The Bay of Plenty was the strongest performing regional economy last year with a 7.7 per cent increase to its gross domestic product.

New figures released by Statistics New Zealand show 12 of the 15 regions' GDPs increased in 2016, with the Bay recording the largest, followed by Auckland (6 per cent) and Otago (4.8 per cent).

Nationally, the GDP rose 4.1 per cent in 2016.

In dollar value, the Bay's GDP value was $13.1 billion dollars last year and accounted for 5.2 per cent of New Zealand's overall GDP.

'The increase was underpinned by strong performances across the professional and administrative services, and agriculture industries, primarily kiwifruit,” says Stats NZ senior national accounts manager Gary Dunnet.

Over a five year period from 2011, the Bay's economy has been steadily on the rise, recording an increase of 21.7 per cent. This growth has been driven primarily by rental, hiring, and real estate services; construction; and owner-occupied property operation.

In 2014, the Bay's GDP increased 4.4 per cent and was led most notably by agriculture which was up 24.7 per cent. But the following year, the region's economy increased 1.9 per cent, despite the fact the agriculture industry decreased sharply by 30.9 per cent.

Gross domestic product by industry. Image: Stats NZ

Economic Development Minister and Tauranga MP Simon Bridges says it is great to see the Bay's economy going from strength to strength.

'There is a great vibe here in Tauranga and the Bay. We have seen huge population growth and with this we have seen a huge number of new businesses start here, or relocate to Tauranga.”

Statistics from the Companies Office show in 2016 there were 2066 new company incorporations in Tauranga. This was a 25 per cent increase on the year before in which there were 1684 new company incorporations in Tauranga.

'Tauranga has become a place that people want to move to, not just for our lifestyle, but as a place to work and do business. We are building great transport links, most people have access to ultra-fast broadband and we are building new schools to cater for roll growth.

'There has been strong performance in many sectors and industries in Tauranga and the Bay. Our agriculture and horticulture industries are booming and we are seeing a huge demand in the construction and building industry.

'All of this is driving new jobs and boosting our local economy.”

Simon adds the Government will continue to work intensively with regions through the Business Growth Agenda and the Regional Growth Programme.

'We are committed to helping every region in New Zealand achieve its potential by both attracting new investors and investing in the infrastructure for growth, be it ultrafast broadband to 150 more regional towns or key regional roading projects up and down the country.”

Image: Stats NZ