CEO Update: We need greater economic dynamism

The past week delivered another dose of economic reality, with the March quarter GDP figures confirming what I have been hearing from many. The economy has slowed, growing by just 0.3 per cent in the quarter, and a modest 2 ½ per cent over the year.

Worryingly, both GDP per capita and productivity growth contracted in the quarter and the latter was a paltry 0.3 per cent over the past 12 months.

While household spending rose, discretionary spending was essentially flat, and these results capture only the first month of the Middle East war. While strong, private investment growth was again narrowly driven by data centres.

The results are yet another reminder of the need to reinvigorate economic dynamism in Australia. The Federal Budget contained commitments to deregulation that are important, consistent with CEDA recommendations, and long overdue. They need to be implemented quickly and effectively and should be seen as a down payment on a broader, and more ambitious, reform agenda.

The appetite for greater ambition is a common theme in my discussions with members.

Our CEO roundtable in Hobart last week, hosted in partnership with the University of Tasmania, was a case in point. Vice Chancellor Rufus Black led a direct, no-punches-pulled conversation with a senior group of members and stakeholders. There was real consensus on the need for bolder change to enable both a strong economy and to ensure that our social safety net remains appropriate for the challenges ahead. 

We look forward to taking those conversations further in Tasmania and more broadly.

While in Tasmania, I had the pleasure of hosting Premier Rockcliff for his fourth State of the State address. There was a great turnout and good energy in the room. I was pleased to hear the Premier reference CEDA's Modern Methods of Construction research as part of his decision to launch a modular housing finance guarantee.

We also kicked off our WSP Infrastructure productivity co-lab series in NSW, with the first focusing on energy and renewables infrastructure. With further co-labs in this series being rolled out across the country, insights from these discussions will directly shape our ongoing infrastructure productivity work with WSP.

On a different note, I’m delighted to welcome Kate West, Arup Chief Officer of APAC Business and Markets, to our Board of Directors. Based in Perth but working across Asia-Pacific, Kate brings deep expertise across key sectors including infrastructure, engineering, transport and investment. We’re delighted to have her join the team.

I’d also like to welcome new CEDA members CASWA, Go Foundation, Lucentis Advisory, and ReturnToWorkSA.

Coming up in our events calendar, we're welcoming South Australian Treasurer, the Hon. Tom Koutsantonis, to deliver his first State Budget Address tomorrow, 10 June. And on 23 June in Perth, we have an outstanding lineup of speakers, including the Hon. Paul Papalia and Michael Howell, First Assistant Secretary of the Federal Department of Defence, on Building the new Defence-Tech economy.

State of the Nation is less than three weeks away, in Canberra from 24 to 26 June. Tickets are selling fast - given everything happening in the domestic and global economy, the timing could not be more apt. I hope to see many of you there.

In closing, as many of you finalise your accounts for the year, we invite you to consider a tax-deductible donation to CEDA before 30 June. Your donations directly fund our programs across research, government and industry engagement, and convenings.