Foreign students powering economic growth of Australia, says study

Foreign students powering economic growth of Australia

The Australian economy has registered a robust growth rate of 3.1 percent in the fiscal year ending March 2016.

Business Insider quotes UBS as opining that the increase in consumption levels was owing to the more than expected number of foreign students enrolling in Australia’s educational institutions. This has, in turn, also lead to population growth in the country stabilising at 1.4 percent per year. This is good news for the growth outlook of Australia feel the UBS Australian economics team comprising George Tharenou, Scott Haslem and Jim Xu.

While pursuing their studies, international students purchase goods and services in the country Down Under, thereby contributing to its economy. According to UBS, in addition to students coming for short-term studies, the number of international tourists arriving on Australian shores is also increasing at record levels. This leads to increased consumption, which bolsters the economy, allowing more jobs to be created and increasing the demand for residential housing. This is, in fact, offsetting the effect of Australians who are migrating to other countries.

UBS estimates the real GDP growth in Australia to be at 2.7 percent this year, which it expects would be maintained the year 2017 too.

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