Finance and Economic

New Zealand’s annual immigration growth accelerated to the highest in more than five years in October, adding to signs consumer spending and demand for housing may speed the economy’s recovery from a recession.

The number of permanent migrant arrivals exceeded departures by 18,560 in the year ended Oct. 31, Statistics New Zealand said in a report released today in Wellington. That’s up from 17,043 in the 12 months through September and is the most since the period ended August 2004.

Reserve Bank Governor Alan Bollard last month said rising house prices and a gradual pick-up in household spending were buoying the economy, which grew for the first time in six quarters in the three months to June. Retail spending rose in the third quarter as consumer confidence increased to a 22-month high.

Bollard said on Oct. 29 that he is unlikely to raise the official cash rate from a record-low 2.5 percent until the second half of 2010 because the recovery requires more stimulus. Economists say the pace of the recovery may prompt him to raise interest rates as early as the first quarter.

The increase in net immigration has been boosted by fewer New Zealanders heading overseas. About 15,600 fewer citizens left in the year ended Oct. 31 compared with the year earlier, the statistics agency said.

Departures Drop

Permanent departures fell 18 percent in the year ended Oct fast payday loans. 31, today’s report showed. Arrivals fell 0.7 percent.

Analysts monitor a monthly, seasonally adjusted series to determine the pace of immigration. In October, a net 2,120 migrants arrived compared with 1,860 in September.

Tourist arrivals declined in October, which may slow spending in an industry that makes up about 10 percent of the New Zealand economy.

Short-term visitor arrivals fell 0.7 percent, seasonally adjusted, from September, the agency said.

From a year earlier, unadjusted arrivals increased 7.7 percent, buoyed by visitors from Australia.

The global recession has cut international air travel, reducing tourist arrivals from Asia and Europe. The outbreak of swine flu also made people reluctant to travel earlier in 2009.

Arrivals in the 12 months ended Oct. 31 fell 1 percent from a year earlier, led by a 38 percent plunge in tourists from South Korea and large declines in visitors from Japan, China, the U.K. and the U.S.

Annual arrivals from Australia rose 9.7 percent after the government targeted that nation with extra marketing. Excluding Australia, visitors slumped 7.9 percent.

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