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Event highlights: Moir Group Discussion with Paul Bloxham ‘The local & global economy: Upswing to the new normal’

 

At our latest webinar event we were joined by leading economist, Paul Bloxham to discuss Australia’s economic recovery in the global context and as the world begins to adapt to the new normal.

This enlightening discussion comes a year after a previous discussion with Paul about how COVID will affect the overall Australian economy moving forward.

Below are some of the key highlights that were discussed.

Reflection On The Last 12 Months 

  • The Australian economic recovery is strong, with the GDP having dropped less than originally anticipated and the economy is currently rising to expected forecasts.
  • The Australian response to COVID19 has helped our economy due to liberal government spending programs and support. Jobkeeper especially helped to pull the economy out of a “deep freeze”.
  • People are spending what they saved during shutdowns, helping boost the economy.
  • However, the re-opening of the international borders will be hard due to the population’s low tolerance of cases which brings into question how we can sustain this economic recovery moving forward.

Current Global and Local Economic Recovery 

  • Vaccinations are key to the current global economic recovery; we are seeing a rebound – especially in the West – however the overall vaccine rollout is “bumpy and uneven”.
  • Asia will likely see a slower economy in comparison to 2020 due to a lack of vaccinations and a decrease in manufacturing and goods purchases as consumers in the west switch back to spending on services.
  • The US and China are the only countries who have returned to their pre-pandemic economic pathway, all other countries, including Australia, now are on a more modest economic trajectory.
  • Australian met migration is not likely to get to pre-pandemic levels until 2023, which will result in a loss of population growth that is needed to underpin economic growth.
  • Although the Australian economic recovery is rebounding, it will begin to slow over the next three to four quarters. However, this will not be a recession, or a sharp downturn.

Looking To The Future 

  • There is some cause for concern as Australia is not harnessing the opportunity that the pandemic presents.
  • We should be creating economic reform and harnessing renewable energy to export.
  • There are notable examples where businesses and state governments are stepping up to seize opportunities.
  • The global economy will continue to be dictated by the virus and the vaccine rollout for at least another year.
  • Global debt is the highest it has ever been, and Australian debt has essentially doubled.
  • Businesses should stay nimble as their ability to adapt to new opportunities, like increased digitalisation, will help them be more efficient and grow productivity.

At Moir Group, our core belief is that a satisfying job leads to a fulfilling life. Our series of expert-led events throughout the year, are 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.

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