Immigration still dropping

The slowdown in net migration is largely due to a rise in the number of permanent and long-term departures, particularly to Australia, ANZ Bank reports in its Economic Review publication. In the year ended August, there was a net outflow of 25,940 to Australia; an increase from the 20,447 net outflow in the year to August 2006.

Permanent and long-term arrivals to New Zealand remain relatively stable.

The continued easing in net migration inflows will be welcomed by the Reserve Bank, say ANZ economists.

“Net migration is now providing less impetus to housing demand than at the start of the year and is one of the contributing factors behind the recent slowing in housing market activity,” the report says.