Regional gross domestic product

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Series Description

Title

Regional gross domestic product

Alternate Title

Regional GDP

Rights

Stats NZ

Abstract

Regional gross domestic product (regional GDP) is a geographic breakdown of national-level GDP, which is New Zealand's official measure of economic activity.

Regional GDP is presented in current (nominal) prices, and measures the value of production in the prices prevailing at the time (inflation is not removed). The series is consistent with published national accounts industry and total GDP.

Purpose

Regional GDP provides coherent statistics about the economic activity of regions, using a well-recognised macroeconomic concept. The release is in response to interest in regional economies, reflected in regional GDP being added to the list of Tier 1 official statistics.

It supports Stats NZ’s objective of providing the information New Zealand needs to grow and prosper.

Frequency
  1. Annual

More information

Regional gross domestic product releases 2016 onward

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Regional gross domestic product releases 2010 to 2016

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Regional gross domestic product sources and methods

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National accounts

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Annual national accounts sources and methods

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National accounts (industry production and investment) releases

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Tourism satellite account releases

Studies

Coverage

Subjects
GDP, GDP by region, GDP per capita, Gross domestic product, Economy, Industry, National accounts, Region
Date
2000 -

Regional gross domestic product: Frequently asked questions

Label
Regional gross domestic product: Frequently asked questions

Methodology

Methodology

#Frequently asked questions

What is GDP?

Gross domestic product (GDP) is an internationally accepted measure of economic activity. There are three approaches to measuring GDP. The production approach (which is used for compiling regional GDP) measures the value added of producers, by deducting the value of goods and services used up in production from the total value of goods and services produced. GDP statistics can be presented in either current (nominal) or constant (real) prices. Regional GDP is reported in current prices only.

What is regional GDP?

When GDP is presented on a regional basis provides an indication of the size and structure of a regional economy and measures the changes taking place within. Statistics NZ’s regional GDP measures are compiled by industry using the production-approach and presented in current prices (inflation not removed).

What is the use of regional GDP?

Economic statistics such as regional GDP provide a basis for evaluating economic activity in a region and give an empirical basis on which to make economic decisions. It provides information to help understand the economic structures of regions and the factors influencing regional economic growth.

Could regional GDP be estimated using different regional classifications?

The methodology being used for regional GDP could in principle be adapted for different regional classifications, though in practice the choice is restricted to the classification used in the input data. Providing regional GDP estimates for different regional classifications would be a major exercise requiring additional funding. Also, the smaller the region being estimated, the more likely there are to be quality and confidentiality concerns with the estimates.

Why are some industries not separately available in your classifications?

We cannot publish all the regional statistics by industry because we need to aggregate results from some industries in order to meet quality and confidentiality standards in published statistics.

What about other economic statistics?

Regional GDP has current price production-based series or components of GDP by region, with statistics presented by industries. Its possible that in future we might produce other regional economic indicators, such as regional expenditure on GDP, regional constant price GDP, regional quarterly GDP, or a wider range of regional economic statistics.

Does the release have regional input-output tables?

Input-output tables analyse the individual components of the economy, including industries and goods and services. This type of table shows, in a matrix form, the interactions and dependencies between industries and commodities. We do not currently plan to include official regional input-output tables in the release.

Regional gross domestic product: General information

Label
Regional gross domestic product: General information

Methodology

Methodology

#General information GDP Compilation

The internationally preferred approach for regional GDP compilation is to directly measure the activity of local units (represented by geographic units in New Zealand), and build up regional accounts from this information. The geographic unit compilation approach is preferred as it directly measures value added.

This approach is also useful analytically, since it clearly links the activities of businesses within a region to the growth of that region. We’ve used this approach for most industries in New Zealand’s regional GDP estimates.

The method of building up regional estimates from geographic unit data is known as the ‘bottom-up’ approach. The alternative, where regional indicators are used to allocate national level GDP estimates to regions, is the ‘top-down’ approach.

A top-down approach is used if the bottom-up approach cannot be implemented for an industry. This is usually due to a lack of unit-level data for that industry. Because there are many exceptions to applying a bottom-up approach across-the-board, we’ve determined regional GDP methodology on an industry-by-industry basis. The top-down approach was used for industries such as: agriculture, part of property services, and ownership of owner-occupied dwellings.

Scope of regional gross domestic product

The regional GDP estimates are in current prices and are consistent with published production-based GDP. They are essentially the regional allocation of national GDP. An official constant-price regional GDP estimate is not available and would require us to develop a new methodology. The estimates do not provide information on inter-region flows.

Regional gross domestic product concepts

Regional GDP is conceptually the same as national GDP, with the GDP of each region summing to the national GDP total. In producing regional GDP, we use many concepts to decide how GDP is allocated to the specific regions. The residency concept clarifies whether GDP should be allocated to the producer’s location or to where the economic activity actually takes place.

See Regional GDP concepts, sources, and methods for information on how we treat residency, statistical units, and the valuation basis of regional GDP.

Backdated series 2000 to 2006

We derived the 2000–06 backdated regional GDP estimates at the industry level using a selection of methods, with the most appropriate method chosen depending on the period and data available.

For 2000–03, existing regional GDP feasibility numbers were released in 2007, based on the historic ANZSIC96 classification. We were able to ‘reuse’ the feasibility workings for a number of activities – mainly for those where the change to ANZSIC06 had little or no effect.

For 2005 and 2006, we analysed AES ANZSIC06 data as a basis for regional allocations and used it for a number of activities. For some activities, we used LEED gross earnings to derive regional ratios from 2000–06. Note that for some activities, LEED is a very good proxy for GDP, but for other activities it is not a suitable proxy. For activities where we reused the feasibility estimates in 2000–03 and used the AES data for 2005–06, there was a data gap for 2004. AES unit datasets on an ANZSIC06 basis were not available for 2004. In these instances, 2004 is generally estimated using regional ratios from the surrounding years. The 2004 allocation may be adjusted for large units that are important in particular regions. Where LEED data is used there is no data gap.

Industry breakdowns

Where possible we provide a finer-level industry breakdown for selected industries:

• Forestry, fishing, mining, electricity, gas, water, and waste services:

  • forestry, fishing, and mining
  • electricity, gas, water, and waste services

• Manufacturing:

  • primary manufacturing
  • other manufacturing

• Primary manufacturing in regional GDP consists of these industries:

  • food, beverage, and tobacco product manufacturing
  • wood and paper products manufacturing
  • petroleum, chemical, polymer, and rubber product manufacturing
  • non-metallic mineral product manufacturing

• Other manufacturing consists of these industries:

  • textile, leather, clothing, and footwear manufacturing
  • printing
  • metal product manufacturing
  • transport equipment, machinery, and equipment manufacturing
  • furniture and other manufacturing

• Professional, scientific, and technical services

• Administrative and support services.

Regional population estimates

We use population estimates to calculate GDP per capita. These are the latest ‘estimated resident population’ of each region, sourced from the Census of Population and Dwellings.

The regional population estimates used in this release are derived, and differ, from subnational population estimates, which are published annually with a reference date of 30 June. We used mean population estimates to better reflect the average population over each March year. In this release, regional population estimates are the mean (average) for the years ended June, while regional GDP is for the years ended March.

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