While Kiwibank says the increase is good for the country, it would also add to demand which was generally inflationary, which would somewhat stifle the central bank's efforts to drive down rising prices. Photo: 123RF
Net migration is forecast to pick up steam into next year, which Kiwibank says should be seen as a good news story for businesses crying out for staff.
Kiwibank economists crunched the latest data and believed the tide had turned on net annual outflows of migration, to just 8000 in September from 17,000 at the start of the year.
"And we're forecasting significant net migration inflows of over 30,000 people next year," bank chief economist Jarrod Kerr said.
If the forecast was correct, Kerr said it would be a mixed blessing for the Reserve Bank.
"While rising net migration will provide some relief to firms crying out for workers, it will
also add to the demand for everything."
Increased demand was generally inflationary, which would somewhat stifle the central bank's efforts to drive down rising prices.
More people would also place more pressure on an already stretched housing market, as well as infrastructure. However, Kerr said the increased migration was a positive for New Zealand Inc.
"In terms of our longer term aspirations as a country, we need net migration flow into into the country," he said.
"We have an ageing population like most countries, and migrants are a fountain of youth.
"You're bringing in people who are generally aged between 20 and 40, they are high participants, they're keen on working when they get here, so they're a good addition to the economy. So yeah, I've seen that migration as a net positive."