Economic woes trigger record exodus from New Zealand

A record number of people left New Zealand last year as high living costs and a deep recession prompted them to seek opportunities overseas.

Departures rose to 128,705 last year from 101,585 in 2023, Statistics New Zealand said on Monday in Wellington. Annual arrivals declined, resulting in a sharp drop in net immigration.

Both the increase in departures and the decline in foreign arrivals reflect a weaker labour market and slowing wage growth in an economy that contracted 2.1 per cent in the six months through September.

While that takes pressure off the housing market, slower population growth may also impede an economic recovery as the government pushes a pro-growth agenda ahead of the 2026 election.

“Weaker net immigration has eroded a key leg of support for the housing market, domestic demand and labour market capacity,” said Mark Smith, senior economist at ASB Bank in Auckland.