While we don’t have a crystal ball here at Shore Financial, we do have the economic outlook from the Australian Treasury. Here’s some key predictions of what the government is anticipating for the coming year:

  • The Australian economy is forecast to grow by 2.5% in 2016-17 and by 3% in 2017-18
  • Investment in housing is expected to remain high, although with a slower rate of growth
  • Employment growth anticipated to remain solid, with the unemployment rate forecast to fall to 5.5% in the June quarter of 2017, from 5.75% in the June quarter of 2016
  • Nominal GDP growth forecast to increase to 4.25% in 2016-17 and 5% in 2017-18

The Treasury warns that the global economy does present risks for domestic growth from both advanced and emerging economies. Of particular significance is China as it transitions to a more consumer-driven growth model. Yet as demand for Australian commodities declines in China, there is the potential for an increased demand for Australian services.

Also of note is the unexpected political turmoil of 2016. The impact on financial markets of the Brexit and US election results will continue to unfold during 2017. Whatever may come, we’ll continue to monitor the economic climate to ensure we are providing our clients with the best possible financial advice and loan products for your individual circumstances.