Invest
No reason to fear recession, say economists
Australian investors shouldn’t be afraid of a recession in the near future as there’s “no risk” of a recession “while ever we remember the last one”, according to a global advisory firm.
No reason to fear recession, say economists
Australian investors shouldn’t be afraid of a recession in the near future as there’s “no risk” of a recession “while ever we remember the last one”, according to a global advisory firm.
Dr Frank Gelber, the chief economist at BIS Oxford Economics, said in the company’s Long-Term Forecasts 2017–2032 report that a fall in residential building will see gross domestic product (GDP) growth average at 2.6 per cent over the coming three years.
The agency pointed out that the figure is “only marginally better” than the five-year average of 2.4 per cent, however despite this slow growth there is “no risk of recession”.
“Some commentators are petrified of another financial crisis — forget that,” Mr Gelber said, together with senior economist at BIS Oxford Economics Richard Robinson.
“We will not have one while ever we remember the last one. Certainly, there will be cyclical swings with financial impacts. But investment markets are not out of control. We will have to wait a long time for the buoyant conditions that would cause another financial crisis.”
The economists said that “solid but unspectacular” household consumption, weak wage, employment growth and reduced savings ratios were examples of the “mainstays of growth” which “remain in place”.
“Low inflation, weak wages growth and a soft labour market means there will be no rate rises for the next two to three years,” Mr Robinson said.
“As US rates rise and narrow the rate differential, there will be downward pressure on the Australian dollar, offsetting the modest recovery in commodity prices over the medium term. We expect the dollar to fall back from current high levels and average around US 74 cents over the next four years.”
Property
10 markets reversing the property trend
Despite strong national growth grabbing headlines, not all suburbs are currently booming, with the pandemic continuing to drag down markets, an industry expert has revealed. ...Read more
Property
More than 1 in 3 home owners want to sell their property as seller confidence rebounds
More than one in three home owners are planning to sell their house over the next five years as Aussies increasingly look to purchase a new home to better meet their future needs, new research has ...Read more
Property
How big is the gender gap in housing?
It would take women an additional 10 months to save for a 20 per cent deposit on the median Australian dwelling value as at January 2021. ...Read more
Property
House price surge to cause ‘social and political problems’: ANZ
Rising house prices spurred on by low interest rates are “raising eyebrows” and could create “real social and political problems”, ANZ’s CEO has warned. ...Read more
Property
How important is a buyer’s agent in a rising market?
In a hotly contested seller’s market, investors are being alerted to the importance of a good buyer’s agent. ...Read more
Property
First home buyers guide: Grants and assistance in each state and territory
The federal and local governments have launched several grants and assistance programs to help their citizens achieve the great Australian dream of owning a home. ...Read more
Property
Transition period announced ahead of tenancy moratorium end
With the end of the moratorium on evictions in sight, the NSW government has announced a new measure aimed to assist the residential tenancy market transition back to pre-COVID conditions. ...Read more
Property
First home buyers brace for strengthening headwinds
While Australian first home buyers dominated the market in 2020, increasing their market share by 50.4 per cent in the past year, they're likely to face strengthening headwinds as prices soar. ...Read more
Property
10 markets reversing the property trend
Despite strong national growth grabbing headlines, not all suburbs are currently booming, with the pandemic continuing to drag down markets, an industry expert has revealed. ...Read more
Property
More than 1 in 3 home owners want to sell their property as seller confidence rebounds
More than one in three home owners are planning to sell their house over the next five years as Aussies increasingly look to purchase a new home to better meet their future needs, new research has ...Read more
Property
How big is the gender gap in housing?
It would take women an additional 10 months to save for a 20 per cent deposit on the median Australian dwelling value as at January 2021. ...Read more
Property
House price surge to cause ‘social and political problems’: ANZ
Rising house prices spurred on by low interest rates are “raising eyebrows” and could create “real social and political problems”, ANZ’s CEO has warned. ...Read more
Property
How important is a buyer’s agent in a rising market?
In a hotly contested seller’s market, investors are being alerted to the importance of a good buyer’s agent. ...Read more
Property
First home buyers guide: Grants and assistance in each state and territory
The federal and local governments have launched several grants and assistance programs to help their citizens achieve the great Australian dream of owning a home. ...Read more
Property
Transition period announced ahead of tenancy moratorium end
With the end of the moratorium on evictions in sight, the NSW government has announced a new measure aimed to assist the residential tenancy market transition back to pre-COVID conditions. ...Read more
Property
First home buyers brace for strengthening headwinds
While Australian first home buyers dominated the market in 2020, increasing their market share by 50.4 per cent in the past year, they're likely to face strengthening headwinds as prices soar. ...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
