Grattan on Friday: economic life won’t get much better until Australians climb that productivity mountain

Treasurer Jim Chalmers would have sighed with relief at this week’s economic growth figures.

Despite some preview talk of possible stagnation, we saw modest growth of 2.1% in the year to the end of June.

But every economic number these days seems to bring a negative.

Economists immediately strengthened their predictions of another interest rate rise.

For the average Australian, just where we are economically is at best confusing, at worst alarming.

For years, people have been under cost-of-living pressure.

Real wages fell by more than 5% over the five years from 2021.

This year’s extended Middle East conflict has added to the strains.

The housing market is disoriented after the budget’s tax changes.

In this week’s Essential poll, nearly six in ten people think the country is headed in the wrong direction.

The government tries to empathise with people’s circumstances while claiming it’s pulling the right levers, an assertion strongly contested by the opposition which, in particular, flails high government spending.

The public no longer trusts the messaging from either side.

Many frustrated voters are combining their economic and political grievances into support for One Nation.

In light of the often baffling picture, this column asked two independent economists, Chris Richardson and Saul Eslake, for their snapshots of our economic health – or lack of it.