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Net migrant inflows to New Zealand remain strong, will support demand conditions in economy

The migration and travel figures are largely unchanged in New Zealand. Net migrant inflows continue to be strong, and are unlikely to see any significantly changes any time soon. New Zealand recorded a net inflow of 5,600 seasonally adjusted migrants, effectively the same as in July and similar to the average net inflow seen in the last six months, noted ANZ in a research note. Even if it is slightly lower from the record net inflows seen in the late 2015, the present rate is still historically high, with the three month annualized net inflow at 67.7k.

Permanent and long-term (PLT) arrivals dropped a tad by 1.2 percent sequentially in August; however, it continues to be widely stable at a historically high level. In the last 12 months, arrivals have reached 125k, with the numbers of arrivals on work visa continuing to remain strong (39.6k), along with number of returning New Zealand citizens (36.8k) and residence visas (15.7k).

But, the number of student visa arrivals moderated in the month. It came in at 26.2k, which is still strong but is down 2.2 percent on the 12 months prior, with a large drop in arrivals from India quite noticeable lately, added ANZ.

Meanwhile, permanent and long-term departures have widely remained stable in recent times. It dropped 2.3 percent seasonally adjusted month-on-month, as with arrivals, but it is a case of ‘more of the same’, as departures continue to be at a historically low level.

Arrivals of visitor dropped at a record level in August, falling 1.9 percent sequentially. On a year-on-year basis, it continues to be strong at 9 percent. Arrivals growth from China has weakened a bit. It rose only 4 percent year-on-year. However, growth in visitors from other Asian nations continues to be strong.

Overall, the large net inflows to New Zealand would continue to be a main pillar of support for demand conditions in the economy, according to ANZ.

“We are mindful that the strong NZD may dent average visitor spend, but that should be countered by sheer visitor numbers, ensuring total spending remains at strong levels”, added ANZ.

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