Invest
Shrinking population could cost $117bn a year
There could be a million fewer people in Australia by 2030 as COVID-19 sees international migration halt, which is expected to cost the nation up to $117 billion.
Shrinking population could cost $117bn a year
There could be a million fewer people in Australia by 2030 as COVID-19 sees international migration halt, which is expected to cost the nation up to $117 billion.
Research conducted by consulting firm KPMG has revealed the long-term implications of COVID-19 on Australia’s economy, which is heavily reliant on population growth.
KPMG’s forecast is based on two years without a vaccine, with the company stating a best-case scenario where a vaccine is found within 12 months will still see Australia’s population fall by 420,000.
The annual loss of GDP and national income from reduced immigration is caused by two factors.
The first is fewer working-age people supporting older Australians, as migrants are typically younger.
The second is the loss in productivity, since the immigration program is deliberately tilted towards skilled migrants, including university students and graduates.
“Our modelling found that even a modest 40,000 additional skilled working-age migrants would boost GDP by up to $4.7 billion by the end of the decade. Overseas students, if given a clearer pathway to residency, would be a means to achieving that end,” Dr Brendan Rynne, KPMG chief economist, said.
“Extra incentives will be needed to make them choose Australia, as in the post-COVID-19 world, competition for international students will be intense, so we propose an accelerated and targeted intake program.”
KPMG’s global lead for education, Dr Stephen Parker, said Australia’s international migration is vital for the nation's future, with the last decade immigration prospects for international students being left unstated.
“I think Australia should say openly that talented, working-age people must become a higher proportion of our overall population because our natural birth rate is below replacement levels and we have a growing number of retirees.”
“If international students make the sacrifices to come to study here, supporting our educational institutions and adding to our diversity, then we will look favourably upon them if they wish to stay,” Dr Parker said.
About the author
About the author
Economy
CPI data another piece in RBA's interest rate decision puzzle, says REIA
The latest Consumer Price Index (CPI) data from the Australian Bureau of Statistics (ABS) shows that inflation rose 3.4% in the 12 months to February 2024, unchanged from the previous two months, ...Read more
Economy
Including passive job seekers in unemployment measure doesn't impact economic cycle view, study finds
New research from e61 Institute has found that while current unemployment measures may not capture all job seekers, broader definitions that include passive job searchers do not provide better ...Read more
Economy
Survey reveals heightened job security concerns among IT workers in 2024
A recent survey conducted by Authority Hacker has revealed that 89.66% of IT workers in the United States have increased concerns about job loss in 2024. Read more
Economy
Australian founders adapt to the challenging fundraising environment with optimism and strategic shifts
The landscape for start-up funding in Australia has been increasingly challenging, but this has not dampened the spirit of the country's entrepreneurs. Read more
Economy
Signs point to possible US economic 'soft landing' in ClearBridge analysis
The US economy may be steering towards a 'soft landing' despite mixed signals from the stock market, according to a recent analysis by ClearBridge Investments. Read more
Economy
Alternative fund managers predict capital raising surge in 2024
Alternative investment fund managers are predicting a sizable increase in capital raising efforts in 2024, according to a global study by Ocorian, a leading alternative investment fund administratorRead more
Economy
Understanding the economic indicators that affect your earnings
The landscape of personal finance is profoundly influenced by broader economic trends and indicators. Read more
Economy
Navigate market turbulence with expert advice: no crystal ball needed
In an era fraught with investment market uncertainties, from fluctuating interest rates to geopolitical strife, seasoned market experts are guiding investors through the mire, offering sage advice on ...Read more
Economy
CPI data another piece in RBA's interest rate decision puzzle, says REIA
The latest Consumer Price Index (CPI) data from the Australian Bureau of Statistics (ABS) shows that inflation rose 3.4% in the 12 months to February 2024, unchanged from the previous two months, ...Read more
Economy
Including passive job seekers in unemployment measure doesn't impact economic cycle view, study finds
New research from e61 Institute has found that while current unemployment measures may not capture all job seekers, broader definitions that include passive job searchers do not provide better ...Read more
Economy
Survey reveals heightened job security concerns among IT workers in 2024
A recent survey conducted by Authority Hacker has revealed that 89.66% of IT workers in the United States have increased concerns about job loss in 2024. Read more
Economy
Australian founders adapt to the challenging fundraising environment with optimism and strategic shifts
The landscape for start-up funding in Australia has been increasingly challenging, but this has not dampened the spirit of the country's entrepreneurs. Read more
Economy
Signs point to possible US economic 'soft landing' in ClearBridge analysis
The US economy may be steering towards a 'soft landing' despite mixed signals from the stock market, according to a recent analysis by ClearBridge Investments. Read more
Economy
Alternative fund managers predict capital raising surge in 2024
Alternative investment fund managers are predicting a sizable increase in capital raising efforts in 2024, according to a global study by Ocorian, a leading alternative investment fund administratorRead more
Economy
Understanding the economic indicators that affect your earnings
The landscape of personal finance is profoundly influenced by broader economic trends and indicators. Read more
Economy
Navigate market turbulence with expert advice: no crystal ball needed
In an era fraught with investment market uncertainties, from fluctuating interest rates to geopolitical strife, seasoned market experts are guiding investors through the mire, offering sage advice on ...Read more