New Zealand is experiencing a slowdown in population growth, attributed to a decrease in inward immigration and a growing number of citizens seeking opportunities abroad for employment and better pay.
According to Statistics New Zealand’s report released on Wednesday in Wellington, the estimated population increased by 24,600 in the first quarter, marking the slowest pace since the third quarter of 2022. This increase comprised a net immigration of 19,000, also the lowest quarterly figure since 2022, and a natural increase of 5,600.
The demand for foreign workers is diminishing in the country’s sluggish economy, coinciding with a surge in the number of New Zealanders exploring career prospects overseas. Nonetheless, immigration persists, fueling housing demand and contributing to the central bank’s concerns regarding inflation management.
Reserve Bank policymakers are anticipated to maintain the Official Cash Rate at 5.5% and uphold a vigilant stance in their upcoming meeting next week.
In the year ending March 31, the population grew by 130,700, representing a 2.5% increase to reach 5,338,900. This growth rate is lower than the revised figure of 153,800, marking a 3% increase in the 12 months leading to December 2023, which was the most rapid calendar-year population growth since 1946.
Net immigration stood at 111,145 for the March year, a decline from 134,445 in the 12 months up to December.
The natural increase in population was recorded at 19,600 in the year ending March, up slightly from 19,300 in December.