1. The Australian economy will be shaped by five major forces: population ageing, expanded use of digital and data technology, climate change and the net zero transformation, rising demand for care and support services, and increased geopolitical risk and fragmentation.
2. Australia’s economy is projected to be two and a half times larger and real incomes around 50 percent higher by 2062–63.
However, the economy is expected to grow at a slower rate over the next 40 years compared to the past.
3. Australia’s population is projected to grow more slowly in the next 40 years, with an average growth rate of 1.1 percent per year.
The population is expected to reach 40.5 million in 2062–63, with an ageing population and a significant increase in the number of Australians aged 65 and over.
4. The overall participation rate in paid work is projected to decline gradually over the next 40 years as the population ages.
Average hours worked are also expected to decline slightly. However, efforts to broaden labor market opportunities can increase overall participation and contribute to a more inclusive workforce.
5. The composition of Australia’s economy is changing due to the ageing population, adoption of new technologies, net zero transformation, growing demand for care and support services, and geopolitical uncertainty.
These changes will lead to a services-based economy, digitalization of work, and potential opportunities in critical minerals exports.
Climate change will also have profound impacts on the economy and society, affecting where and how Australians choose to live and work.
The government is taking action to respond to these challenges and maximize opportunities from the global net zero transformation.