Business & Economy

Australia’s economy, population to experience Covid impact until 2060

Sydney, Australia, Jun 28 (EFE).- Australia will experience the economic and demographic effects of the Covid-19 pandemic for at least 40 years, according to a government report released on Monday, which also considers the long-term impact of climate change on the country.

“The Australian economy is projected to grow at a slower pace over the next 40 years than it has over the past 40 years,” due to the adverse impact of the pandemic, the Treasury’s 2021 Intergenerational Report says.

The main reason for this “expected slowdown” is “slower population growth” due to an aging population and a lower fertility rate that has been exacerbated during the Covid-19 pandemic.

According to official calculations, Australia’s population will reach 38.8 million by 2060 – a figure that before Covid-19 was projected to be achieved in 2054.

Although the report highlights that “economic recovery has exceeded the most optimistic of our expectations” and “is well underway” after the initial impact of Covid-19 that led the country into recession after 30 years of growth, the pace of growth will slow down.

According to the study, Australia’s gross domestic product will grow at an average annual rate of 2.6 percent in the next 40 years, around 0.4 percentage points below the annual average rate during the last 40 years. EFE


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