Economics 3.7

Poor competitiveness and economic growth

It slows growth by making it harder to sell goods locally and internationally, lowering GDP, incomes, and business activity.

Poor competitiveness and unemployment

High costs may cause firms to close or move overseas, leading to job losses and higher structural unemployment.

Material living standards and poor competitiveness

Slower GDP and income growth reduces the amount of goods and services people can consume.

Non-material living standards and poor competitiveness

Structural unemployment can harm mental/physical health, increase stress, and lower happiness.

Slower economic growth and non-material living standards

It may reduce environmental damage (e.g. lower pollution and resource depletion).

Cost factors reducing Australia's competitiveness

High wages, utility costs, taxes, and rising inflation increase business costs and reduce competitiveness.

Low productivity growth and competitiveness

It reduces efficiency, innovation, and the ability to compete on price and quality.

Infrastructure bottlenecks and competitiveness

They create delays, reduce efficiency, and increase costs for businesses.

Declining international competitiveness rankings

That Australia must improve productivity, manage wage growth, and boost innovation to stay competitive.

Key ways to boost productivity in Australia

1. Invest in better technology and training. 2. Support R&D and innovation to improve efficiency.

Reducing costs to improve competitiveness

Cut energy prices, fix infrastructure, address skills shortages, and ensure wages match productivity.

Lower taxes and competitiveness

Reducing company tax rates encourages business investment and lowers business operating costs.

Trade and investment and competitiveness

By signing more free trade agreements and attracting foreign investment through a better business environment.