Australia faces worst decade for living standards growth since WWI
Australia is on track for its weakest decade of living standards growth since World War I, according to economic data. Former Reserve Bank governor Philip Lowe suggests that stagnant productivity and external economic shocks necessitate fundamental policy changes to boost investment.
Why it matters
The decline in living standards is fueling political instability and highlights the urgent need for structural economic reform in Australia.
Michael Read Deputy economics editor Jul 22, 2026 – 5.00am Australia is heading for its weakest decade of living standards growth in more than a century, fuelling support for One Nation and prompting former Reserve Bank governor Philip Lowe to warn that fundamental policy change is needed to encourage business investment.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in