Low investment and productivity growth has left the country’s economy in the doldrums. The short-term challenges are large, but we can’t forget the long term.
Economist Gerard Minack recently issued a stark warning on the Australian economy. Even if the economic cycle improves, it is likely to remain stuck in a structural rut.
“Australia’s structural growth problem has been increasingly obvious since the mining boom peaked in 2012: low investment and fast population growth is crushing productivity growth, leading to structurally weak income growth,” Minack says.
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James Thomson is senior Chanticleer columnist based in Melbourne. He was the Companies editor and editor of BRW Magazine. Connect with James on Twitter. Email James at j.thomson@afr.com
