Are record migrant remittances helping keep inflation in check?

From Nine To Noon, 9:40 am on 8 May 2024


The country's record net migration of 139,000 new arrivals in the last year has raised concerns about the potential impact on consumer demand and the flow-on to inflation. 

But a new report by Kiwibank economists presents a counter argument, pointing to a record level of remittances sent home by migrants.

For the first time last year, those remittances exceeded $1b, mostly to India, the Philippines and China.

Kiwibank senior economist and co-author Mary Jo Vergara says the huge surge of migrants has not translated into a growth in consumption here, and a closer look at migrant priorities is illustrative.