Wellington, Oct 17: New Zealand’s household net worth fell by NZ$33.5 billion ($19 billion) in the June quarter, marking a continuation of the decline seen in the previous five quarters. The information was released by the national statistics department, Stats NZ, Xinhua news agency reported.
Over the past six quarters, household net worth has seen a significant decline of NZ$255.2 billion. This is in contrast to the period of growth that extended through the December quarter of 2021.
Paul Pascoe, senior manager of the national accounts institutional sector at Stats NZ, attributed the decline in household net worth this quarter mainly to the ongoing decline in equity and investment fund shares, as well as the value of owner-occupied property.
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The decline in property values has been a major factor in the decline in household net worth since the September quarter of 2022. Equally affected were equity and investment fund shares, which declined 2.2 per cent during the quarter. Equity includes ownership of rental properties, which has also been affected by declining real estate values.
Despite these declines, there were some offsetting factors, including an increase of NZ$3.3 billion in currency and deposits, as well as an increase of NZ$2.6 billion in insurance and pensions. The increase in insurance and pensions was attributed to higher pension entitlements and a reduction in outstanding insurance claims, mainly linked to events such as Cyclone Gabriel and the Auckland anniversary flood payments, as highlighted by Paul Pascoe.
