Don’t the media just love bad news!? We’ve all seen footage on the news over the past week showing people on Wall Street being concerned about the dramatic drop in the Dow Jones. But there’s so much countervailing news which shows us that Australia’s economic outlook is looking pretty good.
Australian Retailers Association Executive Director Russell Zimmerman said this week that “… we are hopeful that the improving economy will spur growth for retailers across the country in 2018.” The ANZ-Roy Morgan consumer confidence index provides support for this view, rising another 1.5%, to its highest level in over 7 years! David Plank of the ANZ said that there have been sustained improvements in views towards Australia’s economic outlook. “This likely reflects strength in the domestic labour market as well as a global synchronised pickup in activity.”
Earlier this week the Reserve Bank held interest rates at 1.5% cash rate at its first board meeting of the year. The Reserve Bank Governor, Philip Lowe, said that the central bank expects a pickup in growth over the next few years. The low interest rates continue to support the Australian economy. Forward indicators of employment point towards solid jobs growth and gradual reductions in unemployment. Even wages should grow over time. Economic growth is expected to pick up to an average slightly above 3% over the next couple of years.
According to the Australian Property Institute, drivers for growth at the moment include low interest rates, robust global growth, strong jobs growth, strong population growth and increased infrastructure investment. With Melbourne’s population growing by about 2000 people per week, this presents great opportunities for existing business owners.