The biggest threat to short-term economic growth after the earthquakes in North Canterbury is significant disruption to road and rail linkages, says ANZ.
In an email update, the bank highlighted disruption to transport and freight links between the top of the South Island and Christchurch as a major problem.
“How quickly those links can be restored or alternatives found will have a key influence on activity levels and supply chains,” according to the ANZ email.
“Increased use of coastal shipping has been mooted, but it will take time to implement both from a logistics and capacity point of view.”
ANZ also highlights the damage at CentrePort in Wellington as a problem.
The bank also says that the earthquakes impact on the Kaikoura and North Canterbury economy will be massive as summer trade for retailing, hospitality and tourism is key for the region’s economy.
“In the year to September, international tourists spent an estimated $72m in the Kaikoura district directly. Domestic tourists spent an additional $48m,” says ANZ.
“The figures are $482m and $782m respectively when looking at international and domestic tourist spending for the North Canterbury, Marlborough, and Nelson-Tasman regions more broadly,” says the bank.
