Mayor's Message: The worm has turned
I am more confident about Nelson’s economic outlook than I have been in years due to the latest economic data and the strong pipeline of public and private investment planned for our city.
The optimism is shared by independent economist Benje Patterson, who said of Nelson last month: “The worm has turned.” It has been a difficult four years of post-Covid inflation, major storms, industry closures and fuel hikes. It will take time to blossom, but the green shoots of recovery are clear.
Key economic statistics tell part of the recovery story. Nelson-Tasman’s GDP was up 2.7% compared with 1.7% nationally for April-May-June. Consumer spending was up 2.2% compared with 0.6% nationally for the same months. Our employment data has picked up and unemployment for Nelson-Tasman is at 4.1%, less than the national average of 5.4%. Nelson building consents for new homes were up 35% in June 2026 compared with June 2025. Nelson traffic flows were up 9.2% in June 2026 compared with June 2025.
The NZ recovery is following a similar pattern to previous economic downturns. It is stronger in the South Island and driven by the export and tourism sectors. The regional economies of Southland, Otago and Canterbury are running hot, and the positive mood is moving up the country. Primary industries are doing well, with strong beef, lamb, fish, dairy and fruit prices.
International visitor numbers have recovered to above pre-Covid numbers nationally, albeit we need to lift our Nelson share. I welcome our Nelson Regional Development Agency partnering with others for a spring tourism promotion of the upper South Island and bookings for summer are looking positive.
Nelson also has the strongest pipeline of major projects ahead that I can recall in decades. The Morrison Square and Bridge to Better redevelopments are due for completion next August. Council has played an important role in securing investments in a new Connings Food Market in Rutherford Street and the Safari Group hotel-apartments in Bridge Street.
The fast-tracked Maitahi and Oakland housing developments in the Maitai Valley and Stoke involve hundreds of millions of dollars in investment. Council has just granted resource consents for the new six-storey inpatient building. Construction is due to start next year on this and a new parking building at Nelson Hospital. There are also six significant multi-storey housing developments underway in the central city.
These are good reasons for Nelson to be optimistic.
Mayor Nick Smith
