Monthly Economic Videos
Each month we will bring you a video on an update of what is happening in the economic world.
Our February update video also takes you through key economic indicators so you can understand how the Australian economy is faring as we recover from the COVID-19 induced recession of 2020.
Please get in touch if you’d like assistance with your personal financial situation.
Economic growth is now forecast to contract 4% in 2020, before rebounding 6% in the year to June 2021.
Joe Biden’s US election victory released a pressure valve on global markets with US shares reaching new historic highs and Australian shares rising more than 9% over the month.
The Reserve Bank has kept the cash rate at its current record low of 0.1%. The cash rate is not anticipated to be increased for at least three years.
The Federal Budget on October 6 was the start of a pivotal month on the economic scene.
Budget estimates released later in the month revealed a deficit of $132.5 billion in the year to September. While the deficit is expected to peak next year, there are also some positive signs emerging.
The ASX200 finished slightly up for the month, with most of October’s early gains eroded in the lead up to the US Presidential election and the RBA announcement.
The Reserve Bank has cut the cash rate to 0.1%, from its current record low of 0.25% and intends to purchase $100 billion of government bonds, to help stimulate the economy.
On October 6th the Government will outline one of the most important Federal Budgets in living memory.
The biggest government stimulus program since WWII has resulted in a budget deficit of $85.3 billion in the 2019/20 FY, with more spending on the cards to drive economic growth.
The Reserve Bank has kept the cash rate at its current record low of 0.25%.
The Reserve Bank forecasts the economy will contract 6% this year before rebounding 5% in 2021.
The recent company reporting season provided an insight into the financial impact of COVID-19 on the economy and for investors.
Only 75% of ASX 200 companies reported a net profit in the year to June. Full-year earnings were down 38% on aggregate, while dividends were down 36%.
53% of companies either cut or didn’t pay a dividend, a move that will affect investors who depend on dividend income from shares.
The current cash target rate of 0.25% has been left unchanged and is expected to remain at its current level for the foreseeable future.
The government’s July budget update gave an insight into the economic impact of the health crisis, below is a video to assist you to stay up to date with the latest indicators.
The economy contracted by an estimated 0.25% in 2019-20, with a further fall of 2.5% in 2020-21.
The budget deficit is estimated to be:
– $85.8 billion in 2019-20 (4.3% of GDP, and
– $184.5 billion in 2020-21 (9.7% of GDP).
This would be the biggest deficit as a share of GDP since 1946 in the aftermath of WWII.
The current cash target rate of 0.25% has been left unchanged.
After 28 years Australia’s record economic expansion ended due to the COVID shutdowns, below is a video to assist you to stay up to date with the latest indicators.
Our economy contracted by 0.3% in the March quarter, with an estimated 8% contraction in the June quarter, confirmation that we are officially in recession.
Yet Australia is weathering the COVID storm better than most nations, with signs of building business and consumer confidence.
In the year to June, Australian shares trimmed their losses to 10.8% after a partial rebound in the last quarter. US shares rose 4.6% over the same period.
The current cash target rate of 0.25% has been left unchanged and is expected to remain at its current level for the foreseeable future.
As May unfolded, hopes grew of economic re-opening, below is a video to assist you to stay up to date with the latest indicators.
Reserve Bank Governor Philip Lowe told a Senate Committee on COVID-19 the economic downturn was less severe than feared due to Australia’s better than expected health outcomes and government stimulus and support.
Australian shares bounced back by around 5% in May, while the US market rose 3%.
The cash rate for June has been left unchanged at 0.25%.
Data released in April provided an early insight into the impact of the coronavirus on the Australian economy, below is a video to assist you to stay up to date with the latest indicators.
After a month of social and economic hibernation, there are signs that some of the restrictions will soon be loosened somewhat. This is welcome news for households, businesses and our economy.
Global markets continued to react to the ongoing situation with volatility.
The cash rate for May has been left unchanged. At 0.25% the cash rate is currently considered to be at its effective lower bound.
Global markets fell during March, reacting to the ongoing situation and government stimulus measures with volatility.
The cash rate for April has been left unchanged, however the RBA cut the cash rate twice in March – 4/3/2020 decreased to 0.5% – 20/3/2020 decreased to 0.25%
The RBA also began buying government bonds to bring yields down in line with the cash rate.
The RBA additionally offered a term facility to banks so they can supply credit to small and medium businesses.
Data released in February gave an early indication of how the Australian economy has been impacted by the bushfires and coronavirus.
The Reserve Bank of Australia lowered its near-term growth forecast for the year to June 2020 from 2.5% to 2.0%.
Australian, US and European share markets all fell by more than 8% in February. Commodity prices also fell, although gold was up more than 5% due to its safe haven status.
The RBA cut the cash rate to a new record low of 0.50%.
The decision was made to soften the impact of the coronavirus on the back of weak economic data.
Global growth forecasts were downgraded to 3.3% this year and 3.4% in 2021 on the basis of geopolitical and trade tensions.
Locally, the impact of summer bushfires and ongoing drought is being felt. The cash rate was held at the current record low of 0.75% for the time being.
We also look at the other economic indicators that paint a picture of the health of the economy, including consumer sentiment, movements in the Australian dollar, unemployment and wages as well as the state of the property market across all of the capital cities.
Economic activity remains patchy, with the RBA forecasting that Australia’s economy will stay flatter for longer.
The cash rate was held at the current record low of 0.75%.
The economy is benefiting from already low interest rates, recent tax cuts, ongoing infrastructure spending and the upswing in housing prices nationally.
The cash rate was held at the current record low of 0.75%.
Current low interest rates appear to be supporting a gentle turn around in economic growth. This is evidenced by a rise in the September quarter inflation figure and a slight easing in the unemployment rate.
Your financial well-being and plans for the future can be impacted by various economic events.
Your financial well-being and plans for the future can be impacted by various economic events.