AUCKLAND ECONOMIC MONITOR

Auckland, like the rest of New Zealand and much of the world, is currently experiencing a period of economic challenge and uncertainty. Both inflation and interest rates remain relatively high, business and consumer confidence is down, and forecast growth is lower than what has been seen in recent years.

While it is important to acknowledge these challenges, Auckland’s focus on high value services, diversification of economic activities, and young highly skilled workforce, mean it is well placed to endure them. The economy proved to be more resilient than many had initially anticipated during the COVID-19 period, and experienced a strong recovery in 2022 and 2023.

Auckland is the driving force behind New Zealand’s economy with Te Ōhanga Māori (the Māori economy) deeply integrated into its fabric, reflecting our culture, people and place. With 33% of the population, Auckland generates 38% of the country’s GDP – $143bn in the year to March 2023. Over 60% of New Zealand’s top 200 companies are headquartered here. Auckland’s GDP grew faster than the rest of New Zealand in 2023, and has done so consistently since the GFC – the only exception was in 2021 during the COVID-19 period.

Auckland’s economy is well-diversified – more than any other area of New Zealand – but it has a relative focus on high value service industries driving growth and productivity.

To staff its high value service industries, Auckland has a large amount of skilled workers. The average Auckland worker earns over $80,000 and generates $147,000 in GDP. Auckland is home to the majority of New Zealand’s tech, financial and insurance services, and information media and telecommunications workforce.

Incomes have largely kept pace with inflation in recent years and, apart from a small blip in 2021, real GDP per capita has increased consistently since the GFC. However, it is quite possible that GDP per capita has declined over the last 12 months, given an estimated slowdown in economic growth and recent population growth driven by migration.

Auckland’s leading role in New Zealand’s economy shows no signs of relinquishing. Recent economic and population growth has outstripped the corresponding trends in the rest of New Zealand. Auckland is set to keep growing – the region is projected to account for 37% of New Zealand’s total population by 2048, and 40% of the working age population. This population is becoming increasingly diverse, with 180+ ethnicities calling Auckland home. Auckland is also the largest Polynesian city in the world, and our Māori and Pacific rangatahi (youth) will play an increasingly important role in shaping Auckland’s economic future, reflecting the culture, people and values of whanaungatanga (kinship), manaakitanga (hospitality) and kaitiakitanga (guardianship).