The deputy managing director of the International Monetary Fund (IMF) has said that immigration can be beneficial for the UK economy in terms of controlling inflation.
Antoinette Sayeh, who spoke at a conference in London on Tuesday, said that immigration can increase the supply of labour and reduce wage pressures, which in turn can lower the cost of goods and services.
She also said that immigration can boost productivity and innovation, as well as contribute to fiscal revenues and social cohesion. Sayeh acknowledged that immigration can also pose challenges for public services and social integration, but she argued that these can be addressed with appropriate policies and investments.
She urged the UK government to maintain a flexible and open immigration system that responds to the needs of the economy and society, especially in the context of Brexit and the Covid-19 pandemic.