The seven steps Australia needs to take to safeguard its economy amid warnings the nation is 'complacent and has no guaranteed success in the next 50 year'
- A new report ranks Australia in 37th in an economic sophistication index
- Warns Australia has become complacent not guaranteed economic success
- Australia has not built strong enough business or structural foundations
- The report has outlined seven steps that must be taken to boost the economy
Australia can't assume its 28 years of uninterrupted economic expansion will continue forever and must act now to security its, experts warn.
Deloitte warns Australia is complacent and not guaranteed the same success over the next 50 years as it faces challenges coming out of the Covid pandemic.
The report said major structural changes were underway in the global economy and Australian politicians and business leaders needed to adapt to effectively compete in a more complex and fragmented world.
A new report by consultant Deloitte has outlined seven steps for Australia to boost its economic sophistication (pictured, a meat aisle in Coles)
'Out of uncertainty and volatility, we have the opportunity to shape a new future for Australia,' Deloitte Australia chief executive Adam Powick said.
Central to Deloitte's report is its new economic sophistication index that ranks countries based on their value add to the goods and services they produce and how well their industries are connected to global supply chains.
Germany tops the table, followed by Britain with Australia at a mediocre 37th.
'It's a shock to realise we aren't doing as well as we think we are,' head of Deloitte Access Economics, Pradeep Phillip, said.
'With half a century of hindsight, it's little surprise that we have an economy characterised by low manufacturing capabilities and missed opportunities from not commercialising our strong research.'
Australia can create new value by using technology to turn its world-class health research into implementable health and wellbeing solutions,' the report argued
The report states that Australia has not built the business or structural foundations required for a diversified, resilient economy (pictured, a meat section in Woolworths)
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Dr Phillip said Australia hadn't built the business or structural foundations required for a diversified, resilient economy.
'Instead, we've been complacent with our success, and our lower value add and weaker connectedness with the global economy compared to our high-income peers is a serious issue for our future prosperity,' he said.
He said this would make Australia vulnerable if geopolitical tensions with China worsened or meaningful action on climate change caught Australia off-guard.
'If Australia's action on climate change continues to lag and, in response, overseas governments introduce limits on our high emission intensity production flows, this too would be devastating for the Australian economy,' Dr Phillip said.
'The world would no longer want what we have, and our Index ranking would drop.'
