South Island Races Ahead in NZ Recovery Amidst Patchy Growth

New Zealand's economic recovery is making progress, but its pace varies significantly across different regions. Kiwibank's latest Regional Score shows that Queenstown topped the rankings with a 'feels-like' score of 9 out of 10, followed by Southland and Otago on 7. In contrast, Taranaki and Wellington scored low at 3 each.

The divide reflects a recovery moving at different speeds depending on where you are, according to Kiwibank chief economist Jarrod Kerr. 'The economy is improving, but it's doing so at different speeds across the country,' he said.

Labour market and property data also show the North-South gap, with unemployment averaging 6% in the North Island compared to 3.7% in the South. National underutilisation sits at an elevated 13.8%, with Northland recording one of the weakest results.