Economist confident Waipā will weather the latest lockdown storm
New Zealand’s latest COVID-19 level four lockdown isn’t all doom and gloom for Waipā’s economy according to one leading economist.
Principal economist at Infometrics, Brad Olsen, presented an update to Waipā District Council today on how the national and local economy has fared after the 2020 lockdowns, and what can be expected after the most recent.
“Waipā entered the latest lockdown in a strong position. 2021 has seen a pretty good run for the local economy and although uncertainty continues to exist, we’re confident it will bounce back,” said Olsen.
Prior to the latest level four lockdown, Waipā’s spending had grown by 15 per cent compared to pre-pandemic 2019 levels. Waipā also saw continued growth in the number of residents in employment.
Olsen said Waipā gained momentum after the last lockdown as locals were focused on supporting local business and spending their money locally.
“If we want this momentum to continue we will need to see this local support again as we come out of lockdown,” said Olsen.
Primary (agriculture), construction and retail industries were the major contributors to Waipā’s strong economy.
Olsen added “Waipā has seen more construction jobs being filled, more houses being built and more people moving to the district. A booming construction industry filters down which has meant an increase in retail spending.”
Nationally the economy will continue to face challenges, including labour and housing shortages. Shipping freight costs are expected to remain high for the next 12-18 months which has already impacted both import and exports.
“There is also the risk of brain drain as the impact of COVID-19 lessen overseas making the labour market tighter.”
After the 2020 lockdown, spending activity in New Zealand took three months to bounce back, compared to China which took eight.
“Globally, New Zealand has been a leading light through COVID-19.”
Olsen will now review the economic assumptions used by council in developing its 2021-2031 Long Term Plan and present back in September.
