Migrants in New Zealand

Migrants arrivals in New Zealand, including international students, migrants in the work force, tourists and residents, contribute enormously to NZ’s economic growth, making immigration vital to NZ’s economic growth.

This blog will focus on the key positive aspects immigration is having on NZ’s economy, whilst also taking in to account negative aspects that are relevant to the issue presented (although I have to admit, in my opinion are outweighed by positive aspects).

New Zealand is considered one of the most ethnically diverse countries in the world becoming home to migrants from all  around the world with 23% of it's population born overseas.

According to Immigration New Zealand research showed that the recent inflow of migrants is estimated to be worth $1.9 billion per year to NZ’s Gross Domestic Product  (GDP). That in itself, is an outstanding figure I feel needs to be highlighted. Money quite simply NZ’s economy would be crippled without. They also conducted another study in the years 2005/2006 finding migrants fiscal contribution to NZ was $3.3 billion which is significantly higher than NZ born citizens contribution of $2.8 billion. Migrants also contributed 25% of government revenue and accounted for only 18% of government expenditure providing the NZ government with a 7% profit. A whopping 927,000 overseas-born residents contributed income tax of approx $5,170 per head whilst the NZ born population contributed $4,930 per head. Can NZ's economy prosper without migrants financial contributions?

The diagram below shows NZ’s GDP growth rate since 2007: In the 2008-2010 era it is clear to see that there was a negative growth, this is when the world’s economic crisis was at its strongest. Since then the NZ GDP has gone from strength to strength barring two quarters in 2010 and 2011. This shows that after the economic downturn NZ’s economy has ‘pulled itself out of the red and back into the black’.

This chart shows that although NZ’s GDPs increase is not entirely due to immigration, there is positive correlation between migrants coming into NZ and the GDP increasing.

The graph above shows the net migration of NZ between the years 2000 and 2009. It is clear to see that their is more people coming onto these shores then leaving them. This could be a critical factor in making the overall NZ economy stronger. Migration is important, migration is crucial, and migration is necessary to making NZ a stronger nation.