A prudent business culture and strong agricultural base mean Otago's economy is stacking up well compared with the rest of New Zealand.
This culture meant economic highs were not as high and lows were not as low, Department of Labour Otago regional labour market knowledge manager Paul Crack said.
"Dunedin companies have a long history of being prudent and able to cope with some pretty adverse effects."
Companies were collaborating on initiatives to help keep jobs and were developing innovative ways of working together, he said.
The global recession was taking its toll on many business around the country, but the primary sector was faring better than others.
"The primary sector has not been immune but the main effects have hit the service sector," Mr Crack said.
This meant retailers, restaurants and tourism operators were taking a hit as people kept a closer eye on their wallets.
The global recession was only "going to go down before it goes up" and "everything points to more closures in the servicing and manufacturing sectors".
The region's economic situation was reflected in recent employment statistics.
Otago's quarterly regional labour market report for December 2008 showed the region's unemployment rate dropped from 3.3% in December 2007 to 3.1%.
This figure was lower than the country's rate of 4.6%. The labour force was 99,100 people.
Of those, 96,000 were employed and 3100 were unemployed. Of those, 1197 were receiving unemployment benefits.
"The southern reaches of New Zealand are almost entirely better off than the national average, which suggests Auckland is distorting the figure," Mr Crack said.
