News Ltd economics reporter Jessica Irvine writes:
Our sporting teams may be locked in bitter rivalry: Wallabies vs. All Blacks; Diamonds vs. Silver Ferns.
But in the battle for economic supremacy, New Zealand is set to reign supreme.
While the Australian economy dominated over the past two decades, the tables are turning.
Australia survived the GFC with our two decade unbroken growth record intact, while New Zealand plunged into a year and a half long recession, before a deadly earthquake levelled its second biggest city of Christchurch in 2011.
But things have turned a corner for the New Zealand economy, says Saul Eslake, the chief economist at Bank of America Merrill Lynch.
“The situation has now changed. As we move into 2014 the New Zealand economy does so gathering momentum whereas the Australian economy is clearly limping and will continue to do so,” Eslake explains.
And the migration patterns are changing.
Could the flood of New Zealanders to our shores be about to reverse?
Better jobs prospects at home are already reducing migration flows to Australia, says Eslake.
“I think that is already evident in NZ’s own migration patterns, which show net emigration having fallen quite significantly.”
New Zealand’s economy expanded 3.5 per cent over the year to last September, outpacing growth in the Australian economy of just 2.3 per cent.
As a result, getting a job in Australia is getting harder while getting a job in New Zealand is getting easier.
New Zealand’s jobless rate dropped sharply from 7.2 per cent to 6.2 per cent, while Australia’s climbed from 5.4 per cent to 5.8 per cent.
Hopefully our rate will drop below 6%.