Figures released by Stats NZ this week showed Southland had a 9.8% increase in GDP in the year ended March 2025, which was the highest among all regions.
The statistics do not always represent economic growth but increases in volume and price levels.
The increase in Southland was driven primarily by agriculture, particularly dairy farming.
The West Coast, the smallest regional economy, had the next-largest increase, up 8.1%, which was also driven primarily by agriculture.
Southland Mayor Rob Scott said the result did not happen by chance and reflected the importance of Southland to New Zealand’s economy.
"I think it’s reflective of our hard-working agricultural sector.
"You could almost say we’re ... sitting down at the bottom of the country, but we’re holding the country up."
Southland Federated Farmers president Jason Herrick said the result reflected the hard work and resilience of the farming community, particularly the dairy sector.
Strong growth meant more jobs, more opportunities for businesses and a healthier regional economy overall, he said.
"When our farmers do well, the benefits ripple through the wider community — from service providers and suppliers to schools and local infrastructure."
It was also a reminder farming underpinned so much of Southland’s prosperity.
Southland Business Chamber chief executive Sheree Carey said the result showed the strength of the Southland economy.
"It is a strong sign of Southland’s resilience and potential, but it also reinforces the need to keep investing in the infrastructure, skills and business conditions that will support continued growth across the region."
Southland MP Joseph Mooney said the result confirmed farming was the backbone of the country.
"With the war in Iran affecting us and everyone in the world right now, this underlines the importance of our region and the primary sector, and places our region in a stronger position to deal with whatever comes our way."
Invercargill Mayor Tom Campbell said the result was great news but not a surprise.
"[The] Southland economy is booming and our future looks very bright."
Invercargill MP Penny Simmonds said the figures were a credit to the province and its hardworking people.
"We can hold our heads high in the knowledge that we are a province on the up and that our economic growth and performance outshines the rest of the country."
Southland overtook Wellington and Auckland to have the highest nominal GDP per capita in the year ended March 2025, at $95,061, compared with $94,438 in Wellington, $89,521 in Auckland and $85,095 in Taranaki.
Waikato, up 6.2%, and Northland, up 5.9%, also benefited from high dairy prices.
Auckland, which accounts for 37.5% of the national GDP, recorded a 2.1% increase and Canterbury, including the Chatham Islands, had an increase of 5.3%.
Wellington showed a 0.1% decrease.
GDP rose more strongly in the South Island, up 5.2% compared with a 2.8% increase in the North Island.
