SYDNEY, Aug. 21 (Xinhua) -- A drop in young, skilled migrants coming to Australia due to COVID-19 could have a significant impact on the country's economy if no vaccine is found and travel bans persist, a report released Thursday by financial services giant KPMG stated.

The report recommended encouraging more international students to Australia in order to offset the potential population slump.

KPMG Chief Economist, Dr Brendan Rynne explained that the issues arise from the nature of Australia's immigration program, being deliberately tilted towards skilled migrants including university students and graduates, as well as younger people required to support Australia's ageing population.

Projections showed that if no vaccine is found for COVID-19 within 12 months, by the end of the decade Australia's population would fall short of a predicted 29 million people by 420,000. And with no vaccine within the next two years, the shortfall would be 1 million people.

The resulting loss in GDP was calculated at 117 billion Australian dollars per year (84 billion U.S. dollars) by 2030 which would have a direct impact on the living standard of Australians, projected at 2,800 Australian dollars (2,017 U.S. dollars) less disposable income per person.

The KPMG report argued that boosting international student numbers would increase the living standard of Australians, through the value they bring to the local economy during and after their period of study.

Those who stay on permanently add even more value through ongoing spending and tax payments, as well as reducing the age dependency ratio and strengthening the nation's skills base.

However, Rynne said that more incentives would be required to attract students to Australia, in a post-COVID-19 world where competition for international students would likely intensify.

KPMG's Global Lead for Education, Dr Stephen Parker said that long-term residency as a drawcard for overseas students should be more openly stated and encouraged.

"If international students make the sacrifices to come to study here, supporting our educational institutions and adding to our diversity, then we will look favorably upon them if they wish to stay," Parker said.

The report suggested that the Australian government should make post-study work rights last longer, add further permanent residency points for those staying on to work particularly in vocations experiencing skill shortages, and introduce an accelerated pathway to residency program for students, especially those in regional locations.