Tue Sep 24 03:42:21 UTC 2024: ## Gisborne Leads the Way in Economic Growth as Rebuild Efforts Drive Recovery

**Gisborne has emerged as the top performer in economic growth in the June quarter, driven by a surge in construction activity following last year’s Cyclone Gabrielle.** The region saw a 40.8% annual increase in building consents, placing it ahead of major cities like Auckland and Wellington.

ASB’s Regional Economic Scoreboard, which tracks regional growth in employment, building consents, and retail sales, highlights Gisborne’s impressive rebound. The region also experienced a 25.8% increase in house sales, demonstrating a strong recovery in the housing market.

**While other regions grapple with economic challenges, Gisborne’s resilience shines through.** ASB Chief Economist Nick Tuffley attributes the region’s success to the rebuild effort following the cyclone. “We saw a similar pattern in Hawke’s Bay last year, with recovery in housing, building, and spending,” he explained. “Gisborne is simply following a slightly different timeline.”

In contrast, major urban centers like Auckland and Wellington are facing setbacks. Auckland slipped to ninth place due to high mortgage burdens and a sluggish housing market. Wellington’s ranking fell to 14th due to the impact of public sector cutbacks, leading to a sharp decline in consumer confidence.

**Despite these challenges, ASB economists remain optimistic about a brighter outlook for 2025.** They anticipate a decline in unemployment and a gradual pick-up in construction activity, driven by easing inflation pressure. The housing market is also expected to experience further growth.

**Overall, the ASB report paints a mixed picture of the New Zealand economy.** While some regions like Gisborne demonstrate strong recovery, others face significant headwinds. The impact of global economic challenges, including weakness in China, is expected to continue to influence growth prospects in the near future.

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