Regional Forestry Dependence Varies Widely Across New Zealand

A recent NZIER report highlights significant variances in forestry's regional economic contribution across New Zealand. The sector contributed $5.4 billion to the economy in 2024, accounting for about 1.4% of GDP.

Regional dependence on forestry is particularly notable in the central North Island, Marlborough, and East Coast regions, where it outstrips beef cattle and dairy contributions to regional economies. In Gisborne/Tairāwhiti's region, forestry accounts for as much as 8% of regional GDP.

The report estimates that a 10% reduction in forestry output would inflict a decline in regional GDP of 1.19%, compared to only a .0006% decline nationally. The authors note that this may be understating the impact, particularly in areas like Gisborne where skills mismatches and land constraints can make transition difficult.