Invest
Five reasons not to be gloomy about the economy
With last week’s news that the Australian economy grew at a healthy three per cent throughout 2015, one of Australia’s leading economists has offered up five reasons for investors to be optimistic.
Five reasons not to be gloomy about the economy
With last week’s news that the Australian economy grew at a healthy three per cent throughout 2015, one of Australia’s leading economists has offered up five reasons for investors to be optimistic.
Writing in his weekly Oliver's Insights newsletter, AMP Capital chief economist Shane Oliver noted that the Australian economy grew at a "surprisingly strong" three per cent throughout 2015.
Non-mining activity and export volumes help offset the slump in mining investment, said Mr Oliver.
But Australian GDP growth is likely to fall back to 2.5 per cent in 2016, making a further RBA cut to interest rates likely, he said.
Nevertheless, there are at least five reasons "not to be gloomy", Mr Oliver said.
First, consumer spending is growing at 2.9 per cent supported by generational-low borrowing rates and falling petrol prices, he explained.
Second, the fall in the Australian dollar is a "big positive" for manufacturing, tourism, higher education, services, farming and mining, Mr Oliver said.
"Third, Australia managed the boom better than it has in the past when booms led to inflation or trade deficit blow-outs or both and all sectors of the economy boomed together and went bust together," he said.
"This time there was no major build-up of imbalances in the economy and sectors suppressed by the mining boom have bounced back."
Fourth, annual growth 'state final demand' in the population-rich states of NSW and Victoria is 3.3 per cent and 4.6 per cent, respectively – compared to Western Australia (-4.7 per cent) and the Northern Territory (-17.7 per cent).
"Finally, by mid-next year, mining investment as a share of GDP will have fallen to around two per cent from its boom time peak of near seven per cent, meaning that the mining investment boom and its drag on growth will largely be behind us," Mr Oliver said.
Property
More Aussies ‘in tears’ during house-hunting
New research has found that 9 out of 10 Australians find the process of house-hunting more frustrating than exciting, revealing the search for “the one” is filled with frustration, stress and tear...Read more
Property
Property hotspots for young Aussies revealed
New research from Westpac revealed that the number of first home buyers looking to enter the market has more than doubled since 2019, proving that COVID-19 continues to shape Australian home ownership...Read more
Property
Aussies swap housemates for home ownership
The number of younger Australians looking to enter the property market in the next five years has doubled, as COVID-19 restrictions sees home ownership goals increase, according to research released ...Read more
Property
Falling loan deferrals prove market recovery: REIA
The reduction in loan deferral defies doom and gloom forecasts in the property market, the Real Estate Industry of Australia has said. ...Read more
Property
Why are expats returning to property market?
Expats are returning to Australia in droves, eager to put their money into safe investments. ...Read more
Property
Stamp duty to be phased out under new proposal
The NSW government has stated that it could phase out inefficient taxes such as stamp duty as it looks to recover from the COVID-19 pandemic. ...Read more
Property
Melbourne rents continue to decline
While most capital cities recorded increases in asking rents, Melbourne continued to see declines in both houses and units, according to latest data from SQM Research. ...Read more
Property
Why investors should focus on the next 1-5 years
Investors are being urged to look beyond their own backyards into opportunities over the next one to five years. ...Read more
Property
More Aussies ‘in tears’ during house-hunting
New research has found that 9 out of 10 Australians find the process of house-hunting more frustrating than exciting, revealing the search for “the one” is filled with frustration, stress and tear...Read more
Property
Property hotspots for young Aussies revealed
New research from Westpac revealed that the number of first home buyers looking to enter the market has more than doubled since 2019, proving that COVID-19 continues to shape Australian home ownership...Read more
Property
Aussies swap housemates for home ownership
The number of younger Australians looking to enter the property market in the next five years has doubled, as COVID-19 restrictions sees home ownership goals increase, according to research released ...Read more
Property
Falling loan deferrals prove market recovery: REIA
The reduction in loan deferral defies doom and gloom forecasts in the property market, the Real Estate Industry of Australia has said. ...Read more
Property
Why are expats returning to property market?
Expats are returning to Australia in droves, eager to put their money into safe investments. ...Read more
Property
Stamp duty to be phased out under new proposal
The NSW government has stated that it could phase out inefficient taxes such as stamp duty as it looks to recover from the COVID-19 pandemic. ...Read more
Property
Melbourne rents continue to decline
While most capital cities recorded increases in asking rents, Melbourne continued to see declines in both houses and units, according to latest data from SQM Research. ...Read more
Property
Why investors should focus on the next 1-5 years
Investors are being urged to look beyond their own backyards into opportunities over the next one to five years. ...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
