Private sector-led recovery in doubt as companies hold back investment
The OECD has urged the federal and state governments to repair their budgets, as new data shows record growth in welfare spending while business investment languishes near a four-decade low, highlighting Treasurer Jim Chalmers' challenge to spur a private sector-led economic recovery.
In its latest economic outlook, the Paris-based Organisation for Economic Co-operation found that business investment was 30 per cent weaker than what it should be in Australia, based on economic conditions. The outcome was the third-worst investment gap across the rich world and the OECD suggested that uncertainty could be hampering spending.
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