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NEW ZEALAND Economic Trends in Regions

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NEW ZEALAND Economic Trends in Regions q http://www.oecd.org/regional Regions and Cities at a Glance 2018 – NEW ZEALAND Economic trends in regions Regional gap in GDP per capita, 2000-16 Index of regional disparity in GDP per capita, 2016 Top 20 % richest over bottom 20% poorest regions 2016 2000 GDP per capita in USD PPP Ratio 4 80 000 Small regions Large regions (TL3) (TL2) 70 000 Highest region 60 000 Taranaki 3 50 000 42 849 USDNew 40 000 New ZealandZealand 30 000 2 33 480 USD 20 000 10 000 Low est region Northland 1 0 24 503 USD 2000 2005 2010 2016 Country (number of regions considered) Regional disparities in terms of GDP per capita have slightly decreased in New Zealand in recent years, after a period of growth between 2007 and 2014, during which Taranaki – the region with highest GDP per capita – benefitted from growth in forestry, fishing, and mining activities. New Zealand has the lowest regional disparities among 30 OECD countries with comparable data, when the richest and poorest regions representing at least 20% of the population are taken into account. With a productivity growth of +1.5% per year over the period 2010-16, Tasman-Nelson-Marlborough had the highest productivity growth and converged towards the productivity level of Taranaki, the national frontier in terms of labour productivity. Youth unemployment is lower in New Zealand than the OECD average, although regional disparities are large. Northland has the highest youth unemployment rate (23.1% in 2016), which was almost three times as high as in Canterbury. Productivity trends, most and least dynamic regions, 2010-16 Youth unemployment rate, 15-24 years old, 2007-16 GDP per worker in USD PPP rate (% ) 30 Highest rate 120 000 Taranaki: highest 110 000 productiv ity in 2016 and Northland 25 23.2% 100 000 low est productiv ity 20 90 000 grow th (-0.3% av erage OECD 80 000 annual grow th ov er 15 New Zealand 2000-16) 13.2% 70 000 New Zealand 10 60 000 Tasman-Nelson-Marl.: Lowest rate Taranaki: low est 5 50 000 highest productiv ity Canterbury growproductiv th (+1.5% ity grow annually th (+- ) 7.9% 40 000 0.3% annually ) 0 2007 2010 2013 2016 2000 2005 2010 2016 Source: OECD Regional Database. Notes: (1) Figure on regional gap in GDP per capita: OECD regions refer to the administrative tier of subnational government (large regions, Territorial Level 2); New Zealand is composed of 14 regions. (2) Figure on index of regional disparity: top (bottom) 20% regions are defined as those with the highest (lowest) GDP per capita until the equivalent of 20% of national population is reached, this indicator provides a harmonised measure to rank OECD countries, using data for small regions (Territorial Level 3) when available. (3) Productivity is measured as GDP per employee at place of work in constant prices, constant Purchasing Power Parities (reference year 2010). Updated the 5th of March 2019 Differences in well-being across regions Top region Bottom region Wellington Regional councils Canterbury Hawke's Taranaki Otago Manawatu- Bay Wanganui Auckland Taranaki top top 20% Wellington Wellington Canterbury (1 to (1 to 402) Auckland Northland Manawatu- Auckland Wanganui Northland middle middle 60% Wellington Gisborne Northland Ranking Ranking of OECD regions Northland Northland Southland Gisborne bottom bottom 20% Health Jobs Safety Income Community Access to Life Civic Education Housing Environment services Satisfaction Engagement Relative ranking of the regions with the best and worst outcomes in the 11 well-being dimensions, with respect to all 402 OECD regions. The eleven dimensions are ordered by decreasing regional disparities in the country. Each well-being dimension is measured by the indicators in the table below. New Zealand is the OECD country with the highest regionals scores in environment, with all its fourteen regions among the top 20% of OECD regions. In general, regions in New Zealand perform relatively well in all well-being dimensions, although large disparities are observed in some of them (health, jobs, and safety). Regional