Treasurer says Australia is “well placed” but there are “warning signs”
What will Australia look like in 40 years' time?
The fifth Intergenerational Report has provided three key conclusions about the next four decades:
* The economy will continue to grow, but slower than previously thought. Growth is forecast to be 1.5% per year over the next 40 years, compared to 1.6% over the previous 40 years.
* Our population (currently 25.7 million) is growing slower and ageing faster than expected. Because our borders have been shut since the pandemic started, Australia's population is expected to reach 38.8 million in 2060-61, six years later than was forecast in the last Intergenerational Report.
* While Australia's debt is sustainable and low by international standards, the ageing of our population will put significant pressures on both revenue and expenditure. Net debt is projected to peak at 40.9% of GDP in 2024-25, before falling to 28.2% in 2044-45 and then increasing to 34.4% by 2060-61 (see chart).
Treasurer Josh Frydenberg, in releasing the report, said: "We are relatively well placed, but at the same time, there are warning signs. There remains much work to be done."
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