On Friday the 16th of November, we held our annual Sharp & Carter CFO Networking Lunch for 2018.
On the day we were lucky enough to have esteemed economic commentator Saul Eslake presenting his outlook on the Australian Economy.
Saul gave an insightful and wide ranging address with some key themes including:
A convergence of what was previously described as a “two speed economy” with the slowing down of the mining boom in the resource rich states
Our economic growth story owes a lot to sustained high immigration which needs to be carefully planned for in terms of infrastructure and provision of essential services
Consumption and household spending remain strong but could be under threat from the “wealth effect” of declining house prices
Employment growth has been strong and can be expected to remain so into next year but concentrated in a few key sectors including technology, construction, manufacturing and healthcare
Our home ownership is no longer high by our own historical or international standards, although easing demand from investors will likely see more first time buyers coming into the market
The RBA is unlikely to be in any hurry to raise interest rates as a weaker exchange rate would likely assist the trade exposed areas of the economy
For Saul, the key risks to the Australian economy are:
Rising US interest rates
A “hard landing” in China
A prolonged or widespread trade war
A sharp reduction in our immigration intake
An abrupt and/or large decline in residential property prices
Ongoing political instability
Of course, time will tell, however if you’d like to learn more please do contact us on email@example.com for a copy of Saul’s full presentation, and let us know if you would like to come to our next CFO event!