Monday 29 March 2010

Clutha economy holds its own during national downturn

The Clutha District more than held its own during a difficult year for the national economy, according to a recently released BERL report.

The Otago Regional and Sub-Regional Economic Profile report was prepared by Business and Economic Research Limited (BERL) for Otago Forward, the organisation dedicated to advancing the economic development of the Otago Region.

The report describes the performance of the Otago region economy in 2009, as well as over the longer term, and also provides an overview of the five local economies that make up the region.

Despite a major global economic downturn in 2009, the Clutha District performed well.

Local GDP grew slightly (up 0.1%) compared with a 1.1% decline nationally. Employment was up 0.7% in 2009, including an 8.9% increase in the number of full time equivalents employed in the construction industry.

Over the 10 year period from 1999 to 2009, Clutha’s GDP grew at an average of 1.8% per year, employment at 1.1% per year, while the district added a total of 500 businesses over the decade.

The report points out that the major economic difficulty the Clutha District faces is a falling population, which could be discouraging new businesses and services. The district’s population has fallen an estimated 0.2% over the last decade, compared to 1.2% growth nationally.

Clutha District Development Board Chairman Jeff Seymour said the report provided useful information for the board, Council, local businesses and investors.

Mr Seymour said the report illustrated that Clutha’s economy remained in good stead thanks mainly to its strong primary sector.

The Board and Council would continue to work hard to attract new residents, businesses and investors to the district, he said.

The BERL report will provide a baseline to measure future economic trends for both the Clutha District and the wider Otago region.

Click here to download the report from the Plans and Publications page.

ENDS