Recent developments have highlighted the strength in economic conditions through the first half of the year. We expect that economic growth will continue ticking along at around 3% per annum for the next few years. However, the drivers of growth will shift over time.
Rapid population growth and record tourist inflows have provided a powerful boost to demand in the economy over the past few years. And it looks like these factors will continue to support demand for some time yet.
Looking first at population growth, net migration did ease back a little in April with a monthly inflow of 5,800. However, that's still very strong, and the annual inflow of 71,900 people is just shy of the record high reached in March. Strength in net migration has seen our demand base continue to expand, with population growth rising to more than 2% per annum. That's some of the fastest growth we've seen since the 1970s, and a rapid pace for any developed economy. We expect net migration will remain firm for some time yet, though it does look like the annual inflow has reached a plateau.
Looking to the next couple of years, we expect net migration will start to ease off as the global economy improves and more New Zealanders start to look at moving offshore. Nevertheless, this eventual easing in migration looks like it will be quite gradual.
All information contained on this website is given in good faith and has been derived from sources believed to be accurate. However, the information is selective and neither Westpac nor any other company in the Westpac Group have verified the information, which may not be complete or accurate for your purposes. Those companies make no representation or warranty of any kind as to the accuracy or completeness of the information. It is general information only and should not be considered as a comprehensive statement on any matter and should not be relied upon as such. Neither Westpac nor any other company in the Westpac Group nor any of their directors, employees and associates guarantees the security of this website, gives any warranty of reliability or accuracy nor accepts any responsibility arising in any other way including by reason of negligence for, errors in, or omissions from, the information on this website and does not accept any liability for any loss or damage, however caused, as a result of any person relying on any information on the website or being unable to access this website. This disclaimer is subject to any applicable contrary provisions of the Australian Securities and Investments Commission Act and Trade Practices Act.
Recommended Content
Editors’ Picks
EUR/USD drops below 1.0800 after German Retail Sales data
EUR/USD has come under fresh selling pressure and trades below 1.0800 after the data from Germany showed that Retail Sales declined by 1.9% MoM in February. Resurgent US Dollar demand is adding to the downside in the pair. US data are next in focus.
GBP/USD stays weak near 1.2600 amid market caution
GBP/USD remains defensive near 1.2600 in European trading on Thursday. The hawkish tone from Fed Governor Christopher Waller keeps the US Dollar afloat amid a cautious trading environment ahead of key US data releases and the Good Friday trading lull.
Gold price holds strength ahead of US core PCE inflation
Gold price holds onto gains near $2,200 in Thursday’s European session. The precious metal exhibits firm footing ahead of the United States core PCE Price Index data for February, which will be published on Friday.
XRP price falls to $0.60 support as Ripple ruling doesn’t help Coinbase lawsuit against SEC
XRP programmatic sales ruling by Judge Torres was completely rejected by another US Court that ruled in favor of the SEC in a lawsuit against Coinbase.
Portfolio rebalancing and reflation trades emerge into Q2
Yesterday’s price action pointed at a possible end-of-quarter portfolio rebalancing as the session saw the laggards of the quarter like Apple and Tesla gain, and the stars like Microsoft and Nvidia retreat.