14 Sep Australia’s productivity challenge – why it matters and what to do about it
Key Points:
- The last twenty years have seen a sharp slowdown in productivity growth in Australia from over 2% pa to around 1.2% pa. This has adversely affected growth in living standards and real wages. It will adversely affect asset class returns if allowed to persist.
- Policies to boost productivity growth include: labour market reforms; more skills training; ongoing high levels of infrastructure spending; increased housing supply; competition reforms; measures to boost innovation; climate policy certainty; deregulation; and tax reform.
