Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Permanent departures up, arrivals down

Permanent departures up, arrivals down

Net permanent migration flows have a substantial impact on New Zealand's small, open economy. Net permanent migration is trending lower as departures have increased and arrivals have flattened off. In the month of October, New Zealand gained just 260 long term immigrants, taking the annual sum down to 7,500. The annual sum of net migrants is now lower than the 8,300 reported in September, and well short of the cyclical peak of over 42,500 touched in mid-2003 (chart). As the charts below suggest, large swings in net permanent migration impact housing demand, consumption and even labour market dynamics (see research note attached). Should this downtrend continue, the downside to New Zealand's weakening housing market will be exacerbated.

Large swings in net migration often trigger economic instability in New Zealand. Rising net migration fuels demand for, and even speculative behaviour, in the housing sector, which stimulate non-tradables inflation and strengthens the need for tight monetary policy. Moreover, falling (or negative) net migration contributes to weakness in residential investment and domestic demand (charts). The current downturn is adding to the weakening demand in the housing market and will lower the floor under consumption growth.

Short term international travel in October was affected by the rugby world cup in France, with the number of NZ residents departing to France and the United Kingdom increasing 10%oya. There is no need to mention the result of the rugby world cup....... There were just 179,900 visitor arrivals in October, a decrease of 6,700 (4%oya) on the 186,600 visitor arrivals in October 2006. That said, given the strength of the NZD, the level of tourist flows into New Zealand has been surprisingly resilient. The number of visitor arrivals in October was the third highest total recorded for an October month.

Ends

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

I Sing The Highway Electric: Charge Net NZ To Connect New Zealand

BMW is turning Middle Earth electric after today announcing a substantial contribution to the charging network Charge Net NZ. This landmark partnership will enable Kiwis to drive their electric vehicles (EVs) right across New Zealand through the installation of a fast charging highway stretching from Kaitaia to Invercargill. More>>

ALSO:

Watch This Space: Mahia Rocket Lab Launch Site Officially Opened

Economic Development Minster Steven Joyce today opened New Zealand’s first orbital launch site, Rocket Lab Launch Complex 1, on the Mahia Peninsula on the North Island’s east coast. More>>

Earlier:

Marketing Rocks!
Ig Nobel Award Winners Assess The Personality Of Rocks

A Massey University marketing lecturer has received the 2016 Ig Nobel Prize for economics for a research project that asked university students to describe the “brand personalities” of three rocks. More>>

ALSO:

Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>

ALSO:

Half A Billion Accounts, Including Xtra: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>

ALSO:

Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news