferred approach for regional GDP compilation is to directly measure the local activity of enterprises, and build up regional accounts from this information. The enterprise-level approach is preferred as it directly measures value added. It is also useful analytically as it clearly links the activity of enterprises within a region to the overall economic performance of the region. The New Zealand regional GDP statistics are compiled using this approach where possible, which is for most industries. The main alternative to the bottom-up approach is the top-down (or indirect) approach.

Business Frame (BF): a database of all known individual private and public sector businesses and organisations engaged in the production of goods and services in New Zealand that meet economic significance criteria. Business Frame data contributes to other data sources that may be used in the estimation of regional GDP.

Consumption of fixed capital: decline in the value of fixed assets used in production, as a result of physical deterioration and normal obsolescence.

Current prices: Statistics NZ’s regional gross domestic product (GDP) estimates are presented in current prices. Current (or nominal) price GDP measures production in the prices prevailing at the time. This means inflation (price effect) is not removed.

Enterprise: a business or service entity operating in New Zealand, including a company, partnership, trust, estate, incorporated society, producer board, local or central government organisation, voluntary organisation, or self-employed individual. An enterprise makes financing and distributive decisions on behalf of its group of firms. It can operate at one or several locations.

Geographic unit (GEO): a separate operating unit engaged in one or predominantly one kind of economic activity, from a single physical location or base in New Zealand. It can be classified to industry and region but has none or limited financial data available.

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Gross domestic product (GDP): total market value of goods and services produced in a given area, minus the cost of goods and services used in the production process.

Gross domestic product (GDP) per person: the economic output of a geographic area divided by the population in that geographic area.

Industry: a group of establishments engaged in the same or similar kinds of activity. Statistics NZ uses ANZSIC06 for compiling and presenting industry statistics. The published level of industries has changed slightly from the regional GDP statistics released in 2006, because of confidentiality requirements as a result of the new ANZSIC06 industry classifications.

Kind of activity unit (KAU): a subdivision of an enterprise producing goods and services, with a single set of accounting records. This can be classified to industry, and is the usual basis of financial information used in compiling regional GDP.

Linked Employer–Employee Data (LEED): an integration project that brings together the Inland Revenue administrative data with Statistics NZ’s Business Frame data, to provide employment statistics by industry and region. While data compiled from LEED covers only one component of GDP – compensation of employees – it can be useful to test how AES modelling is performing and how it can be used as a data source for estimating industry GDP in regions where there are gaps in AES.

Local kind of activity (LKAU): a notional unit established for the purpose of compiling regional GDP. It can be classified to industry and region. Transactional information can be imputed or can be estimated from a ‘regionalisation’ of KAU data.

Net taxes on production and imports: taxes on production and imports less subsidies.

New Zealand System of National Accounts (NZSNA): a comprehensive accounting framework based on an international standard, the 1993 System of National Accounts. The structure and content of the NZSNA transforms the countless economic transactions that take place each day into a framework, to analyse and compare important economic variables over time. One major objective of the NZSNA is to derive GDP.

Output: value of goods and services produced during a time period, regardless of whether they are produced for sale or own use.

Production approach to GDP: one of the three approaches of measuring GDP. This approach derives the total value added of producers by deducting the value of goods and services used up in production from the value of goods and services produced. This is the approach used for deriving regional GDP statistics by Statistics NZ.

Residency: the residency approach to regional GDP is based on the physical and legal existence of a unit in a region. It allocates value added to the region where the production unit is resident. This is important where a unit creates value added in more than one region, but is based only in one region. One such example is a transport business that provides services outside of its resident region, but its capital and employees are based in the resident region. Where a unit creates considerable value added in more than one region the territory principle is applied in place of the residency principle, and allocates proportions of the unit’s value added to the regions where the activity takes place.

Subsidies: government grants to producers who regard the transfers as an addition to income from current production. These payments may be intended to influence levels of production, the

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prices at which outputs are sold, or the remuneration of the institutional units engaged in production.

