As the risk of recession looms over Australia’s economic outlook, Sky News business reporter Edward Boyd looks back to the 90s as well as forward to the latest data that is tipping the pendulum right now….(read more)
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Recession Risk Looms Over Australia’s Economy
Australia’s economy has been facing increasing uncertainty and volatility in recent months, with the risk of a recession becoming a growing concern. As the country confronts a range of challenges, including a global economic slowdown, declining consumer confidence, and political uncertainty, experts warn that Australia may not be able to maintain its long period of economic growth.
One of the major contributing factors to Australia’s economic vulnerability is its heavy reliance on the Chinese economy. China is Australia’s largest trading partner, and any slowdown in the Chinese economy will have significant repercussions on Australia’s export-reliant sectors, such as mining and agriculture. The ongoing trade war between the United States and China has further escalated concerns, as it creates uncertainty and dampens global demand for Australian products.
Another significant factor affecting Australia’s economy is the declining consumer confidence. High levels of household debt, stagnant wage growth, and rising living costs have left consumers with less disposable income, resulting in reduced spending. This, in turn, affects various industries, including retail, tourism, and hospitality, which heavily rely on domestic consumer demand. A downward spiral in these sectors can lead to job losses and further reduce consumer spending, potentially leading to a recession.
Political uncertainty is also a cause of concern for Australia’s economic outlook. A series of leadership spills and changes in government over the past decade have led to a lack of policy continuity and a lack of confidence in Australia’s political stability. This uncertainty has deterred investment, both domestic and foreign, which is crucial for economic growth. Without sufficient investment, businesses struggle to expand and create employment opportunities, further exacerbating the risk of recession.
The Reserve Bank of Australia (RBA), the country’s central bank, has responded to these challenges by lowering interest rates to historic lows. The RBA hopes that by reducing borrowing costs, it will encourage businesses and households to increase spending and stimulate economic growth. However, the effectiveness of monetary policy in boosting the economy is limited, and the RBA has limited room to maneuver with interest rates already close to zero.
To address these risks, Australia needs a comprehensive and coordinated approach from both the government and businesses. Policies aimed at boosting productivity, improving infrastructure, and reducing red tape for businesses can all contribute to enhancing economic resilience. Additionally, the government needs to provide targeted support and incentives for key industries that are particularly vulnerable to external shocks, such as manufacturing and agriculture.
As the global economic outlook remains uncertain, it is crucial for Australia to take proactive measures to mitigate the risk of recession. Diversifying trade partners, reducing dependence on a single market, and investing in sectors with long-term growth prospects can all contribute to building a more resilient economy. Furthermore, fostering innovation and promoting entrepreneurship will help drive economic growth and create new employment opportunities.
Although the current economic indicators are concerning, it is essential to recognize that Australia has weathered economic downturns in the past and emerged stronger. By acknowledging the risks and taking decisive action, Australia has the potential to overcome the challenges and continue its streak of uninterrupted economic growth, ensuring a prosperous future for its citizens.
All the big corps, banks, big retails are raking in record profits. Surely they can reduce prices and decrease inflation. But that will never happen.
Fingers only pointing at the RBA who have no control over prices.
It's mathematically impossible to avoid a recession and a toddler could have worked that out months ago
Roughly £120k in my portfolio are in tech/TSLA stocks, can I get an advice on any other stocks that I can acquire to diversify my reserve across multiple markets while creating a comprehensive portfolio allocation that balances my concerns of risk aversion and returns that meet yearly inflation.
The current government only wants to discuss the employment indicator not others such productivity, inflation, debt/deficit, mega pushes for pay rises, & the Voice.
Nothing changes, Marie Antoinette said let them eat cake. Well we better start baking cause these blokes are destroying ,under their economic smarts, our whole Australian way of life and standard of living for our families forever.
Idiots running our country…Wtf
Charmers is just a lying piece of you know what.
, this government will fudge figures and lie to make out they know what they are doing.
There is no risk of a recession, it’s a bloody guarantee with this labour government running Australia
These dogs don’t care
The Morrison government pumped to much money into the economy which has significantly inflated the economy in lockdown which was the wrong thing to do.
Don’t fear recession…..as it will be mild and brief.
Australias greatest strength is the trade and investment with China.
If Australia want more investments …..just open a bit more and investors will rush in from China and elsewhere. Other countries can’t even get any.
