Australia has a “productivity problem”

Thursday 16 March 2023

Federal Treasurer Jim Chalmers says a new report has confirmed that Australia has a “productivity problem”.

The 1,000-page report from the Productivity Commission shows that the nation’s productivity growth has averaged just 1.1% annually over the last decade.

The trend has seen Australia slip ten places in productivity ratings, falling from sixth to 60th in the OECD from 1970 to 2020 according to Chalmers, with Australia now sitting at 22% lower than the United States.

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About the author

Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.