Record Number of Departures from New Zealand Amid Economic Struggles
New Zealand is witnessing an unprecedented wave of emigration, with data indicating that 127,800 individuals left the country in the year leading up to November 2024. This figure marks a significant 28% increase compared to the previous year, setting a record for annual departures.
Statistics New Zealand reported that over half of those departing were citizens of New Zealand. The country, which has a population of approximately 5.3 million, has faced economic challenges that have recently led to a technical recession. The central bank has raised official cash rates to combat inflation, which has been at historically high levels.
Michael Gordon, a senior economist at Westpac, noted that many individuals are drawn to New Zealand for job opportunities, which have diminished in light of the current economic climate. He compared the situation to that of Australia, where a stronger economy has created more job prospects, prompting many New Zealanders to relocate.
Despite the outflow of residents, New Zealand continues to benefit from immigration, with net migration recorded at 30,600 in the same year. This figure represents the difference between those moving to New Zealand permanently and those leaving. In fact, net migration reached a peak of 135,700 in the year ending October 2023, suggesting that while people are leaving, the country remains an attractive destination for newcomers.
Gordon emphasized that net migration is now stabilizing at historical averages and will contribute positively to the economy in the long run. He pointed out that New Zealand is still seen as a desirable place to live for many, but various factors, including economic conditions, are influencing residents' decisions to seek opportunities abroad.
In summary, while the record number of departures signals concerns about New Zealand's economic health, the ongoing influx of immigrants indicates a complex dynamic where the country remains appealing to many despite current challenges.
