New Zealand’s population is growing at the slowest pace in almost three years as a sluggish economic recovery deters foreign immigrants and prompts more citizens to depart.
The estimated population grew by 37,400 in the 12 months through June, reaching almost 5.33 million, Statistics New Zealand said Tuesday in Wellington. That’s the weakest expansion since the third quarter of 2022.
Annual net immigration dropped to just 13,700 in the period — the lowest since 2022 — while there were 21,000 more births than deaths, the statistics agency said.
New Zealand’s economy has historically relied on population growth to stoke domestic demand and support growth, because productivity or output per worker is weaker than that of many comparable developed nations. Foreign workers also traditionally fill missing skills gaps across many industries and provide labor for major infrastructure projects.
Immigration has slowed as more New Zealand citizens look overseas for better-paying jobs as cooling economic growth pushes up the unemployment rate and caps wages. Some 71,851 citizens left in the 12 months through June — the most in 13 years.
At the same time, foreign workers are increasingly reluctant to head to New Zealand as job prospects dim. The annual number of nonresident arrivals has fallen by about 45,000 since June last year.
New Zealand’s economy has struggled to sustain a recovery from a deep recession in 2024 even as interest rates fall. The jobless rate has climbed to a five-year high of 5.2%, and economists are predicting economic growth stalled in the second quarter.
The Reserve Bank has cut the Official Cash Rate by 225 basis points since August last year and is expected to ease the benchmark further tomorrow.
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