The Federal Government has today released the 2023 Intergenerational Report, which projects the outlook of Australia’s economy over the next 40 years.
This is done to understand the sustainability of federal policy, and to understand how future trends will influence Government spending.
Australia’s future life expectancy
Australia’s future life expectancy is expected to reach 87 years for men, and 89.5 years for women, by 2063. Current life expectancy is 81.3 years for males, and 85.4 for females.
The population of Aussies aged 65 and over will double by 2063, and those 85+ will triple. Fewer children are expected to be born.
Population is set to grow at its slowest rate since 1901. The population will grow at a 1.1% annual rate up to 2063. It had a 1.4% annual growth rate in the last 40 years.
Australia’s population is expected to reach 40.5 million by 2063. It’s currently around 26 million.
Australia’s economy is expected to be 2.5 times larger in 2063.
However, the rate of growth will slow in the next 40 years, largely due to Australia’s ageing population and slowed population growth.
It’s expected to slow at a similar pace as other advanced economies.
Workers in the care sector are expected to double in the next 40 years.
This includes those in health care and assistance workers. It already doubled over the last 20 years.
The report warns that climate change will influence how and where Australians live and work, and influence our resource security.
Becoming a “renewable energy superpower” was listed as a key factor to supporting future productivity.