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New Zealand Immigration Accelerates to Five-Year High (Update2)
By Tracy Withers
Dec. 21 (Bloomberg) -- New Zealand’s annual immigration growth accelerated to the highest level in more than five years in November, adding to signs consumer spending and demand for housing may speed the economy’s recovery from a recession.
The number of permanent migrant arrivals exceeded departures by 20,021 in the year ended Nov. 30, Statistics New Zealand said today in Wellington. That’s up from 18,560 in the 12 months through October and is the most since the period ended July 2004.
Rising house prices and a gradual pickup in household spending are buoying the economy, which grew for the first time in six quarters in the three months ended June 30. Reserve Bank Governor Alan Bollard said on Dec. 10 that immigration may slow as more New Zealanders head overseas next year, and that will cool the increase in house prices.
“There’s a lack of supply in the housing market because with fewer people leaving, they’re not listing their homes for sale,” said Craig Ebert, senior economist at Bank of New Zealand Ltd. in Wellington. “That will reverse.”
New Zealand’s dollar bought 71.08 U.S. cents at 11.40 a.m. in Wellington from 71.12 cents before the report was released.
The central bank has kept the official cash rate at a record-low 2.5 percent since April, and Bollard said he doesn’t expect to raise borrowing costs until the middle of 2010. Rising house prices aren’t stoking inflation or encouraging households to overspend, he said.
Housing Recovery
House prices rose 9.6 percent in November from a three-year low in January, according to Real Estate Institute figures.
The increase in net immigration has been boosted by fewer New Zealanders heading abroad. About 17,883 fewer citizens left in the year ended Nov. 30 compared with the year earlier, the statistics agency said in today’s report.
Permanent departures fell 21 percent in the year ended Nov. 30, the report showed. Arrivals slipped 0.9 percent.
Analysts monitor a monthly, seasonally adjusted series to determine the pace of immigration. In November, a net 1,780 migrants arrived compared with 2,140 in October.
Tourist arrivals declined to a five-month low in November, which may curb spending in an industry that makes up about 10 percent of the New Zealand economy.
Short-term visitor arrivals fell 3.7 percent, seasonally adjusted, from October, the agency said. From a year earlier, unadjusted arrivals rose 0.3 percent.
The global recession cut international air travel, reducing tourist arrivals from Asia and Europe. The outbreak of swine flu also made people reluctant to travel earlier in 2009.
Arrivals in the 12 months ended Nov. 30 fell 0.6 percent from a year ago, led by a 36 percent plunge in tourists from South Korea and declines in visitors from Japan, China, the U.K. and the U.S.
Annual arrivals from Australia rose 10.3 percent after the government targeted that nation with extra marketing. Excluding Australia, visitors slumped 7.7 percent.
http://www.bloomberg.com/apps/news?pid=20601080&sid=aOSkz1W5lUsg
To contact the reporter on this story: Tracy Withers in Wellington at twithers@bloomberg.net
Last Updated: December 20, 2009 18:05 EST
By Tracy Withers
Dec. 21 (Bloomberg) -- New Zealand’s annual immigration growth accelerated to the highest level in more than five years in November, adding to signs consumer spending and demand for housing may speed the economy’s recovery from a recession.
The number of permanent migrant arrivals exceeded departures by 20,021 in the year ended Nov. 30, Statistics New Zealand said today in Wellington. That’s up from 18,560 in the 12 months through October and is the most since the period ended July 2004.
Rising house prices and a gradual pickup in household spending are buoying the economy, which grew for the first time in six quarters in the three months ended June 30. Reserve Bank Governor Alan Bollard said on Dec. 10 that immigration may slow as more New Zealanders head overseas next year, and that will cool the increase in house prices.
“There’s a lack of supply in the housing market because with fewer people leaving, they’re not listing their homes for sale,” said Craig Ebert, senior economist at Bank of New Zealand Ltd. in Wellington. “That will reverse.”
New Zealand’s dollar bought 71.08 U.S. cents at 11.40 a.m. in Wellington from 71.12 cents before the report was released.
The central bank has kept the official cash rate at a record-low 2.5 percent since April, and Bollard said he doesn’t expect to raise borrowing costs until the middle of 2010. Rising house prices aren’t stoking inflation or encouraging households to overspend, he said.
Housing Recovery
House prices rose 9.6 percent in November from a three-year low in January, according to Real Estate Institute figures.
The increase in net immigration has been boosted by fewer New Zealanders heading abroad. About 17,883 fewer citizens left in the year ended Nov. 30 compared with the year earlier, the statistics agency said in today’s report.
Permanent departures fell 21 percent in the year ended Nov. 30, the report showed. Arrivals slipped 0.9 percent.
Analysts monitor a monthly, seasonally adjusted series to determine the pace of immigration. In November, a net 1,780 migrants arrived compared with 2,140 in October.
Tourist arrivals declined to a five-month low in November, which may curb spending in an industry that makes up about 10 percent of the New Zealand economy.
Short-term visitor arrivals fell 3.7 percent, seasonally adjusted, from October, the agency said. From a year earlier, unadjusted arrivals rose 0.3 percent.
The global recession cut international air travel, reducing tourist arrivals from Asia and Europe. The outbreak of swine flu also made people reluctant to travel earlier in 2009.
Arrivals in the 12 months ended Nov. 30 fell 0.6 percent from a year ago, led by a 36 percent plunge in tourists from South Korea and declines in visitors from Japan, China, the U.K. and the U.S.
Annual arrivals from Australia rose 10.3 percent after the government targeted that nation with extra marketing. Excluding Australia, visitors slumped 7.7 percent.
http://www.bloomberg.com/apps/news?pid=20601080&sid=aOSkz1W5lUsg
To contact the reporter on this story: Tracy Withers in Wellington at twithers@bloomberg.net
Last Updated: December 20, 2009 18:05 EST