Why Australian manufacturing has no future

Wednesday 18 June 2025

Australia’s manufacturing sector hit a record low share of GDP in the latest Australian Bureau of Statistics (ABS) national accounts.

In Q1 2025, the manufacturing share of GDP fell to just 5.1%, down from 8.9% two decades ago and from 15% in the mid-1970s.

Australia’s manufacturing share is also the smallest in the OECD, making us one of the least self-sufficient economies in the developed world.

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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.