RBA admits immigration is wrecking Australia's productivity

Last month, Justin Fabo from Antipodean Macro posted the following chart tracking labour productivity across major advanced nations.

As you can see, Australia’s labour productivity growth has been among the worst in the advanced world after recording zero improvement since 2016.

Last week, the Reserve Bank of Australia’s (RBA) Michael Plumb delivered a speech to a meeting of the Australian Business Economists, which admitted that the RBA’s forecasts of productivity growth have been too optimistic for a decade.

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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.

RBA admits immigration is wrecking Australia’s productivity