Tuesday, 26 December 2017

Boundless Plains to Share

Australia should not rely solely on immigration to boost its GDP.
Australia maintained GDP growth through the GFC.
But...
Inflation has been higher than GDP-per-capita increases.
Population growth continued despite a below-replacement fertility rate of 1.8.
In short, Australia's economy has been growing by adding more immigrants instead of empowering everyone to add more.
However...
Government expenditure grew 2.8% slower than GDP in the years 1990 to 2016. While far from miserly, this indicates a reluctance to invest in new and old Australians until waiting to see what can be extracted from them. While attitudes and numbers seem to be shifting, this risks both wasting opportunities to multiply the benefits of immigration, as well as souring locals and migrants on the notion of Australia as a desirable host.

Boundless plains need developing before they are shared.



Year GDP growth (annual %) GDP per capita growth (annual %) Inflation, consumer prices (annual %) Population growth (annual %) General government final consumption expenditure (annual % growth)
1990 3.53 2.01 7.27 1.48 2.65
2000 3.87 2.64 4.48 1.19 3.21
2008 3.70 1.64 4.35 2.00 3.16
2009 1.81 -0.26 1.82 2.06 4.25
2010 2.01 0.43 2.85 1.56 1.78
2011 2.37 0.96 3.30 1.39 3.39
2012 3.63 1.86 1.76 1.72 3.91
2013 2.57 0.84 2.45 1.70 0.61
2014 2.61 1.11 2.49 1.47 1.39
2015 2.42 1.01 1.51 1.39 2.30
2016 2.77 1.33 1.28 1.41 3.78
Source: World Bank

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