RBA acknowledges that excessive immigration is killing productivity

Australia’s labour productivity performance has ranked among the lowest in the world.

The following chart shows that the Reserve Bank of Australia’s (RBA) projections for productivity growth have been far too optimistic over the past decade.

Last month, the RBA’s Head of Economic Analysis, Michael Plumb, tacitly admitted that Australia’s mass immigration policy has eroded productivity through the process of ‘capital shallowing’. That is, the population has grown faster than business and infrastructure investment, reducing the capital stock per person.