New Zealand's household net worth falls for 6th consecutive quarter

Wellington, Oct 16 (IANS) New Zealand's household net worth fell NZ$33.5 billion ($19 billion) in the June quarter, following falls in the previous five quarters, the national statistics department said on Monday.

Stats NZ said that household net worth has fallen NZ$255.2 billion over the last six quarters, following a period of growth up to the December quarter 2021, Xinhua news agency reported.

"This quarter's decrease in household net worth was mainly due to the continuing fall in equity and investment fund shares and value of owner-occupied property," Stats NZ's national accounts institutional sectors senior manager Paul Pascoe said.

Decreased property values have led the falls in household net worth since the September quarter 2022, Pascoe said.

Equity and investment fund shares fell 2.2 per cent in this quarter. Equity includes the ownership of rental properties, which has also been impacted by falling property values, he said.

The fall in equity and investment fund shares was partly offset by a NZ$3.3 billion rise in currency and deposits, and a NZ$2.6 billion increase in insurance and pensions, statistics showed.

Insurance and pensions increased due to higher pension entitlements and decreasing outstanding insurance claims, mainly from Cyclone Gabrielle and Auckland Anniversary flood payouts, Pascoe said.

A rise in household loans of NZ$2.5 billion also contributed to the decline in household net worth, he said.