New Zealand posts biggest population jump in more than 30 years

NEW Zealand posted its biggest jump in population in more than 30 years as net immigration surged to a record, raising the risk the associated higher demand could reignite inflation pressures.

The estimated population increased by 138,100 or 2.7 per cent in the 12 months till September, Statistics New Zealand said on Thursday (Nov 16) in Wellington. That’s the fastest pace since comparable data began being collated in 1992. The population rose to 5,269,200.

Population growth has recovered after the nation began re-opening its borders in 2022 following the Covid-19 pandemic and encouraged foreign workers to fill labour shortages. Data earlier this week showed a record net of 118,835 immigrants entered the country in the year till September.

The population surge occurred despite a natural increase of just 19,300 – the lowest for a September year since the series began.

Economists are watching the population surge in case it triggers extra demand and inflation just as the central bank is signalling it is done tightening. Still, there is also an expectation that the pace may have peaked and immigration will slow next year.

Population growth eased for a third straight quarter in the three months till September, rising by 33,000. That’s down from a 34,500 gain in the second quarter and a record 42,700 lift in the three months through March. BLOOMBERG