Menu

Search

  |   Commentary

Menu

  |   Commentary

Search

Global economic growth likely to maintain recent pace, support Australian economy: St George Economics

The Australian economy has enjoyed 25-1/2 years of economic growth without a recession. It is an impressive achievement, with Australia having overtaken the Netherlands’ previous record for the longest stretch of economic growth. Nonetheless, the recent pace of economic growth has been lacklustre and the economy faces headwinds in the year ahead.  I

Increased production capacity for Australia’s key commodity exports has boosted export volumes in recent years. Australia’s trade position and incomes have benefited from strong commodity prices over the past year. High commodity prices were widely viewed as unsustainable and have now come off these highs.

Also, demographics play a key role in the longer term prospects for an economy. Despite economic growth travelling at a sub-par pace in recent years, the outlook for Australian economic growth is relatively positive, when taking into account demographic factors. According to the World Bank, Australia’s population grew by 1.4 percent in 2016, which is higher than many countries and will boost demand.

It compares favourably to some other major economies including India (1.1 percent), UK (0.8 percent), US (0.7 percent), China (0.5 percent) and Japan (-0.1 percent). Australia’s population is older than in some. Globally, there is a risk that recent improvements in economic conditions prove unsustainable. China’s economy still faces risks from its high level of indebtedness, including the risks inherent in the shadow banking system. China’s growth trajectory could face challenges in the medium term, as authorities attempt to divert growth from investment and manufacturing, towards consumers.

"Despite the potential risks to economic growth, we expect Australia’s economic growth to continue, although at a sub-par pace. Globally, the recent pickup in the pace of economic growth is expected to be maintained, providing support to Australia’s economy," St. George Economics commented in its latest research report.

Meanwhile, FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest

  • ET PRO
  • Market Data

Market-moving news and views, 24 hours a day >

2017-09-22 21:05:48
0m

September 22 14:30 UTC Released

USECRI Weekly Annualized*

Actual

0.0 %

Forecast

Previous

0.3 %

September 22 14:30 UTC Released

USECRI Weekly Index*

Actual

143.4 %

Forecast

Previous

143.3 %

September 25 00:30 UTC 25612561m

JPNikkei Mfg PMI

Actual

Forecast

Previous

52.2 bln $

September 25 08:00 UTC 30113011m

DEIfo Business Climate*

Actual

Forecast

116.0 %

Previous

115.9 %

September 25 08:00 UTC 30113011m

DEIfo Current Conditions*

Actual

Forecast

124.8 %

Previous

124.6 %

September 25 08:00 UTC 30113011m

DEIfo Expectations*

Actual

Forecast

107.9 %

Previous

107.9 %

September 25 11:30 UTC 32213221m

TRCapacity Utilisation*

Actual

Forecast

Previous

78.8 %

September 25 11:30 UTC 32213221m

TRManufacturing Confidence*

Actual

Forecast

Previous

110.7 %

September 25 12:30 UTC 32813281m

USNational Activity Index*

Actual

Forecast

Previous

-0.01 %

September 25 13:00 UTC 33113311m

MXIGAE Econ Activity YY

Actual

Forecast

Previous

2.4 %

Close

Welcome to EconoTimes

Sign up for daily updates for the most important
stories unfolding in the global economy.