The report, which projects an outlook for the economy over the next 40 years, outlined three key points:
- Australia’s population is growing slower and ageing faster than expected, impacting economic growth and workforce participation.
- Australia’s economy will continue to grow but slower than previously thought and is dependent on productivity gains.
- Australian debt is sustainable and low by international standards, however the ageing population will put pressure on revenue and expenditure.
While Treasurer Josh Frydenberg said the speed of the Australian economy’s recovery on the back of the COVID-19 pandemic has “exceeded all expectations”, Anthony Albanese said the IGR “paints a pretty bleak future”.
“It predicts a future of weaker economic growth, a future of budget deficits and high debt, a future of sinking standards of living, a future of declining investment in education, a future of generational debt without a generational dividend,” he said while addressing the National Press Club on Friday.
“It is an admission of failure. They’re in black and white. We did not just drift into this by accident.”
Mr Albanese continued: “What makes this report even more unsettling is that its forecast depends on our productivity growth rate returning to its 30 year average of 1.5 per cent over the next decade.
“One word for this is ‘heroic.’”
Mr Albanese’s address came as Scott Morrison announced a four-step pathway for Australia to move from localised lockdowns to living with COVID-19.
Neil Griffiths
Neil is the Deputy Editor of the wealth titles, including ifa and InvestorDaily.
Neil is also the host of the ifa show podcast.