Australia is the lucky country.
Even the lucky country need a recession to cool down prices…..
Labour again
The recession we have to have……Mk II……
Why is productivity sown 4% for rhe quarter it's not like everyone wants to "work from home" and have lazy Mondays. The reaction to Covid was insane at the time let alone this was always the outcome from the lockdowns and printing of Billions for doing nothing. Now that's embedded in society's work ethic.
We are in recession, they've been playing around with the numbers such as unemployment to justify rate rises. Double triple counting etc This is going to be a much bigger problem when they can't hide the lies anymore.
Being able to provide all my needs without the help of the Government is really a dream come through and I’m getting $20,000 returns from my $7,600 investment ☺️
Not recession folks, it’s a DEPRESSION coming to a household near you.
It doesn't take qualifications to see the coming "depression" LOL! Big bucks earned by you people to quote the obvious ! I'm in the wrong game LOL!
I will forever be indebted to you you've changed my whole life continue to preach about your name for the world to hear you've saved me from a huge financial debt with just little investment, thanks so much Annmarie Surber
You think so! How about a orchestrated one to enslave you into the planned digital world? If you accept the universal basic income and the death of cash, that spells the end of financial freedom.
Australia has a learner treasurer taking orders from overseas globalists at the expense of Australians. Watch the economy deteriorate over the coming months and watch these dopes blame everyone else but themselves while giving themselves a pay rise!
5:52 Not 50/50 chance of recession. It is 100% chance of recession
October 2023 is approaching
If the government thinks it can avoid a recession they really ARE clueless.
The public wants the government to call a recession so that interest rates start to reduce. The RBA is not stupid! Any reduction in interest rates will have the economy overheating and inflation will skyrocket all over again.
Interest rates will stay at current long term averages for a long time. You can bank on it!
Labor shall have to blame Scomo
Share market collapses dont trigger recession you imbecile, they are symptomatic of looming recession. See them as a red flag for stupid governance
If you have incompetents in power they will make incompetent decisions, you will pay for their incompetence.
We are in a recession! Why do they keep lying???I know of 2 people in this last week who are going to give up their house as they can't afford it! My shopping bill as a single has gone from $110 a week to $160! Add on elec, gas, fuel, water, who are they trying to kid? We are in a failed economy!
With Bepo the clown – what do you reckon ? A shoe in.
This has been planned since 08 GFC – holding down Interest Rates for way too long was going to cause turmoil.
It is a plan !! They knew so many suckers bought into cheap debt and now they will be caught in the plan.
But if you can hold on you will survive the storm…
This is great for Traders and smart Investors, hold until the bottom starts moving back up and start buying back in. Investors need crashes BRING IT ON
This inept government needs to be BOOTED out next election!
Well done Labor. Morons.
Why not gave a recession, New Zealand is having it.
Pointless destructive Lockdowns destroyed our economy. Sensible people warned you of this in March 2020. You recklessly ignored tat advice. You have now destroyed the country. You were warned. You never cared. You still don't care. Australians will continue to get poorer. Perhaps when Australians have suffered, really suffered, they will learn. But I doubt it.
Anyone else remember when Keating won in 93 he said of his promises on national TV"l only made those promises because I didn't think I would win, I can't do any of these things ",that is why he lost the next election because he showed us he was a lying politician, just as albanese has shown, hey chalmers is this the recession we have to have
Yes lets increase interest rate while printing more money at the same time.
I dont think anything about the recession is going to be small the economists are way too optimistic to the level they're completely out of touch with whats going on in the economy. People are living in cars and tents theirs a housing shortage house prices are inflated rents going up then you got the electricity crisis Labors hell bent on making worse. Yeah brace for impact!
Chalmers similar to Keating?
Just on a side note…….. I know Target is out. But are we boycotting Kellogs now, as well? I heard something about Tony the tiger and Dylan Mulvaney.
And what about Garth Brooks? Are we burning all of his CD's now for promoting Acceptance and Inclusion?
I can't keep up with all of the Cancelling!!
Australia needs to Join BRICS
Didn't see that coming….like we saw it coming then. Frog Soup. Slow boiled to disaster.
Want lower inflation to be lower then Philip Lowe needs to tell businesses to stop price gouging with their record profits AGL I am looking at you with your 35% increase in power bills.