Economists have called on the Australian government to reopen borders and resume skilled migration to Australia to prevent the economy from facing further setbacks.
Australia’s Parliamentary Budget Office (PBO) released an analysis of the ongoing pandemic’s impact on the country’s economy, which showed that the economy will have a shortfall of a record $178 billion this year.
Moreover, the net debt will rise to $800 billion in 2029-30 without the help of skilled migration to Australia.
According to the PBO, such a high deficit will occur due to lower tax receipts and record levels of spending during a slow economic growth.
The forecasts also show that the Australian economy has been especially dampened by falling numbers of overseas workers travelling to Australia on skilled visas, because of travel restrictions.
One remedy to improving the economy could be creating new a program to focus on attracting skilled migrants to Australia, which would not only boost the economy but also bring the country’s population growth up to speed, according to the PBO.
Deloitte Access Economics partner Chris Richardson further highlighted Australia’s need for skilled workers to return to the country, by describing their contribution as a “net upside” for the Australian government, as they have repeatedly proven to add to the country’s national revenues.