News from WCC
Research released today conducted by Infometrics and commissioned by the Wellington City Council shows an increase in productivity, taking Wellington City to 29.2 per cent higher than the national level and paints a generally positive picture of the Capital City economy moving forward at pace.
Key findings of the Wellington City Annual Economic Profile include:
GDP in Wellington City for the year to March 2013 is up 2.6% to $17,930m from a year earlier, in line with New Zealand’s GDP which increased by 2.6% over the same period.
Higher value-adding, knowledge based service industries – which includes organisations like Xero – accounted for the largest proportion of GDP (55.2%) in Wellington City. This has increased from 54.8% in 2012. Nationally these industries accounted for 31.1% of the economy.
GDP per employee in Wellington city increased by 1.9% to $118,074 in the year to March 2013, compared with a 1.7 % increase nationally. This takes Wellington City productivity to 29.2% higher than the national level.
Population growth which is an indicator of Wellington city’s attractiveness as a place to work and live was 0.9% over 12 months, increasing the population to 204,000. New Zealand’s total population also grew by 0.9% over the same period.
Total employment in Wellington city averaged 151,853 in the year to March 2013, up 0.7% from a year earlier. Employment in New Zealand increased by 0.8% over the same period.
Professional, scientific and technical services made the largest contribution to employment growth in Wellington City between 2012 and 2013 with the industry adding 968 jobs. The next largest contributor was public administration and safety (689 jobs) followed by financial and insurance services (299 jobs).
Councillor Jo Coughlan, the Chair of Economic Growth and Arts Committee, says that the profile confirms that the Economic Strategy set by Council in 2011 is already producing encouraging results. “The strategy is focussed on creating a business environment where innovative, creative and knowledge-intensive firms can flourish. Attracting talent to Wellington through the Destination Wellington programme and protecting and enhancing the central city’s role as the economic engine room of the region leads to economic growth.”
The Annual Economic Profile is great news for Wellington says Mayor Celia Wade-Brown. “The profile shows that our Smart Capital vision is working and we’re continuing to attract talent, enable high quality jobs and diversify the economy. There’s more to be done in ensuring the health of the economy and Council’s Growth Agenda, in collaboration with the business, arts and education sectors will accelerate investment and success.”
The Wellington City Annual Economic Profile is the first report produced that provides annual economic information for Wellington City when compared with the previous year. Prior reports provided information at a Wellington regional level. The profile will be repeated annually from now on.
Media release from Wellington Employers’ Chamber of Commerce
An increase in productivity in Wellington, as identified by research released today, is excellent news, says Wellington Employers’ Chamber of Commerce Chief Executive Raewyn Bleakley.
“Though the numbers in the Infometrics/Wellington City Council research come from last year, they confirm what more recent surveys have indicated – that the city is on the way back. The Chamber’s recent business confidence survey, and a later one by the NZ Institute of Economic Research, showed that businesses are the most optimistic they’ve been for 20 years. When taken with this research, it all adds up to an economy which is really starting to move. We should now be looking forward with real confidence to the year ahead and beyond.
“With the national economy also predicted to grow in the region of 3 per cent this year, there is a general feeling of optimism in our business community, and that is showing up in these productivity gains. This is likely to be the result of many factors, including the council’s long-term economic strategy. Our creative and knowledge-based industries are leading the way for us, and we must make sure we attract more of them.
“We must not take our foot off the pedal. We must build on the gains we have made, keep attracting business and businesses, and ensure our arts and events programme continues to be the best in the country. These are the things that will contribute to a brighter economic outlook which is great news for our city.”