Business investment is at recession levels as Australia’s productivity growth slumps to 30th out of 35 rich countries, according to a new McKinsey report that warns declining living standards are now a “national emergency”.
Australia has had zero labour productivity growth since 2016, showing up in higher costs for business and consumers, weaker real incomes and declining competitiveness for investment, McKinsey said in the report, Reviving the ‘golden goose’ of Australia Inc.
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John Kehoe is economics editor at Parliament House, Canberra. He writes on economics, politics and business. John was Washington correspondent covering Donald Trump’s election. He joined the Financial Review in 2008 from Treasury. Connect with John on Twitter. Email John at jkehoe@afr.com
Michael Read is the Financial Review's economics correspondent, reporting from the federal press gallery at Parliament House. He was previously an economist at the Reserve Bank of Australia and at UBS. Connect with Michael on Twitter. Email Michael at michael.read@afr.com