CANBERRA, June 4 (Xinhua) -- The re-elected Australian government faces significant challenges in growing the economy, a report has found.
The latest assessment of Australia's productivity growth, released by the Productivity Commission on Tuesday, said that economic growth could be undermined by stagnant productivity growth.
According to the report, labour productivity rose just 0.4 percent in financial year 2017-18 and broader productivity 0.5 percent. By comparison, labour productivity has grown by an average of 2.2 percent per year since 1974.
"This period of flat real consumer wages growth is the longest since the wage stagnation experienced in the late 1980s and early 1990s, a time coinciding with a recession," the report said.
The data present a significant challenge for Prime Minister Scott Morrison and Treasurer Josh Frydenberg, who built their successful campaign for re-election on pledged economic growth as well as a promise to create 1.25 million new jobs within five years.
Innes Willox, chief executive of business lobby the Australian Industry Group, told News Corp Australia on Tuesday that there was not enough debate around productivity in the lead-up to the election on May 18.
"In contrast to the role it would play in expanding the country's future opportunities, the key challenge of productivity growth seems to have been put in the too-hard basket," he said.
"If it remains there, we will all suffer. And regardless of the lack of talk, it is essential that the incoming parliament puts boosting productivity at the top of its agenda."
Tuesday's report identified falling investment in plant and capital and falling research and development spending as reasons for the stagnant productivity growth. Enditem
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