ASB economist Mark Smith said the number of people leaving New Zealand has peaked and is falling, but what happened next depended on how the country tracked compared with other economies.
“At the moment, we’re going through a really heightened period of global volatility, and that could encourage more New Zealanders to stay put. New Zealand remains a safe-haven place for people to work and live.”
Prime Minister Christopher Luxon said many New Zealanders who had moved to Australia had since moved back.
“We’re finding a lot of New Zealanders have found out the house prices are more expensive, then they have to pay a stamp duty. It turns out some of the jobs are pretty competitive, you can’t get a house to rent.
The Council of Trade Unions said New Zealand lags behind Australia for wages and workers’ rights, particularly for minimum wage and low-income workers.
But New Zealand’s GDP rose 0.8% in the March quarter, while Australia’s GDP growth slowed to 0.3%.
Reserve Bank forecasts, released before the fuel crisis, suggest New Zealand’s economy will outpace Australia’s over the next two years.
Writing in the Herald, Devon Funds Management chairman Slade Robertson said there were signs things were already moving more in New Zealand’s favour.
“Australia still has the stronger labour market and a larger, wealthier economy overall, but recent data suggests New Zealand is beginning to turn upward from a lower base, while Australia is showing signs of fatigue.
“That shift matters for investors, business owners and households because the next phase of growth may be led less by who is currently strongest and more by who is improving fastest.”
Luxon said the Government had further work to do to make New Zealand an attractive place to live and work.
“We have to build back the economy. We have to make it a safe place. We have to get better education and health in place.”
Michael Sergel is Newstalk ZB’s business reporter, covering the daily life of business and the business of daily life. He’s been covering business, politics, local government and consumer affairs for over a decade.