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The Taranaki economy is beginning to recover, with growth returning in late 2025, although conditions remain uneven across key sectors, according to the latest Infometrics Quarterly Economic Monitor.
Provisional data shows regional GDP grew 1.2 per cent in the December 2025 quarter year-on-year, following earlier contractions. However, GDP was down 0.5 per cent for the full year, compared with national growth of 0.4 per cent.
Recovery under way
Te Puna Umanga Venture Taranaki chief executive Kelvin Wright says the results reflect a region in transition.
“While total growth for 2025 is still slightly negative, the rebound towards the end of last year is encouraging,” Kelvin says.
The primary sector remains a key driver, with strong global demand supporting the dairy industry and delivering an estimated $1.8 billion payout to Taranaki farmers.
Tourism trends diverge
Tourism performance remains mixed, with total visitor spending down 1.5 per cent over the year, reflecting weaker domestic demand.
Domestic guest nights were largely flat (down 0.3 per cent), indicating continued travel but more cautious spending behaviour.
However, international visitation is recovering, with international guest nights up 6.0 per cent in the year to December 2025.
Kelvin says offshore markets are helping to offset domestic softness.
“We are seeing international visitors steadily return, particularly from North America and Australia,” he says.
Ongoing challenges
Several sectors continue to weigh on the regional economy, including oil and gas, construction and manufacturing, while employment declined 1.7 per cent over the year.
The unemployment rate rose to 4.5 per cent, although this remains below the national average.
Business conditions also remain cautious, with modest growth in business numbers (0.5 per cent) and a decline in non-residential construction activity.
Outlook
Venture Taranaki says the focus remains on supporting sectors with growth potential while managing ongoing uncertainty.
The data highlights a gradual recovery, with tourism playing a stabilising role as international demand continues to rebuild.
