Australia Needs Population Growth to Achieve Economic Prosperity

An overlooked aspect of the Pacific nation’s economic outperformance has been the ability to attract a quarter of a million migrants every year, underpinning demand for everything from homes to cars, schools and hospitals.

“Provided population growth is planned for by government, it represents power to the economy,” said Craig James, chief economist at stockbroker and fund manger CommSec. “Businesses are in business because they want to grow and solid population growth assists in that.”

New South Wales, the country’s most populous state, plans to splurge A$60 billion ($55 billion) on infrastructure in just the next four years to meet growing demand.

For sure, having more people is hardly a panacea and clearly entails all sorts of environmental challenges. But again Australia is better placed than many to cope.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency
trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza