Powered by MOMENTUM MEDIA
Powered by MOMENTUM MEDIA
subscribe to our newsletter

Economic risks remain 'tilted to the downside' for 2016

A global investment management group has published its 2016 outlook for the Australian economy.

Vanguard’s economic and investment outlook for next year highlighted the ongoing transition away from mining, with a volatile investment outlook on the cards.

“In Australia, risks remain tilted to the downside as the economy navigates a difficult transition from mining-led to broad-based growth,” the group said.

Advertisement
Advertisement

“A cyclical economic recovery is likely to emerge over comings years as the drag from mining investment fades. However, in our view this is unlikely until 2017 at the earliest,” it said.

Vanguard believes policymakers are likely to continue to face difficulties achieving two per cent inflation over the medium term. However, the group noted that as of this month, some of the most pernicious long-term deflationary forces are beginning to moderate cyclically for the first time since 2006.

“Going forward, the investment environment is likely to be more challenging and volatile,” the group said.

“Investors with an appropriate level of discipline, diversification, and patience are likely to be rewarded over the next decade with fair inflation-adjusted returns.”

[Related: Outlook stable, but headwinds rising for Asia-Pacific banks]

Economic risks remain 'tilted to the downside' for 2016
mortgagebusiness

Latest News

The federal government is expected to address mounting headwinds in the residential property market with a new round of housing stimulus. ...

Fintech company Moneytree is urging the ACCC and Treasury to “reconsider” the draft rules around consumer data right data disclosures to...

The COVID-19 crisis has triggered the first monthly plunge in housing approvals, which are expected to continue falling through. ...

FROM THE WEB
podcast

LATEST PODCAST: ASIC releases guidance and loses an appeal

Do you expect COVID-19 to reduce or increase your business flows?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.