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.


Australian interest rates
ANZ Economist Predicts Aussie Interest Rate Rise
For a while now, I’ve been convinced the Reserve Bank of Australia (RBA) wouldn’t increase interest rates any time soon. My reasoning is based on low income growth, households drowning in debt, and inflation showing little sign of hitting targets of 2–3%.
tourism boom
The Tourism Boom No One Is Talking About
Australia is going through a tourist boom, yet you’d be hard-pressed to find anyone talking about it. Many of the big cap stocks are slugging it out to ratchet up minimal growth. However, there are other less well-known companies that have been investing to capture this growth in international tourists.
amazon online
Why Australia Has Misjudged Amazon
Amazon isn’t coming to sink Aussie retail. Consumers have already done a decent enough job of that themselves. Amazon’s arrival in Australia could be more to do with growing an integral part of the company’s business that people often overlook.
Australian interest rates
Profiting in a Low Interest Rate Environment
RBA released the minutes of their 5 September Monetary Policy Meeting. Various members of the RBA discussed topics ranging from employment to wage growth and housing activity, and what these could mean for interest rates going forward.
water tank house
How Water Trading Boosts Aussie House Prices
The water trading plan calls for each apartment to have a quota of free rainwater from the communal tank. The unused part of the quota could be traded to other residents for a reduced water bill. More people, higher density, innovation and new technology…and up goes the land price.
manipulating data
Australia’s Economy – The Twisted Tale
The problem is that central bankers favour official statistics. When you tweak and manipulate data to suit your agenda, the government has a much rosier outlook. One Aussie central banker likened the Aussie economy to an underperforming high school student, saying Australia is operating ‘below its potential’.
Global economy
The Global Economy Must Change its Ways
We know that change is the only constant in our lives. Yet, paradoxically, most people act as if tomorrow will be a repeat of today, expecting nothing to change. There’s a broad belief that growth is a constant. Growth in population. Growth in living standards. Growth in wages.
Australian recession
What to Buy In Times of War
Hedging your portfolio against political risks is one thing. Hedging against nuclear war is a completely different ball game. If things ramp up between the US and North Korea, what will be the safe haven? Real estate? Bonds?
boost savings
The Future Fund – A New Way to Boost Your Superannuation
What few people realise is that the Future Fund is actually the best performing Super Fund in Australia, returning 7.8% per annum since 2007. That’s well above the best returning funds in Australia. None of which have cracked above the 6% mark in the same time frame.