• Australia's population is projected to see deaths outnumber births for the first time in the 2060s.
• The growth rate is expected to slow to an average of 0.9% per year over the next four decades.
• Demographic shifts are anticipated to significantly increase the demand for healthcare services.
• Tighter immigration rules have been introduced amidst rising political pressures.
• The economic outlook remains mixed with high inflation and productivity concerns despite growth expectations.

Australia’s demographic landscape is set to change dramatically, with a forecast that deaths will exceed births by the 2060s, marking a significant milestone already experienced by countries such as Japan, Germany, and South Korea. This change poses serious challenges for the nation’s economy, which has heavily relied on immigration to sustain growth and counter low birth rates, according to Channel News Asia and Reuters.

The recent Intergenerational Report from Australia's Treasury highlights that the average population growth rate is expected to drop to 0.9% annually over the next four decades, down from 1.4% recorded in the previous 40 years. This decline is attributed to falling fertility rates and net overseas migration, leading to a projected population of 39.3 million by 2065-66, which is significantly lower than past estimates, according to India Times and Al Jazeera.

Additionally, Treasurer Jim Chalmers indicated that the number of Australians aged 85 and older is projected to triple by 2066, increasing demand for health services significantly. The report indicates that regions with older populations may experience serious labor shortages in healthcare and aged care sectors, which depend heavily on migrant workers, as noted by Channel News Asia and Reuters.

The Labor government has responded to these alarming demographics by tightening immigration rules, as rising support for the populist One Nation party has pressured the Prime Minister Anthony Albanese amidst his declining approval ratings, according to India Times and Reuters.

As the economy grapples with these demographic changes, there are concerns about productivity growth, which has been stagnant. While the Treasury anticipates that artificial intelligence and increased workforce participation may enhance economic growth, skepticism remains regarding these optimistic projections, as highlighted by Al Jazeera.