Canterbury Region and the Global Economy - Preparing for the Future

In successful, modern, regional economies new jobs and income growth are increasingly being linked with information, knowledge and innovation; successfully applying ideas, research, inventions and new technologies, not just to industry, but to the wider economy.

Over the last five years the New Zealand economy in general, and the Canterbury economy in particular, have performed well:

Canterbury’s unemployment rate averaged 4.1% over the year to June 2004, compared to a national rate of 4.3%.  The region’s labour force participation rate is the highest in New Zealand, suggesting that a significant majority of able and willing workers are actively employed.  This is reflected in the relatively high GDP per capita (by NZ standards) in the region.  It also indicates that any additional economic growth will have to stem largely from population growth or labour and capital productivity gains.

Population growth has been aided by net migration inflows from other parts of New Zealand.  Between 1996 and 2001, nearly 8,800 more people entered Canterbury on a permanent basis than those who left.

Labour productivity (real GDP per employee) in Canterbury grew at an average of 0.8% between 2000 and 2004 compared with 0.9% nationwide.

Canterbury accounted for 5.9% of total overseas investment in New Zealand between 1999 and 2003, with most of this being in the form of land sales.  This is lower than the region’s share of national GDP.

For the YE September 2004, over 1 million overseas tourists visited Canterbury, over 45% of the total number of overseas tourists visiting New Zealand.  Further, the tourism industry generated 12% of all employment in Christchurch.

Historically, the region’s economic performance was attributed significantly to its commodity based agricultural industries.  More recently there has been a much broader base to the region’s economic performance, a trend that is expected to continue.

Both in the region’s new economy, epitomised by the tourism industry and ICT industries such as electronics and software, and in the more traditional primary sector industries, knowledge and innovation are expected to become more and more critical over time.

Globally, leading regions recognise that a strong commitment to research and development is important in helping to ensure that traditional commodity based industries remain consistently viable in price and quality despite fluctuations in world commodity prices.