Economic Development and Transport Minister Simon Bridges is today releasing a Government-commissioned report assessing the economic implications of the 2016 Kaikoura earthquake.
The report details the impact on small businesses and tourism caused by disruptions to transport infrastructure and the economic impacts.
“The quake has had a significant effect on people’s lives and businesses which the Government is firmly focussing on supporting. As well as the Kaikōura economy, the report shows the national economy has also felt the impact,” says Bridges.
The impact on New Zealand’s Gross Domestic Product (GDP) over the first 18 months following the earthquake is estimated at $450-$500 million.
The estimated reduction is made up of $110-$130 million (25% of the total impact) in Canterbury and $340-$370 million (75% of the impact) across the rest of New Zealand.
“Increased freight transport costs and impacts on businesses from infrastructure damage and transportation disruptions are the two key contributing factors,” says Bridges.
“The Government has committed significant resources to getting firms in the most affected communities back on their feet and repairing or replacing infrastructure,” he says.
The response to date has included getting work underway to fully reinstate the State Highway 1 coastal route and upgrading the alternate State Highway route between Picton and Christchurch.
The response has also included a range of business support packages, and support for the tourism industry and the primary sector and a grant to help with the restoration of Kaikoura Harbour; and temporary accommodation and housing support for residents, including farmers.
“The Government is focussing on providing a coordinated and rapid response and ensuring it is targeting it to where it will be most efficient and best placed to return affected areas to pre-quake levels,” says Bridges.
The Ministry of Business, Innovation and Employment and the Ministry of Transport commissioned the report.
The two ministries will continue to work with the Earthquake Commission and the New Zealand Transport Agency to monitor critical information relating to flows of people, tourists, and freight.
The report is available here.
