The Reserve Bank governor has named immigration-driven population growth as the reason Australia outpaces other advanced economies.
In a speech in Sydney, Philip Lowe said the nation’s high immigration levels helped in slowing down the rate of population ageing, lowering the old-age dependency ratio and driving higher than average growth in recent years. Lowe said the influx of new migrants, whose median age sat between 20 and 25, helped upturn the demographic trends.
“Over the past five years, over 80% of net overseas migration has been accounted for by people under the age of 35,” said Lowe. “This has implications for future economic growth and the pressures on government budgets.”
Over the past ten years Australian population has grown by 1.5 per cent to reach 25 million on Wednesday, compared to other advanced economies which have less than 1 per cent growth.
Lowe’s comment followed the news that the federal government has cut permanent migration intake by 10 per cent over the past 12 months to 162,417, the lowest number in a decade. Home Affairs Minister Peter Dutton said this was a result of departmental crackdown.