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High immigration masks Australian economic decline

The ABC’s Carrington Clarke reports (19.1.17) on some worrying trends in Australia’s economy, such as below-par jobs and wages growth, masked to a certain degree by strong population growth driven by immigration.

‘Australia has ridden 25 years of economic growth without a recession. An amazing stretch of prosperity and a badge of honour that governments of all persuasions have tried to claim as their own.

‘Much has been written about the importance of the 1980s economic reforms in setting Australia up for this quarter century of expansion. A mining boom of historical proportions was also a massive help.

‘But often underappreciated is the role that migration has played. A huge increase in migration has fuelled headline GDP growth, keeping Australia technically out of recession. But, it’s also masked a dirty secret, individuals haven’t felt the benefit of this record run.

‘In fact, since the GFC, Australia has seen per capita income go backwards and it’s only recently recovered.’

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