New Kiwi numbers slowing

By Felicity Anderson, Nzoom.com Business News Editor

Wednesday 22nd May 2002

The number of people coming to live in New Zealand from overseas appears to be slowing down.

In April net migration into the country was 1,700 people, a 2,400 turn around on the same month last year.

For the year to the end of April there was a net inflow of 28,100 people - compared with a outflow of 11,400 the previous year.

Tony Alexander, Chief Economist of the Bank of New Zealand, says that's good for the economy.

He says the inflow has boosted the population by 0.7%, underpinning housing, retailing and labour force growth.

But he says the April month inflow is the weakest annual turnaround since August and down from the peak of 6,610 in January.

"The rate of gain is easing," Alexander says.

The year to April gain of just over 28,000 people is the highest since Sugust 1996. Alexander says attributing part of it to the September 11 terrorists' ttacks in the United States is probably right - 16% more Kiwis have come home last year, the biggest turnaround since February 1991.

But he says the strength of the NZ economy and a surge in foreign students are also reasons.

Alexander says his team doesn't see the current boom being sustained beyond mid-2003.

"Come 2004, we may face a net loss again as economies overseas perform much better," he forecasts.

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