Prices may not meet RBNZ prediction: Stephens
In his weekly video update, the Westpac chief economist points out that net immigration is extremely strong, at a 10-year high.
Over the past year, 36,000 more people have been added to the New Zealand population.
Stephens said that was entirely a transtasman phenomenon, as Australia’s economy slowed and New Zealand was doing well. He said fewer people were choosing to move to Australia but it was likely a temporary state of affairs.
“New Zealand won’t always be buoyed by the Canterbury rebuild and Australia won’t always be so slow,” he said.
Stephens expects the trend to turn around again, but not before 2015 or 2016.
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