McKinsey Research published today shows Australia’s economy risks sleepwalking into collapse if there is no change in economic priorities. 

 

After a week of disastrous National Accounts data and concerning OECD forecasts – this is yet another warning shot for Australians on the exorbitant cost of another three years of Labor’s failed economic plan.  

 

This week the National Accounts showed the Albanese Labor Government has delivered the longest household recession on record and the biggest collapse in living standards in 50 years.  

 

The latest OECD Economic Outlook confirmed there is no light at the end of the tunnel for the economy under Labor with Australia’s economy growing below the world and G20 average over the next three years and forecast to have higher inflation than Germany, Spain, Japan, France, Canada, Korea and the United States next year.

 

The McKinsey Report “Reviving the ‘golden goose’ of Australia Inc” makes it clear that our country faces a national emergency due to collapsing business investment, falling living standards and productivity that has plummeted to 2016 levels.  

 

Australia’s productivity growth has collapsed to the bottom of the league table among rich countries meaning we are at the back of the pack in achieving our economic potential. 

 

As government grows at three times the size of the private economy, Australians will not enjoy the prosperity of previous generations. Under Labor Australia is becoming an unattractive place to do business with more government intervention, bad workplace laws, higher taxes and unnecessary red tape and regulation. 

 

The National Accounts on Wednesday confirmed productivity has collapsed by an unprecedented six per cent in the two and a half years since Labor took office.  

 

Shadow Treasurer Angus Taylor said the report was one of three major scorecards this week showing Australia’s economy was heading in the wrong direction under Labor. 

 

“Labor has failed on the economy and failed Australians,” Mr Taylor said.  

 

“The OECD and experts are clear: governments need to rein in spending, reduce debt and deregulate their economies to boost investment, innovation and economic growth. 

 

“Instead, Australia is on the wrong track under Labor’s failed economic management. Labor’s combination of higher taxes, reckless spending and big government is keeping prices high and making Australians poorer. Labor is making Australia a home of bureaucracies, not businesses.  

 

“The cost of failing to change course will mean higher inflation, less growth and tougher lives for Australians who have done it hard under almost three years of failed Labor economics.  

 

“Productivity is essential to deliver sustainable higher real wages and lower inflation. Real action on productivity is essential so the next generation can enjoy a better quality of life than the one before it.  

 

“Australia needs solutions to our collapsing economy not more subsidies and more big government. The Coalition’s plan to get back on track and back to basics will put fighting inflation and driving productivity growth at its core.  

 

“The Coalition will rebuild our economy by boosting investment, increasing competition, cutting government waste and red tape, rebuilding business, lowering taxes and delivering secure, low emissions energy. This is the only way to bring down inflation sustainably and restore Australians’ living standards. 

 

“Only a Peter Dutton-led Coalition Government will rebuild strong economic management and get Australia back on track.” 

 

ENDS.