The West Coast economy grew strongly in the last year, despite the ongoing impact of Covid-19 and flooding in Buller.
Flooding on the West Coast hasn't hurt the local economy as much as feared. Photo: Supplied / NZ Defence Force
Data from Infometrics shows the region's economy grew by more than 8 percent in the year to December 2021 - ahead of the national rate of 5.5 percent.
Development West Coast chief executive Heath Milne said based on the latest data, the region's GDP rose by $82m in the past year to $2.35m.
The strongest growth was in Buller at 12.3 percent, followed by Grey District at 9.1 percent and Westland at 3.5 percent.
Employment across the coast grew by more than 4 percent during the same period - the highest rate in the country, which resulted in 685 new jobs.
Westland had the strongest employment growth rate in the country at 9.7 percent - with its top growing industries manufacturing, professional services, and health.
This was despite the ongoing struggles for those in the Fox and Franz Josef townships.
"South Westland lost 392 jobs during the first year of Covid, which isn't counted in this year's data. Since then, the Jobs for Nature initiative has played a massive role in sustaining the workforce in the tourism dependent area," Milne said.
"A large part of the employment growth will be attributed to the Government money that's been injected into the economy, both by way of Covid support and ongoing PGF projects. This is a double-edged sword as we are now seeing the significant impact on inflation."
In contrast, there was only 1.2 percent employment growth in Buller and no growth in Greymouth.
House values have also grown strongly on the West Coast, up by almost 30 percent per annum in the last quarter of 2021.
The average West Coast house costs $327,500, compared to $1.03m nationally.
During 2021, sales volumes had increased at almost double the national rate, with 627 houses on the West Coast sold during the year, well above the 10-year average of 428.
New dwelling consents have nearly doubled in the past year, with residential consents increasing by 89.9 percent which was the highest growth rate in the country.
