PROGRESS 2050: Toward a prosperous future for all Australians
Discover Australia's key economic strengths, weaknesses, opportunities and threats.
Discover Australia's key economic strengths, weaknesses, opportunities and threats.
The decisions we make as a nation shape long-term outcomes for all Australians.
In recent years, governments and business have too often focused on the short-term, losing sight of the bigger picture – or ignoring it altogether. That’s why we’re launching Progress 2050, CEDA’s vision for a better Australia. This economic dashboard, available exclusively to our members, is our first project under Progress 2050. It sets out the current state of the Australian economy – our key strengths, weaknesses, opportunities and threats.
Our team has assessed Australia’s performance across our three guiding principles – identifying strengths, weaknesses, opportunities and threats.
Since the economic reforms of the 1980s-90s, Australia has had a strong and enviable track record of performance – almost three decades of uninterrupted economic growth, a record unequalled by any other developed economy.
This performance has been built on important strengths and has delivered high living standards for many Australians.
While acknowledging that success, weaknesses and cracks have been emerging in its foundations for some time. We also face significant structural change: an ageing population; climate change; technological shifts; and a rebalancing of the global economy.
None of this is new or unknown. We have become very good at analysing our problems and opportunities, but less effective at implementing policies and strategies to respond to them.
This dashboard provides a comprehensive overview of Australia's economic and social landscape and shows where we must focus our actions.
Discover economic trends over time and see where Australia is heading
Explore Australia’s global ranking across a range of metrics
Investigate the threats and opportunities Australia needs to address
Australia’s run of almost 29 years without recession, halted only by the COVID-19 pandemic, is unequalled among our developed economy peers and has been underpinned by known economic advantages and strengths.
As we look to sustain growth and prosperity, some of these strengths will need to be buttressed and protected, including our stable political environment, robust institutions, sound financial sector and strong social compact and safety net.
Others will need to pivot and evolve. Our natural resources have underpinned our economic success and can provide new opportunities in clean energy and products.
We must remain open to global markets, supply chains, investment, skills and strategic relationships.
We cannot presume that previous strengths will continue to support future prosperity. As our world-class health and care services face rising expectations and demand, costs are becoming unsustainable. Our workforce is highly educated, yet skills shortages are now pervasive.
We cannot afford to be complacent. It is vital that we shore up our strengths if we are to fulfill our economic potential.
Many Australians don’t feel they have shared in the economic prosperity of recent decades. We are no closer to sustainably improving outcomes for First Nations Australians, or those experiencing persistent poverty. This is unacceptable in one of the richest countries in the world on a per capita basis.
Several weaknesses have been building over time and the need to address them is now critical: housing affordability has reached crisis point; rates of chronic disease and mental illness are rising; and educational outcomes are falling behind.
These problems are severely impacting the lives of too many Australians. They are also creating a significant drag on our economy, leading to an unsustainable fiscal position unless we change course.
Business has a critical role to play in generating wealth for Australia’s future prosperity and service delivery. Yet they are suffering from weak productivity growth, dynamism and competition. This in part reflects a culture among business and government that has, over time, become more focused on the short term and risk averse.
There are major opportunities before us, but we must act now to reap the benefits.
Australia is well-placed to punch above its weight in the clean energy transition, but the potential benefits are by no means guaranteed and will require significant effort and cooperation to be realised.
The potential benefits of artificial intelligence and other new technologies are also uncertain and unassured, and more needs to be done to position us for the best chance of success.
Australia’s strong trade ties with our neighbours position us well to benefit from ongoing rapid growth in the Asia-Pacific region. Our large and growing services sector also has many opportunities to benefit from rising demand both at home and overseas.
Our skilled workforce will underpin our success (or failure) in these areas. To fulfill our potential, we must make better use of our people, by better matching workers and jobs and supporting improved workforce participation for all Australians who want to work.
Global threats are escalating.
Some threats have been on the horizon for some time but are now reaching crisis levels due to continued failure to adequately respond.
Climate change is causing widespread damage from more frequent and intense extreme weather. Population ageing is putting growing pressure on already stretched service providers and a narrowing tax base. Global economic uncertainty is rising and major advanced economies are becoming more inwardly focused.
Social cohesion is declining and frustration is building, as the gaps widen between rich and poor, and old and young. This threatens our social compact.
These major threats are not unique to Australia. Where we cannot mitigate the root cause, we must instead focus on our resilience and response.
We cannot assume that the strengths that have served us well in the past will be enough to guarantee future success in a changing world.
The scale and scope of the challenges Australia faces require immediate, sustained and focused effort.
Progress will not be achieved if we accept inconsistent or tepid policy responses.
We need to keep the focus on long-term outcomes to provide strong and sustainable growth to all Australians and continue to improve living standards and opportunities for all.