New Zealand population growth slows further on economic weakness

NEW Zealand’s population growth slowed further in the second quarter as the pace of immigration wanes and more citizens look overseas for job opportunities and better wages.

The estimated population increased by 7,000 in the three months to June, Statistics New Zealand said on Monday (Aug 19). That’s the weakest pace since the second quarter of 2022. The gain reflected net immigration of just 2,000 – also the lowest quarterly read since mid-2022 – and a natural increase of 5,100.

Record numbers of New Zealanders are looking overseas for career opportunities, particularly in Australia. At the same time, a sluggish economy is pushing up the jobless rate and damping demand for foreign workers.

Last week, the Reserve Bank of New Zealand began easing monetary policy earlier than previously signalled and said a decline in immigration is among the reasons for cooling inflation pressures. It expects net arrivals of people of working age will slow to 31,000 this year and to 23,300 in 2025.

Monday’s report showed the population increased by 93,500 or 1.8 per cent to 5,338,500 in the year ended Jun 30. That’s less than the revised 123,400 or 2.4 per cent increase in the 12 months to March.

Net immigration was 73,200 in the year to June – down from 103,400 in the 12 months to March – while the natural increase in the population was 20,300. BLOOMBERG