Abstract

The comprehensive reforms initiated in the mid-1980s, and accelerated in the 1990s, are expected to bring significant gains to the Australian economy over the medium term. Empirical studies have estimated the benefits of the various reforms to be in the range of 5–10 percent of GDP, if fully implemented (see Box 8.1). Dividends from the reforms are already apparent. Australia is currently experiencing a sustained economic expansion with per capita real GDP growth having averaged 2¾ percent since 1992. The strong growth performance gives rise to two main questions. Have productivity growth and potential growth accelerated compared with the past? What is the medium.-term outlook for potential growth?