Regional economies are feeling the crunch

Infometrics data shows economic activity was 0.2 percent lower in the June 2024 quarter, compared to last year.

Principal Economist Brad Olsen says Tairawhiti has been hit the hardest, with the largest job decline of 1.2 percent, thanks to Cyclone Gabrielle, a weaker forestry sector, and high input costs.

He says with fewer jobs, there is less spending and therefore not as much business development.

Taranaki, Nelson, and Wellington have also seen falls, while job growth in Canterbury and Otago increased.