The Australian Industry Group Business prospects in 2013: Australia’s gap year? februAry 2013

national CEo survEy:

Principal contact person for this report: Julie Toth Chief Economist THE AUSTRALIAN INDUSTRY GROUP Direct Tel: (03) 9867 0124 Julie.Toth@aigroup.asn.au

This report was produced with financial support from the Government of Australia’s Productivity, Education and Training (PET) Fund.

© THE AUSTRALIAN INDUSTRY GROUP, 2013 The copyright in this work is owned by the publisher, The Australian Industry Group, 51 Walker Street, North Sydney NSW 2060. All rights reserved. No part of this work covered by copyright may be reproduced or copied in any form or by any means (graphic, electronic or mechanical) without the written permission of the publisher. ISBN 978-1-921768-44-6

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Ai Group National CEO Survey 2013

Business prospects in 2013

Australian Industry Group

National CEO Survey
Business prospects in 2013: Australia's gap year?

Ai Group National CEO Survey 2013

Business prospects in 2013

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Key messages
Business prospects in 2013: Australia's gap year?
The Australian economy is going through significant change, with multiple, long-term forces restructuring our economy (such as global growth shifts and our own demographic changes), and ongoing challenges in our immediate outlook (such as the high Australian dollar and our relatively high business cost base). Recent drivers of growth are waning, with capital investment by the mining industry due to peak soon and federal and state government investment already past its post-GFC peak. But other potential growth drivers – most notably commercial and residential investment – are yet to show signs of a meaningful pickup. The global outlook also remains challenging, with only Asia generating any real growth in demand. As a result, in 2013, we are likely to see a gap in Australia’s economic momentum.