N.Z. Immigration Is Highest in More Than Four Years

By Tracy Withers

Sept. 21 (Bloomberg) -- New Zealand’s annual immigration growth accelerated to the highest level in more than four years in August, adding to signs that consumer spending and demand for housing may speed the economy’s recovery from a recession.

The number of permanent migrant arrivals exceeded departures by 15,642 in the year ended Aug. 31, Statistics New Zealand said in a report released today in Wellington. That’s up from 14,488 in the 12 months through July and is the most since the period ended November 2004.

Reserve Bank Governor Alan Bollard this month said a recovery in immigration is bolstering spending and will ensure the economy grows in the second half of this year, ending six quarters of recession. The increase in net immigration has been boosted by fewer New Zealanders heading overseas.

Permanent departures fell 12 percent in the year ended Aug. 31, the statistics agency said. Arrivals rose 0.9 percent.

Analysts monitor a monthly, seasonally adjusted series to determine the pace of immigration. In August, a net 1,620 migrants arrived compared with 2,420 in July, the agency said. That’s the slowest pace since January.

Tourist arrivals declined for the third time in four months in August, which may curb spending in an industry that makes up about 10 percent of the New Zealand economy.

Short-term visitor arrivals fell 0.8 percent from July, the agency said.

The global recession has cut international air travel, reducing tourist arrivals from Asia and Europe. The outbreak of swine flu has also made people reluctant to travel.

Arrivals in the year ended Aug. 31 fell 2.8 percent from a year earlier, led by a 30 percent plunge in arrivals from Japan and large declines in arrivals from South Korea, China, the U.K. and the U.S.

Annual arrivals from Australia rose 6.7 percent after the government targeted that nation with extra marketing. Excluding Australia, arrivals slumped 8.8 percent.

To contact the reporters on this story: Tracy Withers in Wellington at twithers@bloomberg.net