What doesn’t kill us makes us stronger

Having worked through the five stages of grief many Australian companies are now getting on with life under a high dollar. Some manufacturers are even thriving, and showing the rest of the country the way forward.

Just quietly, Australia’s productivity performance has improved dramatically. A year ago there was a procession of stern speeches on the subject, exhorting the nation to do more and the government to do less (regulation etc), and it turned out that 2012 saw the biggest improvement in productivity in more than a decade.

It seems to be largely due to the high Australian dollar, which has now been above parity for two years. This week is the second anniversary of its decisive break above parity, near the end of a 70 per cent revaluation from March 2009 to April 2011.



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