Statistical unit: the entity for which statistics are stored, produced, and published. These are used to recognise units that make production or financial decisions and to collect this information from them. Statistics NZ statistical unit structure comprises three levels: enterprise / kind-of-activity / geographic units.

Taxes on production and imports: these are assessed on producers for the production, sale, purchase, and use of goods and services, and which add to the market prices of those goods and services. These include sales tax, local authority rates, import and excise duties, and fringe benefit tax. In the consolidated accounts of the nation, goods and services tax is included.

Regions: the regional breakdown is based on regional council administrative boundaries. Tasman and Nelson have been combined due to difficulties in assuring the correct differentiation of economic activity between the regions. The published regions consist of:

Northland Auckland Waikato Bay of Plenty Gisborne Hawke's Bay Taranaki Manawatu-Wanganui Wellington Nelson and Tasman Marlborough Canterbury West Coast Otago Southland

Territory: the territory concept allocates activity to the region where it takes place, reflecting the activity of labour and capital operating in a region regardless of where the ‘owning’ production unit is located. This is applied where a unit’s workers are employed in more than one region, or when a unit owns considerable capital in a region that is different to the unit’s resident region, such as a power company based in one region, who owns a hydroelectric power station in another region.

Top-down (indirect measure): this method allocates national-level GDP to regions using a variable with a regional correlation to GDP, for example employment numbers or wages paid. The method is named top-down because the variable is allocated to a region not to a local unit. While top-down can be easier to implement than the bottom-up method, the accuracy may be harder to assess. It implies additional assumptions about the homogeneity of regions, for example, that pay rates are the same in every region, or the amount of capital per worker is the same in every region.

Value added: income formed in the production process. Value added equals output minus intermediate consumption. Value added is the income available to compensate the production factors involved.

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Related links Past releases

National Accounts (Industry Benchmarks): Year ended March 2010 provides national-level industry benchmark totals to which regional GDP values sum to.Related information

Introducing regional gross domestic product introduces the concept of regional GDP statistics and outlines the scope of the release.

Regional GDP feasibility study contains background information on the regional GDP feasibility study, with details of the methodology and results from the study.

Regional Economic Activity Report is a compilation of the available measure of regional economies at the time of publication.

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Data quality Period-specific informationThis section contains data information that has changed since the last release.

Experimental 2000–03 time series Quality improvements Regional population statistics

General informationThis section contains information that does not change between releases.

Scope of regional gross domestic product Regional gross domestic product concepts Confidentiality

Period-specific information

Experimental 2000-03 time series

In 2006, Statistics NZ completed a feasibility study for producing regional gross domestic product (GDP) by industry. An experimental series was developed that produced estimates of current price annual regional GDP for 2000–03 (March years).

The 2007–10 regional GDP series uses the same concepts, sources, and methodologies as the 2006 feasibility study. However, the two series are not directly comparable because the national-level GDP statistics, which regional GDP must sum to, have changed as a result of:

new data and changes to the source data, including the Annual Enterprise Survey (AES) quality improvements conceptual changes, such as incorporating Financial Intermediation Services Indirectly

Measured (FISIM) the upgrade of the industry classification used in economic statistics, from ANZSIC96 to

ANZSIC06.

Therefore, a direct comparison between the 2000–03 time series and the 2007–10 time series is not available. We are investigating options to provide a full time series of annual regional GDP for 2000–10 in the future.

Quality improvements

This release was produced using the original regional GDP sources and methods. These were updated where necessary due to changes in data availability and the move to ANZSIC06.

Although the general methods used in the release are fundamentally sound, some areas have been identified where the quality of the methods will be reviewed. Potential quality improvements include:

expanding the application of the 'capital intensiveness' adjustment to industries such as information, media and telecommunications

reviewing the method for allocating GST to regions.

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These quality improvements generally involve improving the estimates for a specific industry or industries. They are not expected to cause significant revisions at the total region level.

