WELLINGTON — New Zealand experienced a record number of people leaving the country in the year leading up to November 2024, reflecting the country's economic struggles, which moved into a technical recession in the third quarter. Statistics New Zealand released data showing that 127,800 people departed the nation, a 28% increase from the previous year. This marked the highest annual outflow on record.

Over half of those leaving were New Zealand citizens, highlighting the impact on the local population. The country, with a population of 5.3 million, has faced growing economic difficulties, partially due to the central bank's efforts to combat high inflation by raising the official cash rate. These measures, while aimed at stabilizing the economy, have contributed to a lack of work opportunities, driving people to seek employment elsewhere.

Michael Gordon, a senior economist at Westpac, pointed out that many individuals migrate to New Zealand in search of better work prospects. However, when job opportunities decrease, people leave. He emphasized that Australia's economy remains relatively strong, offering more opportunities, which has led to a notable outflow of New Zealanders heading there.

Despite these outflows, inward migration continues to help balance the population change. Statistics New Zealand reported a net migration of 30,600 people for the year ending November 2024, although this is significantly lower than the peak of 135,700 in the year ending October 2023.

Gordon noted that net migration has returned to historic averages, and in the long run, it would provide support to New Zealand's economy. He also acknowledged that while New Zealand is an attractive place for many to live, destinations like Australia, the US, and the UK are also drawing people due to better opportunities.

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