Australian Economy

The Australian economy set a world record in March 2017. Recession free for nearly 26 years. Around the same time, Australian households also established a record…the most indebted in the world.

The Australian economy was a major beneficiary of China’s decades long economic transformation. Chinese demand for resources led to a mining boom that peaked in mid-2012.

When the mining boom collapsed, the Australian economy was thrown a lifeline by the RBA…in the form of ever lower interest rates. Australians were encouraged to borrow to keep GDP growth positive.

While this has worked to an extent, it’s also lead to Sydney and Melbourne property markets becoming amongst the most expensive in the world.

Australian Economy News, as it comes

In Markets & Money we work to connect the dots on the Australian economy to give you a clear picture. And part of that picture is connecting record economic growth with record debt, and record home prices.

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Winning Streaks Always End

Our economic winning streak is in record breaking territory. The last recorded recession in The Lucky Country ended in June 1991. But that’s not how life should work.

Fantasy Island

Fantasy Island is a paradise in the Pacific Ocean. The island’s GDP output is $500k. There is no debt. One day, a fellow calling himself Charles arrived on the shores of Fantasy Island.

Is the Aussie Economy Faking It?

You may have noticed that things have been pretty good lately. The economy is booming. Unemployment is down. And market sentiment is, generally, pretty cheerful. Overall, Australia has been a place of sunshine and financial…

Crises Leave Their Scars

Having had so many years without a crisis has meant that Australia is one of the few countries in the world still able to offer a range of opportunities. But, there are worrying signs.

Expect Things to Change

You would be surprised how many people invest based on recent past performance, projecting the present into the future. Economists even have a name for it: extrapolation bias.

Move in Now, Pay Later

This ‘Afterpay for real estate’ scheme is the latest initiative from sellers to try and breathe life into a deflating property market. Lenders and developers are getting creative with incentives as the property market slows…

Markets and Money