Australia’s Migrant Intake Must be Calibrated, Peter Costello Warns

Former Australian Treasurer Peter Costello has warned that the current national migrant intake must be managed carefully to find an equilibrium in which a struggling economy is supported without placing upward pressure on inflation. Speaking at the UBS Australasia Conference on Monday, Mr. Costello drew comparisons between Australia’s current and past immigration levels. “Australia has always been a migrant country and I’ve always supported immigration. But the levels of immigration now are extremely high,” Mr. Costello said. “In my day we were 120 [thousand]. Now that is an enormous adjustment for an economy, to bring in 500,000 to 600,000 people.” Mr. Costello said migration must be calibrated to avoid placing further positive demand shocks on the Australian housing market....