This research report uses key economic indicators to compare Australia’s economic conditions in the post-pandemic years against previous decades. It finds that Australia is increasingly dependent on government spending and population growth to fuel headline economic growth. Meanwhile, economic growth in the private sector has been undermined by red tape and regulatory restrictions across all levels of government.

Key findings

• Annual per capita economic growth in the 2020s has been less than half the long-term average, and per capita growth has been negative in 10 of the last 13 quarters.
• Net overseas migration has totalled 1.3 million since the end of the pandemic. The growth of the overseas born population over the past 25 years has been double the growth of Australia’s housing stock.
• Government spending now constitutes 29% of economic activity, up from 21% at the start of the year 2000.
• Private investment and net export has declined since 2000, from 28% of economic activity to about 20%.