Australia’s manufacturing sector remains under pressure despite an apparent improvement in the nation’s standing on Harvard University’s Economic Complexity Index, according to the Advanced Manufacturing Growth Centre, which says the revised ranking reflects methodological changes rather than a material shift in industrial capability.
Newly recalibrated data from Harvard Kennedy School’s Growth Lab shows Australia’s ranking on the Economic Complexity Index has risen to about 74th out of 145 countries, from 105th previously.
However, AMGC said Harvard has made clear the movement is largely the result of changes in how the index is calculated, not a significant transformation in what Australia produces and exports.
Australia remains the second-lowest ranked OECD country on the index and sits 123rd globally for growth prospects, with projected growth of 1.2 per cent.
The index measures the diversity and complexity of a country’s exports, with higher scores generally linked to stronger long-term prosperity.
Harvard’s qualitative assessment of Australia remains unchanged, noting the economy is “less complex than expected for its income level” and has become less complex over the past decade. Resource and commodity exports continue to dominate, while mid-tier and value-added manufacturing activity remains limited.
AMGC managing director Dr Jens Goennemann said the updated ranking should not be misread as evidence of improved industrial strength.
“While Australia’s rise in the updated Harvard Economic Complexity Index may look positive, it reflects changes in methodology rather than a sudden shift in our industrial capability,” he said.
“What it does highlight is our country’s untapped potential and serves as a reminder that we must have policy settings that support complex manufacturing and invest in scaling our abundant small-to-medium sized manufacturers.”
Dr Goennemann said experience from AMGC-backed projects shows what targeted manufacturing support can achieve.
“Over the past decade, AMGC in partnership with local manufacturers has demonstrated that when Australian industry is supported to innovate and commercialise smart ideas, we can create high-quality jobs, grow exports and build competitive, value-added products,” he said.
AMGC said it has worked with more than 4,400 manufacturers nationwide and co-invested in more than 170 advanced manufacturing projects, contributing to job creation and increased revenue.
A link to the latest Harvard ECI rankings release can be found here: 2026 Harvard ECI Release
The full country profile for Australia can be found here: Australia ECI Profile
