Higher immigration numbers, which peaked at 72,400 in July last year, have been blamed for underpinning the housing crisis and also putting extra demand on infrastructure and facilities.
For the year to June, a net 66,800 foreigners immigrated to New Zealand, down from 72,300 a year ago, while a net 1800 New Zealand citizens departed the country, according to Statistics New Zealand population insights senior manager Michelle Feyen.
"An increase in migrants leaving, particularly non-New Zealand citizens, continued to be the key factor in lower annual net migration," she said in a statement.
ASB senior economist Jane Turner said much of the slowing in net migration reflected an increase in permanent and long-term departures.
The lift was in non-New Zealand citizens leaving. Departures to Australia remained "low and steady", while those leaving for Asia, Europe and the Americas was climbing, Mrs Turner said.
That scenario suggested the strong arrivals surge in recent years was now boosting the level of departures as some of those "long-term" residents went home, possibly after completing studies or because of the end of their two-year, youth working holiday visa, Mrs Turner said.
Westpac senior economist Satish Ranchhod said the decline to below 65,000 put immigration at its lowest level since November 2015.
"Much of the recent downtick in migration relates to flows with Australia," he said.
While departures across the Tasman had picked up, there were fewer New Zealanders and others coming here, Mr Ranchhod said.
"This is likely to be related to the firming in the Australian jobs market, as well as the prospect of warmer weather across the Ditch," he said.
SNZ’s Ms Feyen said while there had been an increase in migrants leaving, there was a decrease in migrant arrivals, and net migration remained high by historical standards.
"More New Zealand citizens are leaving the country long term than returning," she said.
The United Kingdom remained the biggest source of work-visa migrants, though that number dropped 2.5% to 7300 in the latest year, as did the second and third-largest sources, France and Germany, which respectively dropped 3.7% and 8.3%.
The biggest increases in work visa arrivals came from China, which rose 22.5% to 2300 in the year, and the Philippines, which was up 19% to 2500.
China continued to be the biggest source of migrants on residence visas, though that dropped 22% to 2700 in the year. Chinese migration remained the largest on a net basis, with 8100 of net arrivals coming from China, though that was down 21% on a year earlier. India was the second-largest source at a net 6800, though Indian net migration was also down 8% from a year earlier.
— Additional reporting Businessdesk
