Business News
Fixing Australia’s lagging productivity rate will likely take years rather than months, the man in charge of the nation’s finances concedes.
Fresh figures from the Australian Bureau of Statistics showed productivity falling by 0.2 per cent for the year to June, with it being flat for the most recent quarter.
Treasurer Jim Chalmers said productivity was still a major concern, as GDP figures further cemented the odds of the Reserve Bank lifting interest rates again.
“This is a two-decade problem that will take more than 12 months, or even more than a couple of years, to turn around,” he told ABC Radio on Thursday.
“Right around the world, with the possible exception of the US, countries have got a productivity challenge a bit like ours.”
Dr Chalmers said the GDP figures, which showed 2.1 per cent growth for the year to June, had major advantages, but serious challenges remained.