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What is behind the steady growth of Australia’s economy

Many articles and talks have been given about growing economy of Australia. However, one wonders how does this country still have a stable, growing economy with its labor force and small economy

Is there any miracle in the economy of this country? what makes Australia’s economical movement a growing one, is immigration. In other developed countries, the increase of the average age of the community has led to economical pressure causing more people to retire so no tax is paid to the government and Medicare expenses put more financial pressure on governments. But, in Australia, in spite of the skilled immigrants, the average age of the community is controlled (the arrival of young people) and every day the skilled labor forces being able to produce and pay taxes are added to the community reducing the pressure of the seniors’ expenditures on the government.

Educational Exports

Educations in Australia, constitutes 7.5% of the whole Australian exports which is worth 28 billion dollars. Although life expenditure is higher and university ranking are lower in Australia compared to America, England and Canada, why do foreign students still choose Australia as their destination?
-yes, that’s right. They hope to immigration and live in Australia.
Therefore, it can be concluded that immigration is the main reason for the amount of this educational export in Australia.

Construction industry

Construction industry constitutes 8% of the whole GDP (Gross Domestic Product) in Australia and more than one million people are employed in this industry.
The arrival of skilled, experienced and ready labor forces have kept housing demand constant for a long while and has boosted this industry.

Business visa

In 2017, about 2000 business visas have been issued which brought a capital of about one billion dollars to Australia. China is the first and Iran is the second business exporter to this country.
Apart from the capital entered, by starting a business, the immigrants not only increase the government tax revenue but also helps job creation.

Government concerns

Australia is a safe, law abiding and developed country with an elegant nature and a low density in which all these facilities are provided by the government. But concerns and changes about immigration and its reduction are the decrease of welfare facilities, such as schools, roads and public transportation. With the emergence of investors and skilled immigrants, we are able to develop infrastructures and road infrastructures to disperse the centralized population of big cities like Melbourne and Sydney.

What can happen?

Just remember that practice makes perfect and as long as looking towards immigration as an asset then we can make these assets to generate revenue for the country. Immigration not only leads to stability of Australia’s growing economy but also provides an opportunity to gain comparative advantages through some industries for Australia to compete globally.

Author: Seyedarmin Hashemi
Economist, Allameh Tabatabei University of Iran
Professional Accountant, RMIT University
Associate Member of CPA Australia

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