Economy

Key points

• 2019 saw growth slow, recession fears increase and the US trade wars ramp up, but solid investment returns as monetary policy eased, bond yields fell and demand for unlisted assets remained strong.

The Reserve Bank of Australia (RBA) took the cash rate to a record low of 1% in July, bringing mortgage rates to their lowest level in more than half a century.

Almost $20 billion spent on gifts each year, Australia is a generous nation.

Key points

• Australian growth is likely to remain weak over the next year. Expect further monetary & fiscal stimulus.

triggering (another) correction in share markets

Key points

• The trade war between the US and China is escalating, posing a rising threat to global growth.
• Although we remain of the view that a deal will be reached, the risk has increased.

Happy end of financial year! Bill Bracey of Sydney Financial Planning provides an economic update for the new financial year (July 2019).

The 2019-20 Federal Budget promise...

This evening the government has stuck to its plan for building a stronger Australian economy, headlined by announcing a $7.1 Billion surplus next financial year. Below is a link to our practical summary of the pre-election budget

Key points

• Australian growth slowed even more in the December quarter. Growth may bounce back a bit this year, but the housing downturn will likely constrain it to around 2- 2.5%.
• As a result, unemployment is likely to drift up and wages growth and inflation remain lower for longer.