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[BUSINESS] · Australia · 16 sources

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Australia Intergenerational Report warns of ageing population and economic shifts

The Australian Treasury has released its seventh Intergenerational Report, outlining significant economic and demographic shifts expected over the next four decades. A primary concern is a demographic transition where deaths are projected to outnumber births by the 2060s, driven by declining fertility rates and an ageing population. The number of Australians aged 85 and older is expected to triple to 1.9 million by 2066.

Treasurer Jim Chalmers identified five key transformations: artificial intelligence, the clean energy transition, an ageing population, industrial transformation, and geopolitical fragmentation. The report suggests that AI could serve as a major economic driver, potentially contributing up to A$116 billion to the GDP by 2036.

Financially, the report forecasts continued federal budget deficits through 2036-37. While gross federal debt as a share of GDP is expected to decline initially, long-term pressures from healthcare, aged care, and the National Disability Insurance Scheme could strain the budget. The government is also seeking public consultation on the future of AI infrastructure and data centres to support these technological shifts.

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Anthony Albanese · Australia · Australian Government · Australian National University · Australian National University · Australian Treasury · Jim Chalmers · Reserve Bank of Australia

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