McKinsey Says Australia’s Weak Economy Now a ‘National Emergency’

A new report from the global consultancy warns a number of key economic indicators are waning.

Pedestrians and shoppers move along George Street in Sydney, Australia on Dec. 06, 2024. Lisa Maree Williams/Getty Images

Recession-level business investment, dropping productivity, and declining living standards means Australia now faces a “national emergency,” says consulting giant McKinsey and Co.

Australia has had zero labour productivity growth since 2016, which flows through the economy to create higher costs for businesses and consumers, weaker real incomes, and declining competitiveness for investment, McKinsey said in its latest report, “Reviving the ‘golden goose’ of Australia Inc.”