Global markets volatility ‘here to stay’

The recent geopolitical volatility is set to continue in the longer term, with global growth also expected to see a slowdown, according to one of Australia’s big four accounting and advisory firms.

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.”

Promoted Content
Recommended by Spike Native Network
MORE FROM NEST EGG
Australian economy, interest rates, Reserve Bank of Australia, Guy Debelle, RBA, Australian interest rate, Australian Dollar, AMP Capital, Shane Oliver, US Federal Reserve, neutral rate of interest
Jul 24 2017
Where are Australian interest rates heading?
Recent remarks from the Reserve Bank of Australia have led some investors to believe a round of quar...
Investment management, wealth management, retirement savings, retirement planning, retirement management, investing for retirement, domestic equities, financial year, good returns,
Jul 24 2017
Three indicators of good returns for this financial year
Global market growth looks sustainable despite equity markets hitting all-time highs, according to a...
Treasury, open banking, open data, bank competition, bank customers, retirement planning, retirement management, retirement savings, wealth management
Jul 24 2017
Treasury looks at open data to improve bank competition
The Australian federal government has said it will investigate how an ‘open banking framework’ c...