Migration stimulates global economy by $3 trillion, say studies

The global economy gets stimulated by $3 trillion, about four percent of world’s economic output, say new studies.

The latest reports published by both the International Monetary Fund and the McKinsey Global Institute underline the economic contribution of migrants.

Anu Madgavkar, the McKinsey report’s co-author, is quoted by the Financial Times as saying that as most of the world’s attractive destinations were societies where populations were ageing, they would benefit from growth in workforce coming in from other countries.

Published by the research arm of McKinsey, the report noted that immigrants who account for 3.4 percent of the population of the world account for 9.4 percent of the global output, which approximately is worth $6.7 trillion. Had immigrants stayed back in their home countries, the global produce would have been reduced by $3 trillion, it adds.

On the other hand, IMF’s economists in an article say that an increase of one percentage point in the migrants share in the working population of s developed nation can raise GDP by two percent in the long run. According to them, high as well as low-skilled workers contribute to a net growth.

But both reports find fault with government policies, especially integration, are aggravating their costs in the short term.

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