Australian economy gets dumber and dumberer

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Deloitte Access Economics has released a report entitled Australia remade: a country fit for the age of disruption, which claims that Australia is “not as successful an economy as we think we are” and lacks sophistication:

[The] Deloitte Economic Sophistication Index ranks countries and their economies based on two measures: the value added to the goods and services an economy currently produces; and how well connected the industries that make these products and services are in global supply chains.

Countries that rank high on the Sophistication Index – and Germany sits on top – are those that perform well across both value added and connectedness. Ranked 37th on the other hand, Australia‘s prosperity has come at the cost of investing in and enhancing the productive and adaptable capabilities in its economy.

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.