May 03, 2005

Fewer migrants coming to NZ

By Brian Fallow at the NZ Herald: "Dwindling net immigration has two opposing effects on interest rates. It reduces the economy's potential growth rate as the supply of labour grows more slowly, increasing the risk of inflationary bottlenecks. It also reduces pressure on the housing market, an inflationary hotspot, and eases growth in demand within the economy generally. "

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