Speaking at an event in Sydney, KPMG Australia chairman Peter Nash said the Brexit vote, the US election, and events in the Middle East are all manifestations of geopolitical uncertainty.
“Volatility in a geopolitical sense is really here to stay. We’re not going to wake up one day in the near future to a sky of bright sunshine,” said Mr Nash.
“It’s going to be really challenging in a geopolitical sense for some time to come.”
Mr Nash said the UK is one of the worst places to be from an economic sense while it remains uncertain what’s going to happen.
He warned that Australia could also face economic challenges if it fails to focus on reform and reshaping the economy in light of geopolitical challenges, which may be difficult following the election result.
“There will be a long-term slower growth rate around the world. I think that is evident across all of the major developed countries and the slowdown is being experienced in the developing countries as well,” said Mr Nash.
“In a global economy that is going to continue to travel slower, that will no doubt have economic victims or economic fallout. So if you’re not keeping your economy and market as agile and nimble as possible in that environment, than there’s a very high risk that you will not get to participate in the modest growth that is occurring.”