No surprises – Wellington hit hard by recession, says regional think tank

A decade-long economic "progress measure" for Wellington has revealed what many already knew – the recession was not good for the region.

The first Wellington regional strategy genuine progress index considers the region's economic, environmental, social and cultural progress from 2001.

The strategy group, headed by Wellington regional council functionary Melanie Thornton, introduced the so-called "genuine progress index" for the region after finding flaws in the traditional gross domestic product measurement.

The genuine progress index paints a rosier picture of Wellington than the GDP measurement.

It called the GDP measurement an "accounting system that attempts to measure whether a nation's or a community's growth, increased production of goods and expanding services have actually resulted in the improvement of the well-being of the people".

The strategy believes the region's economic well-being is about ensuring people have educational opportunities, employment and a decent income.

It also wants to see the region supporting businesses and creating opportunities for innovation and entrepreneurship.

Economic well-being was seen to be at its highest point in 2008 and its lowest in 2002 – during Helen Clark's Labour regime.

The global financial crisis saw the figure, under National, drop between 2008 and 2010. Despite this, the region's "economic well-being" jumped 9.9% in the nine years to 2010.

The report says Wellington households have higher purchasing power than those in the rest of New Zealand but suggests income inequality in the city is greater than other parts of the country and is growing.

Unpaid household and community work in Wellington has also been calculated and is estimated at just under $6 billion.

In the Wellington region, the report noted, the number of business start-ups increased gradually between 2001 and 2007 but has been dropping steadily since, with business closures on the rise.

The strategy group is hoping to update the progress report on an annual basis, with the addition of other variables, too.