Horowhenua’s economy has bounced back in this quarter since COVID-19 affected the community in the June 2020 quarter. With GDP provisional estimates showing a 1.5% growth in this quarter, Horowhenua has bounced back compared to national GDP decrease of an estimated 3%.
Source: Infometrics Horowhenua District Quarterly Economic Monitor March 2021
The stability and growth within our agricultural and food processing sectors has kept Horowhenua in a strong position, compared to other parts of the country who have been affected by the weaker tourism industry. It’s forecasted that the dairy industry will provide an extra $10m to our local economy within the June 2021 quarter and the current season will show an expected $140m payout to our farmers.
The annual change of Horowhenua’s working population receiving Job Seeker Support has increased by 17% to March 2021 , whereas the national average shows an increase of 39.8% as a result of COVID-19. Whilst Horowhenua is in a better position than most other areas in New Zealand, this shows that we are not out of the woods yet, as this still results in nearly 1,900 recipients on Job Seeker, compared to a long-term average of 1,550 people over previous years.
There are still challenges within Horowhenua’s housing market, with the latest average house price in Horowhenua increasing again this quarter to $561,000, which is an increase of 24% compared to the same quarter last year. This increase is leading to an increased number of residential consents to a total of 89 this quarter, doubling the 10-year average of 43. Whilst the residential market is red hot, commercial consents stay sitting at the long-term average.
The growth in the Horowhenua economy is enabling more business owners to invest, for example commercial vehicle registrations have increased by 2.4% this quarter. Overall, the economic future of Horowhenua is looking much brighter compared to the previous March 2020 quarter.
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