Economic growth
Economic growth and development help underpin quality of life and enhance prosperity in urban and rural communities. The strength of the economy and levels of employment are closely related. A local economy that is growing and developing contributes to employment opportunities, and participation in paid employment is the main factor determining adequate income. Economic growth is a widely accepted measure of how well an economy (region or city) is performing. Faster economic growth generally translates into greater economic welfare, due to people having more purchasing power. Gross Domestic Product (GDP) is a convenient way of capturing in one figure all the partial indicators of economic performance – for example, more jobs, houses, tourists, etc.
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Indicator |
Explanation |
Representative measure |
Availability of measure |
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Tourism |
The number of short-term visitor arrivals in New Zealand and the number of bed nights purchased by tourists (both domestic and foreign) indicate the level of growth in a significant component of domestic economic activity. |
Number of guest nights purchased. |
Available monthly by regional tourism organisation and territorial authority from Statistics New Zealand. |
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Building |
Building and construction activity is a significant early indicator of overall economic activity. The level of residential building reflects population growth, interest rates, house price inflation and household income growth. Non-residential building relates to government spending and business investment. |
Building consents. |
Available monthly at all levels from Statistics New Zealand. |
International connection
International connection drives innovation, improved productivity and economic growth. It can be thought of as the broad range of economic and non-economic linkages that connect a country with the rest of the world and the infrastructure that makes them possible. These linkages include:
- flows of goods and services
- people
- investment
- information
- ideas
- knowledge
- technology and culture.
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Indicator |
Explanation |
Representative measure |
Availability of measure |
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Migration flows |
These indicators measure movements of usually resident population between given areas. These indicators show the change in the potential source of environmental pressure, resource need and pollutant source. Without human influence, there would only be natural processes occurring within the environment. People create the social and economic processes that impact on the environment. |
Skilled migration. |
Available monthly at all levels through contact with Statistics New Zealand. |
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Openness to trade |
An open and globally connected economy is necessary for New Zealand to achieve and sustain high growth rates. Openness and global connectedness give New Zealand access to capital, markets, skilled labour, networks, technology, competitively priced goods and services, other cultures and fresh perspectives. Evidence from other small economies indicates that internationalisation is necessary (although possibly not sufficient) for economic success. High levels of openness can also spur productivity improvements. |
Exports and imports of goods and services as a percentage of GDP. |
Available monthly at national level from Statistics New Zealand(1). |
(1) Information collected in surveys or administrative systems not designed to support regional analysis.
Standard of living
Economic standard of living concerns the physical circumstances in which people live, the goods and services they are able to consume, and the economic resources they have access to. It is concerned with the average level of resources in New Zealand as well as the distribution of those resources across New Zealand society. Basic necessities such as adequate food, clothing and housing are fundamental to well-being. The 1972 Royal Commission on Social Security agreed that a useful standard for adequacy was a level of resources that allowed individuals not just to survive, but also to participate in society. It defined participation as meaning "no-one is... so poor that they cannot eat the sort of food that New Zealanders usually eat, wear the same sort of clothes, [and] take a moderate part in those activities which the ordinary New Zealander takes part in as a matter of course."
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Indicator |
Explanation |
Representative measure |
Availability of measure |
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Income |
Income is a key indicator of individual, family and community well-being. Income levels indicate the ability of people to purchase essential and non-essential goods and services including food, housing, health, education, leisure and transport. It is the single most important changeable factor related to health and quality of life in general. |
Median household income. |
Available five-yearly at all levels through contact with Statistics New Zealand. |
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Social deprivation |
The economic and social circumstances of our cities’ residents impact significantly on their ability to provide for their everyday needs and to participate fully as members of their communities. Deprivation scores generally reflect the ability of households in New Zealand to achieve positive outcomes in areas such as health, income, education and employment. |
Social deprivation index. |
Available five-yearly at all levels through contact with Ministry of Health. |
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Share of national economy |
GDP per capita is one indicator of New Zealand's income. GDP measures the gross value of all goods and services produced in New Zealand. It is generally accepted as an internationally comparable indicator of material living standards. |
Real GDP per capita. |
Available quarterly at national level from Statistics New Zealand(1). |
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Household consumption |
Household expenditure patterns provide a basic indicator of the affordability of essential household items. They indicate the proportions of household income spent on essential and non-essential goods and services. Relatively high proportions of household income spent on food and housing can indicate that less is available to spend on other goods and services, including health, leisure and education. |
Real household consumption expenditure |
Available three-yearly at national level from Statistics New Zealand(1). |
(1) Information collected in surveys or administrative systems is not designed to support regional analysis.
