Australia's New South Wales (NSW) government's plan to cut immigration by half in order to ease the pressure on Sydney's infrastructure may end up costing the state around 130 billion Australian dollars (93.8 billion U.S. dollars), according to new economic modelling released on Monday.
The Property Council of Australia warned that cutting the state's migration numbers by 50,000 per year, that would equate to a workforce reduction of around 20,000 people per annum, meant a steep "loss of economic activity" that would be displaced to other Australian states.
Back in October, NSW Premier Gladys Berejiklian said, "My government has been playing catch-ups building the schools, hospitals, roads and transport links our state needs to deal with our growing population."
"It's becoming increasingly clear that the current growing rate of immigration to our state needs to be addressed."
"This is an opportunity for a new dawn on this important issue."
However, Australian National University demographer Liz Allen said, "It's not surprising that a cut to immigration would adversely impact the economy, as the results of this analysis (by the Property Council of Australia) show."
"The 190,000 annual permanent migrant cap is based on the available evidence, which suggests the best range of immigration for Australia's economic well-being is between 160,000-210,000 permanent migrants each year."
"Anything above or below this range risks Australia's economy and future prosperity."
"We must remember that Australia has avoided economic catastrophe thanks to immigration, and a cut to immigration presents a serious risk of recession," she added.
