News & Insights

Australia’s economic model has long depended on natural resource extraction, a stable financial system, and a growing population. But in the face of slowing productivity, global tech disruption, and rising economic complexity, this model is reaching its limits. To remain competitive and prosperous, Australia must transition to an economy powered by innovation, skills, capital depth, and global ambition.

After decades of benign borrowing conditions, the sustainability of government debt here in Australia, the United States and in Europe, has returned to the centre of economic debate. A world that grew accustomed to low interest rates and subdued inflation is now confronting a more difficult fiscal* landscape - marked by rising real interest rates, persistent inflation, and mounting structural government spending pressures. The fundamental question looms: when does government debt become too much? Cameron Harrison has undertaken a detailed analysis of sovereign debt sustainability, comparing the outlook for both Australia and the United States. This includes institutional perspectives, economic fundamentals, and stress scenarios, all framed within a shifting macroeconomic environment.