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Commission investigates industry growth trend

The Productivity Commission has launched an investigation into weak growth in the financial and insurance sector in recent years.

Researchers will question the industry on trends and developments affecting growth before publishing their findings in February.

Special Adviser Shiji Zhao says the sector has grown strongly in the past few decades and has probably overtaken mining in terms of its contribution to the economy.

But the rate of increase in multifactor productivity – or output from labour and capital – slowed between 2007/08 and 2011/12, before picking up again.

Dr Zhao told insuranceNEWS.com.au this may not be due to the global financial crisis and the commission wants to better understand the forces behind it.