New Zealand sees mass exodus to neighboring countries amid sluggish economic growth

The economic downturn in New Zealand has triggered a mass exodus to countries such as neighboring Australia where job prospects and salaries are greater, as the country struggles with sluggish economic growth.

Over the past year, the number of people leaving New Zealand has soared by 33 percent year over year to reach a record high, as they try to escape the high cost of living and rising unemployment.

According to data released by Stats NZ in late March, New Zealand's economy slid into a technical recession after its GDP dropped for two consecutive quarters last year. "So, it could be to do with the cost of living, job opportunities, job satisfaction and all sorts of things," said Michael Yoon, immigration lawyer at MY Law in New Zealand.

The signs of a stagnant economy are obvious from the closed retail stores to the mass layoff of public servants by a new government that has pledged to rebuild the economy. The leaving New Zealanders are lured to countries such as Australia through aggressive recruiting drives and a much bigger labor market.

Data on this year's economic growth is set to be published on September 19, said Stats NZ. Economic research institutes warned that the country's sluggish economic growth could last well into early 2025.

"Australia is a much bigger labor market. New South Wales or Sydney is bigger than the whole of the New Zealand labor market. So, you get job opportunities and pay which you simply can't get in New Zealand," said Paul Spoonley, a distinguished professor at Massey University.

The loss of a massive amount of young people between the ages of 25 and 40 can have a profound impact on the future fabric of New Zealand society, said Yoon, as he pointed out that the labor shortage is set to be fulfilled by an influx of migrant workers.

"If we keep losing them, then our reliance over time on migrant workers to fill those gaps is going to get bigger," he said.

New Zealand's net migration gain is well below last year's peak of almost 3,000 per week, but hundreds of thousands of migrants from India, the Philippines and China still see the country as a desirable place to live in.

"People from those countries might find New Zealand a very attractive destination. It's the quality of living. It's a peaceful environment. Also, education, job prospects," said Yoon.

New Zealand sees mass exodus to neighboring countries amid sluggish economic growth

New Zealand sees mass exodus to neighboring countries amid sluggish economic growth

The onshore Chinese currency renminbi, or the yuan, strengthened to below 7.10 against the U.S. dollar in August.

In August, the weighted average rate on new corporate loans registered around 3.6 percent, a decline of over 0.2 percentage points from an already relatively low benchmark in 2023.

This indicates that China has continued to lower the overall financing costs and is encouraging financial institutions to pass on profits to the real economy.

The RMB exchange rate has seen an appreciation. The U.S. dollar index, which measures the greenback against six major peers, has retreated from its peak since August, decreasing from above 104 to below 101, marking a new low in over a year with a decline of about 3 percent.

The onshore RMB exchange rate against the U.S. dollar has strengthened from a high point of 7.27 yuan in mid-July to below 7.10 yuan, a cumulative appreciation of 2 percent.

Cross-border funds continued to flow into the Chinese domestic market, maintaining a net increase trend. In August, overseas investors increased their net holdings of domestic bonds by approximately 17 billion U.S. dollars, marking the 12th consecutive month of net inflows.

Onshore Chinese yuan strengthens against USD in Aug