While the Covid-19 pandemic is generally accepted as having wrought profound changes on the world, a report by consultancy Deloitte Access Economics indicates that it will lead to fundamental changes for Australia.
Australia has come to depend on immigration for population growth and to replenish its labour force. This is in common with many other developed societies.
However, the closing of its borders in the wake of the pandemic has put a halt to immigration. The consultancy predicts that the increase in population by 2022 will be smaller by about 600 000 people than would have been the case without the pandemic
This will have implications for economic growth – in future the country’s economy would be some 3% smaller, permanently, than had previously been assumed.
In addition, reduced population growth through immigration would impact on school numbers, housing construction and infrastructure development.
‘If demographics is destiny, then our destiny just got a lot more challenging,’ the consultancy said.
[Picture: OpenClipart-Vectors from Pixabay]