December economic update - Infometrics

Westland District's economy grew by 1.6%, while Grey and Buller districts saw declines of 1.6% and 3.4%, respectively. Nationally, economic activity fell by 0.5%.

Development West Coast (DWC) Chief Executive, Heath Milne, said the figures reflect the broader economic challenges being experienced across the country.

“Despite a drop in GDP, the West Coast outperformed the national trend in several areas,” Milne added.

Tourism expenditure grew by 8.4%, the highest in the country, significantly outpacing the national average growth rate of 3.7%.

“Visitor spending has helped offset challenges in other sectors, contributing to a 4.0% rise in consumer spending,” Milne said.

Economic activity in the mining sector softened during the year, largely due to the eight-month closure of the Tawhai Tunnel near Reefton, which significantly impacted output. Additionally, the sector faced challenges from weaker coal prices, driven by global market dynamics.

Despite these challenges, employment in the mining industry continued to grow, driven by major projects gearing up for production.

Milne noted that while the sector faced short-term setbacks, the long-term outlook remains positive.

“It’s estimated that there is close to $19 billion in export potential from just six mineral sector projects currently in the pipeline. Record-high gold prices and the government’s ambition to double mining exports point to a positive future for the industry.”

Milne emphasised the importance of resilient infrastructure to unlock this potential. “The Tawhai Tunnel closure highlights how important reliable infrastructure is for our economy. To fully capitalise on these opportunities, ensuring resilient transport links and upgrading local port infrastructure will be essential.”

Employment on the West Coast grew by 0.6% over the year, outperforming the national average, which saw no employment growth. The unemployment rate fell to 4.3% across the region, below the national rate of 4.7%. Within the West Coast, Westland recorded 2.9%, Grey at 4.1%, and Buller at 5.6%.

The proportion of youth not in employment, education or training (NEET) increased to 13.7% in the year to December 2024, compared to the national rate of 12.8%. Westland recorded 10.9%, Grey at 14.2%, and Buller at 15.3%.

“To reduce youth unemployment and meet workforce demands in high-demand sectors like mining, construction, engineering, and trades, it’s essential to retain Tai Poutini Polytechnic on the West Coast,” Milne stressed. “We need to ensure our young people can gain the skills they need locally.”

House value growth on the West Coast also bucked the national trend, with a 2.0% pa fall nationally and an 11% pa rise on the West Coast in the December 2024 quarter. The average West Coast house value of $390,600 remains well under half the average national value of $905,800.