Australia’s healthy rate of immigration was lauded by the country’s Reserve Bank governor Philip Lowe for its contribution to growth at a recent event in Sydney. High Immigration Levels more Boon than Bane, says Reserve Bank Governor.
According to Lowe, the high immigration levels have had only positive impacts on the economy.
It has also helped to pacify the rate of the ageing of population in recent years.
This has resulted in Australia having not only one of the youngest populations amongst the advanced economies worldwide, but also a higher fertility rate and better prospects for growth.
Lowe appreciated the scores of young people who moved to Australia in the past decade, as the numbers had a very positive impact on the nation’s demographic.
He drew focus to the fact that back in 2002, the population’s median age was estimated to cross 45 years by 2040.
However, thanks to the growth in the number of youths over a decade, the latest estimate projected the median age to be around 40 years by 2040.
Lowe praised this statistic in particular, and said that this is a prime example which shows that demographic trends are not set in stone.
Data shows that on average, new migrants to Australia in recent years have been younger than the resident population.
The median age of recent migrants sits between 20 and 25, which is more than 10 years younger than that of Australian locals.
This proved to be a massive factor in stifling the rate of population ageing in Australia, and resulted in the population ageing more slowly now.
Moreover, the Australian population has a higher fertility rate than most advanced economies now, as well as having a lower old-age dependency ratio.
“This has implications for future economic growth and the pressures of government budgets,” said Lowe.
The benefits will be available both in the short term as well as the long run, as the unemployment rate is expected to fall to 5% – possibly even lower – in the next few years, and is presumed to sustain.