Regional population statistics

The regional population estimates used in this release differ from previously published Statistics NZ regional population estimates. These regional population estimates are mean year ended estimates, while those previously published are simply estimates (with no averaging methods applied).

The regional population estimates used in this release are for the years ended June 2007–10 while regional GDP is for the years ended March 2007–10. Please note this limitation when using the GDP per person statistics (see the definitions section).

General information

Scope of regional gross domestic product

The regional GDP estimates are in current prices and are consistent with published GDP in National Accounts (Industry Benchmarks): Year ended March 2010. The regional GDP estimates are essentially the regional allocation of current price national GDP.

An official constant price regional GDP estimate is not available and would require developing a new methodology. The estimates also do not provide information on inter-region flows.

The regional GDP estimates can currently only be produced for years that have been balanced in a national accounting supply-use framework, where industry unit data is available for industries using the bottom-up methodology. National GDP estimates have been published up to 2012 in National Accounts (Income and Expenditure): Year ended March 2012. There is no industry breakdown (or unit survey data) available for the 2011 and 2012 estimates however, and the existing regional GDP methods cannot be used for those years. The 2011 and 2012 estimates are also known as 'provisional' estimates. Producing 'provisional estimates' of regional GDP may be feasible, although no development work has been undertaken on developing a provisional regional GDP methodology.

Regional gross domestic product concepts

Regional GDP is conceptually the same as national GDP, with the GDP of each region summing to the national GDP total. In producing regional GDP, many concepts decide how GDP is allocated to the specific regions. The residency concept clarifies whether GDP should be allocated to the producer’s location or where the economic activity actually takes place. The treatment of concepts such as residency, statistical units, and the valuation basis of regional GDP is described in Regional GDP Concepts, Sources and Methods. These remain unchanged from the 2000–03 experimental series and the 2006 feasibility study.

Confidentiality

ANZSIC06 data is published in categories specified in the New Zealand Standard Industry Output Categories (NZSIOC) classification. A table showing the different NZSIOC levels is available on New Zealand Standard Industry Output Categories classification tables.

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Regional GDP is published at a 16-industry level, plus 'GST on production, import duties and other taxes'. The annual national accounts are published at NZSIOC level 3, which has 55 industry categories. The regional GDP industries are compiled under NSCIOC level 3, but are aggregated and analysed based on NZSIOC level 2, which is a 30-industry grouping. For publication, the industries are grouped to 16 industries, mainly to preserve the confidentiality of individual businesses. The strict application of the confidentiality rules to regional GDP is being reviewed and it may be that a more detailed level of industry publication may be made available in future regional GDP releases. However, it is unlikely that any release would ever be at a more detailed level than NZSIOC level 2.

Liability

While all care and diligence has been used in processing, analysing, and extracting data and information in this publication, Statistics NZ gives no warranty it is error-free and will not be liable for any loss or damage suffered by the use directly, or indirectly, of the information in this publication.

Timing

Our information releases are delivered electronically by third parties. Delivery may be delayed by circumstances outside our control.

Crown copyright©

This work is licensed under the Creative Commons Attribution 3.0 New Zealand licence. You are free to copy, distribute, and adapt the work, as long as you attribute the work to Statistics NZ and abide by the other licence terms. Please note you may not use any departmental or governmental emblem, logo, or coat of arms in any way that infringes any provision of the Flags, Emblems, and Names Protection Act 1981. Use the wording 'Statistics New Zealand' in your attribution, not the Statistics NZ logo.

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Tables The following tables are available in Excel format from the ‘Downloads’ box. If you have problems viewing the files, see opening files and PDFs.

1. Gross domestic product by region, current prices 2. Gross domestic product by industry for each region, current prices 3. Estimated population by region, year ended June, 2007–10 4. Gross domestic product per person by region, year ended March, 2007–10 5. Region gross domestic product, per person GDP, share of national GDP, percentage

change in GDP 2007–10, current prices