The world has become more fragmented and unpredictable, accelerating trends in populism and geopolitical tensions. This fragmentation has reshaped economic policymaking globally.

This paper highlights five economic themes emerging from the shifting global order and likely to shape Australia's policy debate in the coming years. It aims to assist policymakers as they adapt to the new global order and tackle domestic pressures by framing the big policy challenges and identifying where policy needs to adapt.

1. Negotiating a new global order: leveraging Australia's comparative advantages, building flexibility in the domestic economy and pushing back against a closed world.
2. Re-examining a high population growth model: if immigration is to moderate, policymakers need to rethink how to manage domestic challenges like an ageing population and skill shortages.
3. Boosting productivity growth: addressing the drivers of Australia's recent productivity slowdown to help address growing fiscal pressures
4. Restoring fiscal sustainability: balancing the budget and reducing debt to help Australia weather global shocks and respond to emerging priorities
5. Achieving a sustainable intergenerational bargain: addressing housing affordability and fiscal pressures to reduce the risk of breaking the compact between generations.