Australia warns of demographic shift as deaths exceed births by 2060s
by@Reuters
Summary
Australia projected a significant demographic shift, forecasting that deaths will surpass births by the 2060s, a trend already observed in other advanced economies like Japan, Germany, and South Korea. This alarming trend is exacerbated by an ageing population, declining birth rates, and recent cuts to immigration, as highlighted in the Treasury's Intergenerational Report. The report also warned that the number of Australians over 85 could triple by 2066, increasing the demand for healthcare services, an area that relies heavily on migrant workers. In response to rising support for the right-wing populist One Nation party, which advocates for stricter immigration policies, the Australian government has tightened its immigration rules.
Analysis
Australia: Australia is a developed nation in the Asia-Pacific region with an advanced economy that has historically relied on immigration to support population growth amid low fertility rates. The country faces significant long-term economic pressures from demographic changes including slower population increases and a rising share of older residents. This week's Intergenerational Report highlights these shifts as a key transformation for its economic outlook over the coming decades. Jim Chalmers: Jim Chalmers serves as Australia's Treasurer and is responsible for economic policy and fiscal reporting. He publicly presented findings from the Treasury's Intergenerational Report on demographic trends. Chalmers emphasized the implications of projected shifts where deaths are expected to exceed births in the coming decades. Anthony Albanese: Anthony Albanese is the Prime Minister of Australia leading the Labor government since 2022. His administration has focused on cost-of-living measures and immigration adjustments amid changing political dynamics. Albanese's government published the report warning of long-term pressures from an ageing population and declining birth rates. Labor government: The Labor government is the center-left administration currently leading Australia under Prime Minister Anthony Albanese. It recently adjusted immigration policies to address domestic concerns while navigating political challenges from rising support for populist parties. The government released the latest Intergenerational Report detailing major economic transformations including population ageing. Demographics: Several advanced economies including Japan, Germany and South Korea have already reached the point where deaths outnumber births. Policy Response: The Australian government tightened immigration rules in the week prior to the report's release. Economic Outlook: The Treasury report identifies ageing population alongside AI, geopolitical fragmentation, energy transition and a shift to services as the five major transformations ahead.
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macropolitics