Think tank says Australia’s economy is “drifting” due to weak productivity and business conditions

Multiple reports say a think tank has warned that Australia’s economy is “drifting” despite the country’s economic advantages. The coverage attributes the slowdown to weak productivity growth, which limits the economy’s ability to generate sustained improvements in living standards and competitiveness. The reports also point to restrictive or stifling business conditions as a contributing factor, arguing that these conditions make it harder for firms to invest, innovate and expand. While the articles do not identify a single cause beyond these themes, they consistently frame the issue as a policy and structural challenge rather than a short-term cyclical problem. The accounts converge on the central message that Australia is not fully capitalising on its natural and economic strengths, largely because productivity is not improving fast enough and the operating environment for businesses remains too constrained. The reports present the think tank’s assessment as a broader warning about long-term economic performance rather than a specific announcement of immediate changes or targets.