China is providing the most new permanent residents in New Zealand and numbers are expected to grow after falling in recent years, said a New Zealand government report on migration issued Friday.

The number of immigrants approved for a resident visa in the 2012-2013 financial year was 38,961, down 4 percent from 40,448 in the previous 12 months, according to the report by the Department of Labor.

China was the largest source country, accounting for 15 percent of immigrants, followed by Britain and India at 13 percent each.

"With an economy that grew 3.5 percent in the year to September 2013, and that the OECD (Organization for Economic Co-operation and Development) predicts will grow at 3.6 percent this year, New Zealand is well placed to perform well in the global competition for investment and talent," Immigration Minister Michael Woodhouse said in a statement on the report.

The report also said the number of international students approved to study in New Zealand had "continued to fall" over the 2012-2013 financial year, dropping 7 percent year on year to 64, 232, following a 7-percent fall the previous year.

"Likely factors that contributed to this decrease were the high New Zealand exchange rate, increased international competition for export education and the February 2011 Christchurch earthquake," it said.

"China remains the largest source country of international students (27 percent) followed by India (13 percent) and South Korea (8 percent)."