TTRP21-02 Projecting Long Run Productivity Growth Rates for the 2021 NSW Intergenerational Report

This paper evaluates the appropriateness of the current long run labour productivity growth assumption ahead of the next NSW Intergenerational Report (IGR), to be released in 2021. It examines methodologies used by other leading Treasuries and financial institutions for projecting productivity growth, and reviews trends and factors that may influence the future growth path. The proposed methodology and projections contained in this paper are preliminary and will be finalised for the 2021 IGR.