Written by
28/08/2023
Treasurer Jim Chalmers has released one of the most important documents that will shape public policy for decades to come – 2023 Intergenerational Report.
By 2063, Australia’s economy is projected to be around 2.5 times larger and incomes 50% higher in real terms. However, like many other advanced countries, Australia’s economic growth is projected to be slower than in the past 40 years. This is driven by lower projected population growth and reduced participation due to aging.
Australia’s real GDP is projected to grow at an average annual pace of 2.2% from 2023 – 2063. That is 0.9% lower than the average growth of the past 40 years.
Services share of GDP and real GDP per capita
The economy and workforce has transformed by rising women’s participation and the shift from primary production and manufacturing towards services. These shifts have led to rising prosperity, higher paid jobs and a more open and globalised economy.
Overseas migration is expected to continue to be the driving force behind population growth, offsetting demographic challenges to some extent. The arrival of young immigrants will lower the median age of the population and adds to Australia’s working age population and skill base. This will see population increase to 40.5 million, which will be the slowest rate of growth in any 40-year period since federation.
Life expectancy is expected to increase from 81 for men to 85 and 87 for women to 89. This is will likely result in government’s incentivising seniors housing projects to solution Australia’s
accommodation crisis for our aging population. There is a huge opportunity in this space for developers.
You can download a copy of the 2023 Intergenerational Report here: https://treasury.gov.au/publication/2023-intergenerational-report
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