Australia’s GDP is soaring. But per capita GDP is not.
If the total income of the country is rising faster than the income of the individuals in it, that is because of population growth.
Where does Australia’s population growth come from? The ABS makes answering this question easy. Migration beats babies and has since around 2005.
Specifically, China, New Zealand and India.
The boom in population is not working to increase per capita GDP. But there is a political consensus around strong migration. Wonder why?
One answer is that in the absence of strong productivity growth, we need population growth to prevent unemployment. The other, equally true answer is that immigration appears to benefit the rich.
It’s hardly surprising new arrivals don’t capture for themselves their contribution to national income. That necessarily flows to business owners and those already established here. It’s not surprising. Next time someone complains about immigration, feel free to pass them this link.