The OECD has urged the federal and state governments to repair their budgets, as new data shows record growth in welfare spending while business investment languishes near a four-decade low, highlighting Treasurer Jim Chalmers’ challenge to spur a private sector-led economic recovery.
In its latest economic outlook, the Paris-based Organisation for Economic Co-operation found that business investment was 30 per cent weaker than what it should be in Australia, based on economic conditions. The outcome was the third-worst investment gap across the rich world and the OECD suggested that uncertainty could be hampering spending.
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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
John Kehoe is economics editor at Parliament House, Canberra. He writes on economics, politics and business. John was Washington correspondent covering Donald Trump’s first election. He joined the Financial Review in 2008 from Treasury. Connect with John on Twitter. Email John at jkehoe@afr.com
