AUSTRALIA’S ECONOMIC OUTLOOK
Whether you’re looking to do business or find employment in Australia, it’s important to have an understanding of the nation’s economic future. This post gives a brief account of Australia’s current economic standing and a look at what’s to come.
While Europe and the USA continue to struggle with the fallout from the GFC, Australia’s adept handling of the 2008 crisis has left the nation in relatively good economic stead.
As a result, 2018 has seen Australia enter into its 27th year of uninterrupted economic growth—an enviable achievement, considering the recessions experienced by many countries in recent years.
What’s more, in late 2017 Australia was ranked as the world’s 2nd wealthiest nation in terms of wealth per adult.
It’s clear that Australia current economic standing is strong, but what can we expect over the coming years?
What the future holds
- Australia’s economy is set to grow at a rate of about 3.25% each year in 2018 and 2019, improving upon the current rate of around 2.75%.
- Growth is forecast to continue into June 2020, albeit at the slightly slower rate of 3%.
- Continued GDP growth reflects an upturn in the global economy—economies in the U.S., Europe and Japan are doing much better than in previous years—and a rise in mining investment.
- As of June 2018, the unemployment rate stands at 5.5%.
- It is expected to fall to about 5.25% in 2019 and remain at that level into 2020.
- The projected decline in unemployment figures can be attributed to older workers remaining in the workforce longer, and an increase in women finding employment.
- Inflation is predicted to grow to about 2.25% by December 2018 and remain stable into June 2020.
Globally, uncertainties revolve around trade policy and China’s slowing growth. Protectionist trade measures, such as those imposed in the U.S., have the potential to disrupt the current state of growth the word economy is experiencing. Furthermore, the slowdown of growth across industries in China, Australia’s biggest trading partner, has also been cause for uncertainty.
Domestically, the relatively high amount of household mortgage debt has led to some level of uncertainty; however, steps have been taken by regulators to mitigate some of these risks.
Despite the uncertainties mentioned above, Australia’s economy remains one of the strongest in the world and is set to continue down a path of economic prosperity and stability.
Boasting a AAA credit rating and a top #6 spot in a list of the best countries to invest in globally, business opportunities in Australia abound—a 2018 report from StartupAUS summed up Australia’s entrepreneurial potential as follows:
“Startups in Australia are booming. Capital availability is at record highs . . . and governments around the country are increasing support for young high-growth businesses and the organisations that help them grow. Coworking spaces in major cities are overflowing, requiring rapid expansion to accommodate increased demand by entrepreneurs. A number of Australian ecosystems have begun to attract the attention of prestigious international events and programs, including TechCrunch Battlefield, Techstars, 500 Startups, MassChallenge, and Launch Festival. Prominent international investors are increasingly investing in Australian businesses.”
Ready to realise your entrepreneurial/career dreams in Australia?
Check out some of our other posts for more valuable information:
- How to find a job in Australia? – The Australian job market
- Startup in Australia – Advice from 3 successful founders
- Legal information for foreign business in Australia
- Key industries in Australia
All data, unless otherwise cited, is from the RBA.