disparities in health outcomes in New Zealand are the second largest among OECD countries, with Auckland ranking in the top 20% of OECD regions and Gisborne in the bottom 20%. The low performing regions in New Zealand fare better than the OECD median region in six out of the 13 well-being indicators but fall below the median in life expectancy, mortality rate, unemployment rate, homicide rate, disposable income per capita, broadband access and share of labour force with at least a secondary degree. Country OECD median New Zealander regions Average region Top 20% Bottom 20% Health Life Expectancy at birth (years), 2016 81.4 80.4 82.3 80.3 Age adjusted mortality rate (per 1 000 people), 2016 10.1 8.1 6.4 8.6 Jobs Employment rate 15 to 64 years old (%), 2017 72.0 67.7 77.3 68.8 Unemployment rate 15 to 64 years old (%), 2017 5.3 5.5 4.0 6.9 Safety Homicide Rate (per 100 000 people), 2016 0.9 1.3 0.1 1.4 Income Disposable income per capita (in USD PPP), 2016 17 564 17 695 21 161 15 078 Community Perceived social netw ork support (%), 2013 94.8 91.4 96.6 93.3 Access to services Households w ith broadband access (%), 2017 75.0 78.0 80.0 66.4 Life Satisfaction Life satisfaction (scale from 0 to 10), 2013 7.3 6.8 7.4 7.1 Civic engagement Voters in last national election (%), 2017 or lastest year 79.0 70.9 83.4 75.5 Education Labour force w ith at least upper secondary education (%), 2017 63.7 81.7 69.6 52.1 Housing Rooms per person, 2016 2.2 1.8 2.3 2.0 Environment Level of air pollution in PM 2.5 (µg/m³), 2015 5.0 12.4 2.7 6.5 Source: OECD Regional Database. Visualisation: https://www.oecdregionalwellbeing.org. Notes: (1) OECD regions refer to the first administrative tier of subnational government (large regions, Territorial Level 2); New Zealand is composed of 14 regions. (2) Household income per capita data are based on USD constant PPP, constant prices (year 2010). Updated the 5th of March 2019 Subnational government finance Subnational government expenditure by function As a share of total subnational government expenditure, 2016 New Zealand 00 OECD average Other 45% 11 15% Other Economic affairs 29% 22 14% Economic affairs General public services 26% 33 14% General public services Education 0% 44 25% Education Social protection 0% 55 18% Health Health 0% 66 14% Social protection Subnational expenditure per capita: USD 1 628 77 USD 6 817 Subnational government expenditure amounts to USD 1 628 per capita in New Zealand compared to an OECD average of USD 6 817. In New Zealand, this is equivalent to 11.1% of total public expenditure and to 4.4% of GDP. In comparison, across the OECD, subnational government expenditure accounts for 40.4% of total public expenditure and for 16.2% of GDP. Economic affairs and the function ‘Other’ (housing and community amenities, recreation, culture and religion; environment; public order and safety) are the two largest spending items for subnational governments in New Zealand. Together, they represent 74% of subnational expenditure compared to 29% in the OECD area. In New Zealand, subnational governments carried out 33.1% of total public investment compared to an OECD average of 56.9%. Role of subnational governments in public investment Subnational government public investment per capita, 2016 USD per capita New Zealand OECD average 1 800 1 600 1 400 1 200 Total public investment Total public investment 1 000 USD 1 543 per capita USD 1 278 per capita 3.0% of GDP 800 4.1% of GDP 600 Subnational government Subnational government 400 investment investment USD 727 per capita 200 USD 511 per capita 56.9% of public invest. 0 33.1% of public invest. Source: OECD Subnational Government Structure and Finance Database. OECD Regions and Cities at a Glance 2018 The 2018 edition of OECD Regions and Cities at a Glance shows how regions and cities contribute to national growth and the well-being of societies. It updates its regular set of region-by-region indicators, examining a wide range of policies and trends and identifying those regions that are outperforming or lagging behind in their country. Consult this publication on line: https://oe.cd/pub/2n9 Updated the 5th of March 2019 .
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