If the pandemic doesn’t shock us into reform, what will?
Australia was a small-debt country. Now it’s a middle-debt country. There is nothing in last week’s budget to stop it from becoming a big-debt country.
Australia’s economy is in need of structural reform, aimed at lifting productivity growth. This should include tax, competition policy and climate and energy policy reform. Last week’s budget did not address these issues.
Instead, it was largely aimed at seeking to relieve cost-of-living pressures for households ahead of the federal election.
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Paul Bloxham is HSBC’s chief economist for Australia, New Zealand and global commodities.
