It’s the hit that keeps on hitting
Slow productivity growth after the pandemic has shaved roughly $25 billion off Australia’s economic capacity, Reserve Bank research shows.
The poor performance was likely weighing on household incomes, RBA head of analysis Michael Plumb said on Thursday.
Mr Plumb said the research suggested “the size of the economy is a lot smaller than it would have been” because productivity growth has fallen far below the rate seen in the two decades to 2020.