Work
Paid employment is a major factor determining personal income, which in turn determines the ability of households to purchase goods and services. It also affects health, housing, education, and crime outcomes. People often define themselves by their employment status, and as a result, employment is also related to the ability of people to participate and have a sense of belonging in their community. Trends in employment and unemployment reflect the level of economic activity, demographic trends, skill levels and social policies. They can also show pressures within the labour market.
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Indicator |
Explanation |
Representative measure |
Availability of measure |
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Unemployment |
This is a key indicator of labour market outcomes and lack of access to employment. The unemployment rate is an important reflection of overall economic conditions and of the ease with which people are able to move into employment. |
Unemployment rate. |
Available quarterly at regional level, and five-yearly at territorial authority level, through contact with Statistics New Zealand(1). |
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Employment |
The employment rate is the best available indicator of the prevalence of paid employment. It captures trends in both unemployment and labour force participation (the proportion of the working-age population that is either employed or unemployed). |
Employment rate. |
Available quarterly at regional level, and five-yearly at territorial authority level, through contact with Statistics New Zealand. |
(1) Sample size great enough to produce regional indicators, but insufficient to produce indicators at territorial authority level.
Infrastructure
Infrastructure is a critical foundation for growth. Infrastructure refers to transport (roads, rail, ports and airports), electricity, gas, telecommunications and water infrastructure. Infrastructure is an important measure of sustainability because:
- a lack of infrastructure may restrict what the economy and regions can produce
- assets may be ‘stranded’ if they are overtaken by technological changes or similar events
- infrastructure assets typically have many users and it can be difficult to ensure that all users' quality, quantity and price expectations are met
- installing new infrastructure often involves long lead times.
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Indicator |
Explanation |
Representative measure |
Availability of measure |
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Real capital investment |
GDP would be a typical measure of the national economy, but for local government GDP per capita is a measure of the standard of living. This indicator shows the percentage that investment contributes to the value of economic output in the New Zealand economy over time. It shows the dependence of the New Zealand economy on the different economic sectors and how that may change over time. |
Investment as a percentage of real GDP. |
Available annually at national level from Statistics New Zealand(1). |
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Infrastructure |
Infrastructure can significantly affect the achievement of sustainable development objectives, given that it can have both positive and negative effects on the environment and social and cultural outcomes. |
Overall infrastructure quality. |
Available annually at national level from Ministry of Economic Development(1). |
(1) Information collected in surveys or administrative systems is not designed to support regional analysis.
Innovation
Innovation is the dynamic process of creating and introducing new ideas and new ways of doing things. Innovations may be incremental (small, stepwise improvements), major (substantial improvements), or radical (new lines of business, paradigm shifts). There are two traditional views of innovation: as an output and as a process. From a policy perspective, a more integrated and useful viewpoint also considers innovation as a system.
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Indicator |
Explanation |
Representative measure |
Availability of measure |
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Research and development (R&D) investment (by industry) |
Technological progress from R&D is seen as a key driver of long-term economic growth through increasing competitiveness and productivity. In addition to driving economic growth, technological progress can improve the quality of people's lives and the environment. Investment in R&D is crucial to transforming New Zealand into a highly skilled, high value-added economy. This investment is a useful measure of activities that support knowledge creation in an economy, but it is only a proxy for the benefits produced from it. |
R&D financing. |
Available two-yearly at national level from Statistics New Zealand(1). |
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Intangible investment |
Knowledge is a key driver of innovation. Investment in knowledge, along with investment in more efficient physical capital, is a factor in sustained productivity growth. Intangible investment as a percentage of GDP is a rough measure of a nation's investment in knowledge. This indicator captures some aspects of inputs into innovation. However, it does not measure the outcomes of investment in knowledge. |
Investment in knowledge as a percentage of GDP. |
Available ad hoc national level from Ministry of Research, Science and Technology(1). |
(1) Information collected in surveys or administrative systems is not designed to support regional analysis.
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