New Zealand’s population growth has slowed to its lowest level in two years, with just 7,000 people added in the second quarter of 2024. The country’s statistics agency reported that net immigration accounted for only 2,000 of the increase, while natural population growth contributed 5,100. The sluggish growth is attributed to a combination of factors, including a weakening economy and more New Zealanders seeking job opportunities abroad, particularly in neighboring Australia.
The country’s jobless rate has increased, dampening demand for foreign workers. In the year ending June 30, New Zealand’s population grew by 93,500, or 1.8%, reaching 5,338,500. This marks a significant slowdown from the previous year, which saw a 2.4% increase.
Population growth concerns intensify
Net immigration for the year stood at 73,200, down from 103,400 in the preceding 12 months. The Reserve Bank of New Zealand has noted the declining immigration trend, citing it as one of the reasons behind easing inflation pressures.
The central bank has begun loosening monetary policy earlier than previously signaled. It projects that net arrivals of working-age individuals will slow to 31,000 this year and further decrease to 23,300 in 2025. The population growth figures have raised concerns about the long-term economic implications for New Zealand.
Policymakers are grappling with the challenge of creating a more attractive environment for both local residents and potential immigrants to help sustain the country’s growth and development.
