We recently facilitated an event with Shane Oliver. “How durable is the economic recovery and how to navigate it”.
Below are some of our key highlights from this event.
Covid 19 impacts
Negatives
- Bigger government/more public debt
- Risk of higher inflation long term with money printing (Risk of reaching 1940’s levels?)
- Impact on airlines, retail (more online) and office demand (work from home)
- Lower immigration and further blow to globalisation
Some Positives
- Interest rates remain low
- Faster embrace of technology = increased productivity (e.g., less business travel, more online learning), innovation and transformation
Economic and Investment Outlook 12 months
- Expect further economic recovery in 2021 – with stimulus, vaccines and reopening
- Headline inflation to rise due to base effects, higher commodity prices and goods supply bottlenecks
- Global monetary and fiscal stimulus to remain large, but gradually start to slow
- RBA cash rate-expect tapering later this year, first rate rise in 2023
- Shares at risk of a mid-year correction – inflation fears, coronavirus scare, China tensions – but likely to provide good returns in next 6-12 months
- Watch: coronavirus + vaccines, unemployment & underemployment, inflation, purchasing (in particular services which are still down), tensions with China
Budget 2021/22
Mostly Winners
- Aged care and disability, Older super members
- Parents and Pre-schoolers,
- Businesses, Women
- First, new home and single parent home buyers
- Construction and building material companies
- Low and middle income earners
At Moir Group, our core belief is that a satisfying job leads to a fulfilling life. We will be running a series of expert-led events and publishing articles across the year, all designed to help you to navigate the jobs market in these challenging times. Find out more on our Learning and Events hub.
If you have any accounting or finance recruitment needs in your team, or you’re looking for a role yourself, we would be delighted to assist. We cover all roles, permanent and temporary, from Assistant Accountant to CFO.
Please do not hesitate to get in touch on (02) 9262 4836 or email us here.