News | Environment
23 Sep 2017 3:22
NZCity News
NZCity CalculatorReturn to NZCity

  • Start Page
  • Personalise
  • Sport
  • Weather
  • Olympic Games
  • Ski Report
  • Finance
  • Shopping
  • Jobs
  • Horoscopes
  • Lotto Results
  • Photo Gallery
  • Site Gallery
  • TVNow
  • Dating
  • SearchNZ
  • NZSearch
  • Crime.co.nz
  • RugbyLeague
  • Make Home
  • About NZCity
  • Contact NZCity
  • Your Privacy
  • Advertising
  • Login
  • Join for Free

  •   Home > News > Environment

    Kaikoura quake to shave 0.1pc from GDP

    The 7.8 magnitude earthquake near Kaikoura last November will trim economic growth by about 0.1 of a percentage point over two years.



    The 7.8 magnitude earthquake near Kaikoura last November will trim economic growth by about 0.1 of a percentage point over two years.

    This is due to increases in the cost of transport to and from Canterbury and disrupted business operations, government-commissioned research shows.

    A Market Economics report prepared for the Ministry of Transport estimates the quake will hit gross domestic product by $465 million over two years, rising to $513m if the reconstruction takes longer than expected.

    The biggest losses to the economy are in manufacturing, which relies on transport links to ship their products to customers.

    The biggest economic impact was probably in the first six months after the quake, including the disruption of services in nearby Wellington and nets out over the two years as the response by the transport sector offsets losses in other sectors.

    "With higher transportation costs, NZ consumers can afford to spend less on other goods, and goods produced in NZ become less competitive with overseas goods," dragging on overall GDP, the report said.

    The report comes a day after Finance Minister Steven Joyce said the forecast cost of rebuilding the road and rail corridors in and around Kaikoura was reduced to between $1.1 billion and $1.3b from a previous estimate of between $1.4b and $2b.

    Mr Joyce earmarked $812m of new capital spending to rebuild State Highway 1 and said Kiwrail faced a bill of up to $400m to replace railway lines, much of which would be covered by insurance.

    The Market Economics report estimated the rebuilding cost for heavy and civil engineering work in Canterbury to be between $1.96b and $2.93b, with residential work estimated to be between $66m and $331m and non-residential work to be between $58m and $290m.

    For Wellington, the report estimated non-residential building construction work would cost between $712m and $3.56b, whereas residential buildings would cost between $37m and $183m and heavy and civil engineering between $16m and $23m.

    Economic Development and Transport Minister Simon Bridges said the government has committed "significant resources" to getting the affected communities back up and running, including starting construction work on the roads and providing business and staff support packages.


    NZN




    © 2017 NZN, NZCity


     Other Environment News
     22 Sep: Mexico earthquake: Jojutla residents come to terms with destruction, lack of government help
     22 Sep: Donald Trump: A week of 'biblical' proportions in the US
     22 Sep: Mexico earthquake: Rescue workers and volunteers describe harrowing search for survivors
     21 Sep: Heatwave could be heading to New Zealand
     20 Sep: Earthquake jolts central New Zealand
     20 Sep: No NZ injuries reported in Mexico quake
     20 Sep: Kaikoura seabed on road to recovery
     Top Stories

    RUGBY RUGBY
    Baby blues for Sopoaga, Barrett back in More...


    BUSINESS BUSINESS
    NZ dollar falls on eve of election More...



     Today's News

    Politics:
    Mexico earthquake: Jojutla residents come to terms with destruction, lack of government help 22:27

    Hockey:
    National Hockey League finalists found 21:57

    Entertainment:
    Channing Tatum can't get enough of his wife Jenna Dewan-Tatum's sexy butt 21:34

    Rugby League:
    No games over Scott: Cowboys NRL coach 21:17

    Politics:
    PNG sells Oil Search stake after deal leaves Government massively out of pocket 21:07

    Entertainment:
    Kirsten Dunst got more "stoned" than she's ever been in her life after she accidentally smoked a "full joint" on the set of 'Woodshock' 21:04

    Entertainment:
    Johnny Depp has been accused of "throwing his family under the bus" in a legal dispute against his former management company 20:34

    International:
    Bali volcano: Hundreds evacuated, travel advisory issued as Mt Agung threatens to erupt 20:27

    Entertainment:
    Kim Kardashian West has ignored Pamela Anderson's letter begging her to stop wearing fur 20:04

    Entertainment:
    Justin Timberlake and Jimmy Fallon used to debate about who'd cry the most whilst watching kids' movies 19:34


     News Search






    Power Search


    © 2017 New Zealand City Ltd