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The Guardian - AU
The Guardian - AU
Business
Peter Hannam

Labor slashes Morrison government’s ‘unrealistic’ productivity forecasts

Treasurer Jim Chalmers
Labor has cut the estimate for future annual productivity growth, with treasurer Jim Chalmers saying an 'honest conversation was needed. Photograph: Mick Tsikas/AAP

The Albanese government has slashed the forecast of future gains in national productivity, saying the Coalition had relied on unrealistic predictions that hoped “no one would notice”.

The move cuts the estimate for future annual productivity growth by a fifth, from 1.5% to 1.2%. The revised forecast is in line with the average over the past 20 years and could lop billions of dollars off the size of future economic output.

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