IMF: Immigrants can reduce inflation

International Monetary Fund (IMF) Vice President Gita Gopinath said immigrants can help reduce inflation in the UK by filling gaps in the local job market.

“There are benefits for workers who come in when inflation is so high,” Gopinath told the BBC.

“Having workers who can fill the gaps in some sectors when inflation is at this level will help bring inflation down,” Gopinath said.

Noting that immigrants can also contribute to tax revenue, Gopinath said: “In our view, if you have a well-designed immigration policy, the evidence is that overall it’s beneficial to the country.”

BREXIT DISCUSSION

Some economists argue that the impact of Brexit on labor migration and the tight labor market caused by the Covid pandemic are one of the main factors contributing to high inflation.

The data showed that annual inflation in the UK held at 8.7 percent in April due to rising food prices. Analysts had forecast a faster drop in inflation since 10.1 percent in March.

THE VIEWS OF THE GOVERNMENT THAT THE LEVEL OF MIGRATION IS HIGH

British Prime Minister Rishi Sunak last month said legal immigration levels were “too high” and announced restrictions on family visas for international students.

According to official figures, net migration in the UK reached a record 606,000 in 2022, increasing pressure on the Conservative government, which has vowed to reduce reliance on foreign labour.