The Australian Bureau of Statistics (ABS) experimental estimates of multifactor productivity (which incorporate both labour productivity and use of capital) show that over the five years to the end of June 2009 annual productivity growth for the finance and insurance industry averaged 1.7% per year.  This compares with the average annual market sector productivity growth which has fallen by 1.2% per year over the same period.

Drivers of productivity growth for banks include competition and adoption of technology.

For the past three years, ending June 2009, the average annual productivity growth for the finance and insurance industry has been 2.1% compared to a fall of 1.3% for the overall market sector.

Over the past three years, the finance and insurance industry has had the highest average productivity growth per year of the industries listed.

Updated February 2011