2 September 2020

Australia’s dive into recession means we must roll-out a new growth plan for the next decade

 

SYDNEY: The release today of latest economic data confirming that Australia is now officially in a COVID-19 induced economic recession should serve as an important catalyst to roll-out a comprehensive growth plan to turn things around in the coming months and years, according to the Australian Investment Council.

“As we rebound out of the COVID-19 downturn, we must ensure that the economic recovery is underwritten by big gains in innovation and technology to drive increased productivity. To make that happen, we have to boost our global competitive standing and attract new domestic and offshore investment capital to our market,” said Yasser El-Ansary, Chief Executive of the Australian Investment Council.

“The Federal Government must continue to work with all States and Territories through the National Cabinet to support the business sector in regaining the economic momentum that has been lost through the impact of the global pandemic. Now is the right time for all jurisdictions to work together to rebuild Australia’s strong economic foundations.

“There is hard work that needs to be done in areas such as taxation reform, market deregulation and red tape, industrial relations, as well as innovation and technology, and infrastructure investment.

“Our members tell us every day that their businesses stand ready to do the heavy lifting on creating new economic activity and new jobs, but key policy frameworks across the economy must be strengthened in order to unlock the unique ‘first-mover’ opportunity that Australia has in its grips right now.

“COVID-19 lockdowns have demonstrated the importance of investment in technology that enables Australian businesses to innovate and lift their productivity through digital go-to-market channels across every sector of the market. We have to double-down our investment in technology now, and recognise that technology will play a critically important role in our economic recovery over the months and years ahead,” said Mr El-Ansary.

He added that a stronger technology capability would represent a significant new building block in designing a future-proof Australia that generates sustainable economic and incomes growth for all, and positions our market with a competitive edge against other developed economies around the world.

In June 2020 the Australian Investment Council released a comprehensive plan outlining the views of private capital investment leaders about the priority policy reforms necessary to guide the economy back to growth. Roadmap to Recovery – Creating a Stronger and More Dynamic Economy sets out priorities which span a mixture of short-term and longer-term reforms that will underwrite the next wave of economic growth.

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For an interview with Yasser El-Ansary please contact:

Robyn Tolhurst
Public Affairs Manager
robyn.tolhurst@aic.co
M: 0436 388 919

About the Australian Investment Council

The Australian Investment Council is the voice of private capital in Australia. Private capital investment has played a central role in the growth and expansion of thousands of businesses, which when combined represents a multi-billion-dollar contribution to the Australian economy. Our members are the standard-bearers of professional investment and include: private equity, venture capital and private credit funds, alongside institutional investors such as superannuation and sovereign wealth funds, as well as leading financial, legal and operational advisers.

www.aic.co www.twitter.com/Ai_council