(7 September 2026 – Australia) NAB Group CEO Andrew Irvine believes Australia has strong foundations to thrive yet realising its potential will require a renewed focus on productivity, investment and long term economic reform.
Mr Irvine asserts that Australia should be optimistic about the longer term however the country is at risk of getting stuck in a low growth trap. Key areas needing attention include declining productivity, housing supply, energy costs, tax settings and red tape.
At the top of the list is productivity, as it is the engine that powers higher living standards. Without it, wages stagnate, economic growth slows and governments have fewer resources to invest in public services and infrastructure. Australia’s productivity performance has steadily deteriorated over several decades. The gap between Australia and leading economies is widening, with US productivity growth running at around twice Australia’s pace and Singapore’s more than three times higher.
“We have the resources the world needs, abundant energy, strong institutions, world-class businesses and talented people. And we have enormous opportunities to drive growth in energy, agriculture, infrastructure, technology and housing. The ingredients are there” Mr Irvine commented at the 2026 NAB Business Summit.
“Without urgent action, we’ll be locked in a slow lane sitting in the rear-view mirror as other advanced economies surge past us. Future prosperity depends on reforms that encourage investment, entrepreneurship and risk-taking, while housing supply, affordable energy, more efficient tax settings and reducing regulatory complexity were all identified as areas requiring greater urgency.”
“Business, regulators and unions all have a role to play if Australia is to avoid becoming trapped in a cycle of low growth and declining competitiveness. Australia’s challenge is not a lack of resources, talent or opportunity. It is a lack of urgency.”
ScotPac research highlights how mounting productivity challenges are weighing on Australia’s SME sector by driving up wages, and why urgent action is needed while CommBank reports leading Australian enterprises are achieving real productivity gains from upgrading old equipment, tech, and vehicles, with farmers and manufacturers leading a recent investment surge.