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ARTICLE · 05 DECEMBER 2016

Immigrants Help Advanced Economies Grow, IMF Report Finds

Immigrants have an undeniable long-term benefit for advanced economies and make a contribution over time that results in boosting the GDP of the country they move to.

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Immigrants have an undeniable long-term benefit for advanced economies, according to a new report from the International Monetary Fund (IMF).

Both high and low-skilled immigrants make a contribution over time that results in boosting the GDP of the country they move to, the study says.

The benefits are shared across the population of the host country, although high-skilled migration tends to help increase the income of the top 10 per cent of earners.

While immigrants can create problems in the short term centered around integration and increased government spending, these are outweighed by the longer-term advantages.

"While migration presents challenges for host countries, in particular the risk of societal and political strains if migrants do not integrate sufficiently or natives feel displaced, our results suggest that there are long-term benefits to immigration in terms of higher GDP per capita for recipient countries," the report says.

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