Monthly migration into New Zealand appears to have stabilised but at a very high level as Kiwis continue to return home from Australia.
Statistics New Zealand figures out yesterday showed monthly net migration in March was 5000, with annual migration for the year ended March rising to 56,275, compared with 55,121 in the year ended February.
Westpac senior economist Felix Delbruck said there was nothing in the data to change his view of annual net immigration approaching 60,000 later this year.
''The weak Australian economy is keeping New Zealanders at home and a surprisingly large number of Kiwis are coming back - perhaps some of these are people who left after the Canterbury earthquakes and are now returning.''
New Zealand's construction-fuelled economic upturn was continuing to draw in foreign workers in historically very large numbers.
The inflow of international students remained high, as it has been since visa rule changes made it easier for students to work.
Supportive factors were unlikely to weaken any time soon, he said.
Population growth - already the fastest since 2003 - was expected to accelerate further this year to just below 2% and remain high into next year.
That was good news for economic growth and would ease labour market pressures, but meant Auckland's housing squeeze would likely get worse before getting better, he said.
