Productivity growth goes in cycles and Australia is currently within the normal bounds of a low productivity growth period, rather than a crisis as commonly characterised.
KPMG's study on Australia's productivity outcomes indicates that the country's productivity alternates between enduring, albeit transient, phases of high and low growth.
The expected period of high growth regime typically extends for an estimated 8 quarters, while low productivity periods tend to last approximately 12 quarters. There are a number of key factors driving labour productivity, as well as options for policymakers to consider to help lift the country out of the current slowdown.
Download the report to read more.
Trends in Australia's productivity growth: Research and findings
Detailed analysis of the productivity growth performance of Australia.
How KPMG's Economics team can help
For KPMG’s productivity research, KPMG created a model that calculates the probability of being in each regime in a given quarter. The model is a regime-switching model that we use to study the tendency of productivity growth to move between periods.
If KPMG can help your business in any way navigate the current business environment and plan for any future developments that are facing the industry, then please contact us.
