Australia Heads for Historic Demographic Shift

Deaths in Australia are expected to outnumber births for the first time in the 2060s, according to an Intergenerational Report by the Australian Treasury, which highlights an aging population, declining fertility rates and slowing migration.

For decades, Australia has relied on immigration to offset its low birth rate. However, the Treasury expects population growth to slow to an average of 0.9% a year over the next four decades, down from 1.4% over the past 40 years.

Treasurer Jim Chalmers said the number of Australians over the age of 85 will triple by 2066, increasing pressure on the healthcare system.

At the same time, the aging population is expected to increase demand for care services. Regions with older populations will face greater labor shortages in healthcare and aged care, sectors that rely heavily on migrant workers. Prime Minister Anthony Albanese’s government tightened immigration rules last week.

The report also identifies artificial intelligence, geopolitical fragmentation and the energy transition among the key changes expected to affect the economy over the next four decades.

(Reuters, lud)