(Bloomberg) -- New Zealand net immigration slowed to its lowest level in 19 months as record numbers of people head overseas for job opportunities and better pay.
Annual net permanent arrivals dropped to 53,846 in August from a revised 65,099 in the 12 months through July, Statistics New Zealand said Friday in Wellington. That’s the lowest level since January 2023. The peak of 136,380 was seen in October last year.
While the migrant inflow remains historically high, the focus has swung to the rising level of departures amid a sluggish domestic economy in which hiring has stalled and career prospects have dimmed. A record 134,300 people left the country in the year through August, including a record 81,200 New Zealand citizens.
“We’re forecasting annual net migration to slow to zero for the 2025 calendar year, reflecting the soft economy and fewer job opportunities in New Zealand,” said Michael Gordon, senior economist at Westpac Banking Corp. in Auckland. “This marked slowdown in population growth will in turn affect the outlook for the economy’s actual and potential growth rates.”
New Zealand’s economy shrank in the second quarter and many economists project it contracted again in the three months through September. The jobless rate is tipped to rise to more than 5.5% by mid-2025.
While more Kiwis are departing, the net number of foreign arrivals is also slowing, dropping to 109,930 in the year through August from a peak of more than 177,000 in October 2023.
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