Timaru District is tracking broadly in line with national economic trends, with new figures released today showing modest economic recovery in the year to March 2026.
The district’s GDP increased by 0.5% over the period, slightly ahead of the national figure of 0.4%. Canterbury recorded 1.2% growth, while neighbouring districts also posted stronger gains overall — Ashburton (1.6%), Mackenzie (1.8%), Waimate (2.6%) and Waitaki (2.7%).
The figures, released in the latest Infometrics Quarterly Economic Monitor, highlight agriculture, tourism and real estate activity as key contributors to Timaru District’s improving economic position, while construction and manufacturing continue to experience softer conditions.
Venture Timaru Chief Executive Nigel Davenport said the district’s economic performance reflected both the resilience and diversity of the wider South Canterbury economy. “While the recovery remains measured, there are encouraging signs emerging across several sectors of our economy. Our primary industries continue to underpin regional prosperity, while tourism, consumer spending and business confidence are all showing positive momentum,” he said.
Consumer spending in Timaru District rose 1.6% over the year, outperforming both Canterbury and national trends, while business numbers increased 2.2%, indicating growing confidence despite continued global and domestic economic pressures.
Tourism expenditure in the district increased strongly by 11.6% over the year. Tourism now supports approximately 1,378 jobs across Timaru District, representing 5.1% of all local employment.
“We’ve recently enjoyed significant national and international attention for our visitor offering and events sector, and it is pleasing to see that translating into real visitor expenditure,” Davenport said.
“What is particularly important is that many of these visitors are also travelling throughout the wider South Canterbury and North Otago areas. Increasingly, visitors experience this part of the South Island as a connected regional destination.”
Davenport said the economic links between neighbouring districts across South Canterbury and North Otago continued to strengthen.
“Our economy does not operate in isolation. The workforce, supply chains, visitor flows and business relationships across Timaru, Waimate, Mackenzie, Ashburton and Waitaki districts are increasingly interconnected, and that regional collaboration will become even more important as we collectively navigate future opportunities and challenges.”
The report notes that unemployment in Timaru District remains comparatively low at 4.0%, below both the Canterbury and national averages, although Jobseeker numbers continue to rise, particularly among the 40–54 age group and longer-term beneficiaries.
“There is no question some sectors and households are still facing pressure, particularly with ongoing global uncertainty and higher operating costs. However, the overall picture suggests a district that remains resilient, adaptable and well-positioned for longer-term growth,” Davenport said.
Read the full report here
Report Date 21 May 2026
