Immigration

Treasury written question – answered on 20th May 2008.

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Photo of James Clappison James Clappison Shadow Spokesperson (Work and Pensions)

To ask the Chancellor of the Exchequer what estimate he has made of the effect of immigration on (a) gross domestic product and (b) per capita gross domestic product since 1997.

Photo of Angela Eagle Angela Eagle The Exchequer Secretary, Member, Labour Party National Executive Committee

Migration has added around 0.5 per cent. per annum to the working age population between 1997 and 2006, stimulating growth in total output. Average output growth over this period was 2.7 per cent. and migration is estimated to have contributed around 15-20 per cent. of this.

The direct impact of immigration on gross domestic product per capita has been small but broadly positive.

The impact of immigration on the economy is discussed in more detail in a cross-departmental report(1) in sections 3.3 and 3.4.

(1) Home Office and Department of Work and Pensions (2007). The Economic and Fiscal Impact of Immigration: A Cross-Departmental Submission to the House of Lords Select Committee on Economic Affairs:

http://www.homeoffice.gov.uk/documents/economic-impact-of-immigration.

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