Wellington
New Zealand’s household net worth experienced a decrease of NZ$33.5 billion ($19 billion) during the June quarter, marking the sixth consecutive quarter of falling net worth, according to data from the national statistics department. Household net worth has declined by NZ$255.2 billion over the past six quarters, following a period of growth until the December quarter of 2021. Stats NZ’s National Accounts Institutional Sectors Senior Manager, Paul Pascoe, noted that the latest decline in household net worth was primarily attributed to the ongoing decrease in the value of equity and investment fund shares, as well as the value of owner-occupied property. The decreasing property values have been a significant factor in the ongoing fall in household net worth since the September quarter of 2022. Equity and investment fund shares decreased by 2.2 percent in the June quarter, with equity including the ownership of rental properties, which has also been affected by declining property values. However, this decrease in equity and investment fund shares was partially offset by a NZ$3.3 billion increase in currency and deposits and a NZ$2.6 billion rise in insurance and pensions, with the latter driven by higher pension entitlements and decreasing outstanding insurance claims related to events like Cyclone Gabrielle and Auckland Anniversary flood payouts. Additionally, a NZ$2.5 billion increase in household loans contributed to the overall decline in household net worth. The data reflects the evolving financial landscape for households in New Zealand, highlighting the importance of ongoing monitoring and analysis to understand economic trends and challenges.
