Report reveals resilient economy
A new report published by the Hamilton City Council shows that Hamilton’s historically high-performing economy is expected to remain resilient.
A new report published by the Hamilton City Council shows that Hamilton’s historically high-performing economy is expected to remain resilient.
Hamilton City Council’s ‘Hamilton Growth Outlook Report’ uses variables such as house prices, number of consented dwellings, homes completed, and GDP to provide a look into Hamilton’s economy over the next three years.
Growth Funding and Analytics Manager Greg Carstens said the report forecasts Hamilton’s average annual GDP growth rate to be about 2% through to 2024 – below the 3.6% growth rate seen pre-pandemic.
“Two percent is okay or slightly below what you’d like for healthy GDP growth. But in today’s environment, when you’re flirting with a recession, you’d consider 2% strong,” Carstens said.
Both Hamilton and New Zealand are bound to the global economy, meaning that year two of the pandemic, Russia’s invasion of Ukraine, logistical and supply chain issues and more have taken a toll on Hamilton.
However, over the past five years, Hamilton has seen more economic growth than New Zealand as a whole, with population growth at 8%, a GDP increase of 15%, and a 12% increase in jobs, compared to 6%, 10% and 8% increases respectively for New Zealand.
A possible reason for this growth is the diversity of industry in Hamilton. There are six sectors that make up 9% to 16% of jobs in Hamilton. According to the report, this equates to “lots of eggs in different baskets.”
The report also affirms what the council had forecast for 2022 in its 2021 Hamilton Annual Economic Report, citing a strong pipeline of construction projects will keep the sector moving despite economic uncertainty. While the report indicated fewer consented dwellings, it says the number of completed dwellings is expected to increase and construction backlogs are cleared.
