“The strength of the economic headwinds reveals a grim outlook for the Australian economy and must act as a wakeup call. While exposing existing vulnerabilities, these challenges represent an enormous opportunity for government to make bold, productivity-enhancing policy commitments.

“The IMF’s latest global growth forecasts have shown that the Australian economy has proven to be remarkably resilient when compared to the bleaker prospects faced by many other developed countries.

“Economic forecasts released today come as businesses grapple with prolonged supply chain disruptions caused by the pandemic and fallout from Russia’s invasion of Ukraine, dire labour shortages, and rapidly tightening financial conditions as the RBA seeks to contain runaway prices.

“With inflation expected to continue climbing, higher interest rates to restore price stability, and more pessimistic growth forecasts, there is a clear risk of severe economic pain for businesses and for households.

“The upcoming jobs and skills summit must be a catalyst for a bold agenda for workforce reskilling, migration, and bargaining reforms.

“Now is the time for government to take on a revitalised and ambitious agenda for reform. While we must not underestimate the challenges of building consensus, business is ready to play its part.