The Migrant Crisis:
A Chance for Europe to Stimulate Its Economy
An overwhelmed Europe could potentially boost its long-term economic outlook by instituting the right mechanics for migrants fleeing war-torn Syria.
“If Europe is smart, they will use the migrants to add to their population and boost productivity,” Economist Ken Goldstein said at a Conference Board press conference on Tuesday.
Low birth rates are not only stagnating Europe’s economy, but will become one of the main issues hindering growth across the globe over the next ten years, Goldstein said.
The European Union is currently recording a GDP growth rate of around 1.4%, lagging behind the global average rate at 3%.
If Europe wants to boost its economic growth in the long term, it will need to reconsider its treatment of the 350,000-plus refugees that have poured into its borders since January. More are coming, according to CNN reports, and Europe must have a response plan.
Investing in the education and integration of these migrants will present Europe with a ready source of labor and diverse skills set, particularly to countries that have an aging population. And even if the first-generation migrants remain unskilled and hard to scale, their descendants are likely to paint a different picture.
Europe has been widely criticized for tightening borders amid a massive flow of migrants and asylum seekers. There can be a route to prosperity on both ends, as the migrants strive to create a better future for themselves and their children, and as businesses leverage the additional labor supply with more investment.
The Euro zone can turn the situation around by adjusting its perspective and treating the newcomers as a welcome opportunity, rather than an inconvenience.
