NZ continues to post record net migration, with 67,400 gain in February year

New Zealand has continued to post record net migration, with a 67,400 gain in the 12 months ended February 29, led by arrivals from Australia, China and the Philippines.

Migrant arrivals rose 10% to 124,200 in the latest 12 month period, from a year earlier, while departures fell 1% to 56,900, Statistics New Zealand said. Net migration from Australia was a gain of 1600, the highest since September 1991 and the fifth straight month of annual gains.

Those on work visas jumped by 4700 to 38,600, while student visas climbed 3100 to 28,100 and arrivals of New Zealand and Australian citizens gained 2200 to 36,400. India was the biggest source of student arrivals, rising 1% to 10,100 from a year earlier, followed by those from China at 5800 and the Philippines on 2300.

Work visa arrivals were led by those from the UK, France, Germany and Australia. The biggest influx was to Auckland, where migrant arrivals rose 12% to 52,400 in the February year, of which work visas made up 16,500, student visas 13,000, Kiwi and Australian citizen arrivals 11,600 and resident visas 8500.

Strong inbound migration has helped underpin economic growth, which was 0.9% in the fourth quarter, for an annual pace of 2.3%, on increases in everything from business services to retailing, accommodation and home building. Migration has continued at a stronger pace than the Reserve Bank had expected, keeping wage inflation low even as demand rises.

"Net migration has gone from strength to strength over the past few years, consistently defying the most bullish of forecasts," said Westpac Banking Corp chief economist Dominick Stephens. "It now looks highly likely that annual net migration will surpass 70,000 by June, taking the population growth rate to a post-1974 high of 2.1%. Strong population growth is generating strong demand for residential construction activity and is supporting economic growth. Population growth is also boosting the supply side of the economy, limiting wage and inflation pressures."

Short-term visitor arrivals rose 9% to 373,400 last month, a record for a February month, including a leap-year boost of 9200 that arrived on February 29. Australia led the monthly influx, with a gain of 14,800 to 122,100, while those from China fell 2,800 to 53,200 and those from the UK gaining 3600 to 37,100.

Annual visitor arrivals rose 10% to a record 3.2 million, of which 1.34 million were from Australia, 268,300 from China and 247,900 from the US. Some 2.42 million New Zealanders departed on overseas trips in the February year, up 6% from a year earlier, with Australia the most popular destination at 1.14 million.

(BusinessDesk)