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Australia's Productivity: Past, Present and Future

A terms‐of‐trade shock boosted growth in income and living standards over the past decade. It also brought on Australia's productivity growth slump. Now that the terms of trade have peaked, re‐invigorated productivity growth is needed to boost income and living standards. However, the economy is still going through the adjustments that have stifled productivity growth. Australians may not enjoy the same growth in prosperity as they have over the past two decades.