Details of Dunedin’s sluggish economic pulse make for "depressing reading", city councillors say.
At yesterday’s economic development committee meeting, councillors received Infometrics' Quarterly Economic Monitor for the city, titled "pulse check of Dunedin’s economy".
Cr Kevin Gilbert said the information, part of Enterprise Dunedin’s activity and tracking report, made for "depressing reading".
In the year to December 2024, Dunedin’s GDP fell 0.8% and employment fell 0.5%, the monitor said.
New dwelling consents dropped by 17% and while the non-residential consent had been lifted by a $147 million consent for "hospital work", project timelines were still uncertain.
Dunedin’s tourism sector was recovering "modestly", but falling domestic guest nights in commercial accommodation (-11%) offset growth international guest nights (7.4%).
"Is there anything I should be pleased and happy about taking away?"
Economic development programme manager Fraser Liggett said high interest rates and inflation had created a lot of pressure.
The focus was on getting the city in a position to "grow our way out" of the challenging environment, he said.
"I don’t believe that we are alone but again, this is something that we’re all focused on."
Cr Lee Vandervis asked Mr Liggett how the council could be confident in out-growing challenges despite not meeting its 2013 Economic Development Strategy goals of 10,000 extra jobs and an average extra income of $10,000 by 2023.
It fell short by about 2000 jobs and an average extra income of about $4500.
Committee chairman Andrew Whiley redirected Cr Vandervis’ question, saying it was better suited for discussions on future economic strategy.
"I think we need to focus on going forward, but I know you’re used to looking back," Cr Whiley said.
Cr Vandervis continued.
"A recent survey showed that Dunedin people are the happiest in any city in the country and that’s all well and good."
However, Dunedin’s economic performance compared to other cities across the country had been "consistently" below average for more than a decade, he said.
"Business as usual is not going to work for us."
"Looking forward can be — and I think in many cases in this council, has — simply a way of being in denial about the fact that we have failed to develop a great deal of what is potentially available in Dunedin."
The council accepted the report.
