The Selwyn economy is bucking the trend in other parts of Canterbury according to a recent Infometrics report.
“Selwyn is reaping the benefits of expanding industrial zones and logistical infrastructure within its district boundaries to the south of Christchurch,” says Infometrics Senior Economist, Benje Patterson.
The latest Infometrics Quarterly Economic Monitor reports that Selwyn’s GDP grew by 3.6% in the year to March 2016 – well ahead of Canterbury average of 0.8% and the New Zealand average of 2.3%. Selwyn’s GDP had an estimated value of $1.8 billion.
“Selwyn is bucking the trend that is occurring in other parts of Canterbury where a tapering off of residential rebuilding work and losses in the dairy sector are constraining growth,” says Patterson.
Retail trade is also booming in the district and is up by 9.3% for the year to March 2016 on the previous year. Canterbury retail business grew by 1.2%, and national trade increased by 2.8%.
Retail trade figures sourced from Marketview from electronic card spending show $66 million in Selwyn in the January-March 2016 period.
Unemployment continues to be low in the district at 2.1%, with little change from the previous year. The national unemployment rate for the year to March 2016 was 5.7% and for Canterbury 3.5%.
International migration in Selwyn also jumped by 76% with 367 new international migrants moving to the district in the year to March 2016, up from 203 arrivals for the year to March 2015.
Residential building consent numbers for the year were unchanged from the previous year. The value of non-residential construction approvals was increased by 13% with consents having an estimated value of $109 million.
The report indicates Selwyn’s dairy payout for the 2015/16 season is expected to be $275 million, $16.6 million lower than the previous season.
“At this level, most dairy farmers will be running below their breakeven point. Given these losses, dairy farmers will have to keep relying heavily on bank credit lines and will continue displaying cautious spending behaviour,” says Patterson.
