The latest ³Ô¹ÏÍøÕ¾ Account figures revealed the economy is barely growing, with gross domestic product in real per capita terms down for an unprecedented sixth straight quarter.
Outside the pandemic period, annual economic growth has not been this week since the recession of the early 1990s.
Business Council of Australia Chief Executive Bran Black said Australia was missing out on investment and economic growth because of increased red tape regulation, an inefficient tax system and uncertainty around project approvals.
“Outside the pandemic, this is the worst growth since the 1990s recession and it means the Government must act now to fix the basics so we can get more businesses to invest in Australia,” Mr. Black said.
“I constantly hear from CEOs that Australia is missing out on major investments because of our planning and regulation systems and the many duplicative taxes.
“Our economy is stumbling and now is the wrong time for the Government’s planned cap of international students, which will damage the economy, reduce growth and create long lasting damage to our fourth largest export,” Mr. Black said.
Business Council Chief Economist Stephen Walters said quarterly gross domestic product growth came in at just 0.2 per cent, while the annual growth of the economy came in at one per cent.
“Population growth and government spending continued to prop up the economy, but growth had gone backwards in per capita terms for the last year and a half, which is unprecedented,” Mr. Walters said.
“Productivity is falling again, making the Reserve Bank’s task of returning inflation to target even more difficult.”
“Weak productivity growth means firms must hire ever-more workers and increase their hours to lift output.”
“Australia’s economy has been brought to a halt, but sticky inflation means it will take longer for the Reserve Bank to even begin considering an interest rate cut.”
