The International Monetary Fund (IMF) published a report that states that “receiving” and integrating “migrants” can “ease” tax burdens and promote growth in advanced economies, given the risks that come from the ageing population.

 “Migration can ease the ageing population pressure and contribute to other long term benefits, such as larger growth and greater productivity”, claims one of the chapters of the report “World Economic Outlook”.

As a matter of fact, “unless more people starts taking part in labour market, ageing can slowdown growth in advanced economies and undermine the sustainability of social security systems”.

According to IMF calculations, the average participation rate of the workforce will decrease 5.5% in the next 30 years, and certain European countries such as France and Italy will have rates below 50%. “These dramatic demographic changes (…) force us to reflect on migration policies to promote the workforce supply in advanced economies”, the report states.

However, the organization acknowledges that “the arrival of migrants may pose challenges and political rejection, even though it might also benefit host countries”.

To provide an example of the success of expanding the focus of public policies, the organization leaded by Christine Lagarde pointed out “the importance of female participation, which has enabled reducing the effects of the ageing population”.

Source: ABC Economia