Australian manufacturing is dying and nobody cares

Tuesday 5 August 2025

The latest Australian Bureau of Statistics (ABS) national accounts showed that Australia’s manufacturing sector comprised a record low share of GDP.

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

Australia has the smallest manufacturing share in the OECD, making it one of the least self-sufficient industrialised economies.

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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.