‘The greatest asset class’ for Australia’s long-term growth
Posted May 04, 2018 07:19:58 It’s no secret that Australia is an asset class with enormous potential, but there are two main problems with it.
The first is the way the country is structured, with a single-party government in Canberra that sets the rules and then the rest of the country has to compete against it to maintain an efficient market.
The second is that, like many other asset classes, Australia is prone to cyclical swings.
The recent downturn has only reinforced that point, as both the Federal Government and the Reserve Bank are now tightening monetary policy and the Australian dollar has fallen sharply against other currencies.
Australia has been in this slump for more than a decade, but it has yet to recover.
“We’re going to have a lot of volatility in the asset markets in the next couple of years,” Professor Andrew White, from the Australian National University, told The Australian Financial Report.
“Australia has a lot more to lose than most other countries, because of the level of debt, but the Australian Government is in a very tough position, and there is going to be a lot volatility in that as well.”
What are the big risks?
Australia’s big banks are facing the biggest challenge of all.
Despite being a major financial centre, the country’s economy is still largely dependent on exports and its biggest industry, agriculture, relies on a combination of imports and domestic supply.
If things don’t improve, that could spell a catastrophe.
In recent years, Australia’s banks have faced a number of headwinds.
The Federal Government imposed a range of restrictions on foreign ownership of the banks in 2012, but in 2013 the government extended the rule to the big four, which has since seen many banks sell off significant shares.
“The government has tightened some restrictions on the foreign ownership, and we’ve seen a lot go out the window,” said Andrew Gwynne, head of the Australian Banking Association’s (ABAN) retail banking business.
“That’s a big issue, because we’re still dealing with a lot going on overseas. “
“It’s just not good for our domestic financial stability.” “
In a country with one of the world’s largest domestic banks, and a global reputation for being resilient, the impact on Australia’s economic growth is significant. “
It’s just not good for our domestic financial stability.”
In a country with one of the world’s largest domestic banks, and a global reputation for being resilient, the impact on Australia’s economic growth is significant.
“I think a lot has been lost,” said John Worsley, from Credit Suisse, Australia.
“A lot of the issues we’re dealing with in the economy have nothing to do with the foreign exchange, which is a major component of our economy.”
The government’s efforts to tighten foreign ownership restrictions have been welcomed by some economists, but critics have warned that this has also caused banks to become more vulnerable to financial crisis.
“If you look at the bank’s performance over the past three years, the banking sector has seen a pretty significant decline in its business,” said Professor White.
Professor White says the impact is most pronounced in the agricultural sector, which relies heavily on foreign farmers to produce much of its exports. “
In terms of the macroeconomic impact of tightening foreign ownership and foreign investment, that’s certainly one thing that the government could do.”
Professor White says the impact is most pronounced in the agricultural sector, which relies heavily on foreign farmers to produce much of its exports.
“You see this big fall in the value of the dollar, and that affects our exports and our prices,” he said.
“There’s not as much capital available to them to continue to grow the business.” “
What’s next? “
There’s not as much capital available to them to continue to grow the business.”
It’s been an economic malaise for more years than anyone expected.
In its worst-ever financial crisis in 2016, Australia experienced a sharp slowdown in the number of jobs created.
But the recovery has been uneven and Australia’s economy has been far more resilient than other developed countries.
Professor White, however, says there is a bright side to the recent economic downturn.
“While the economy has taken a big hit, I think it has come back in a big way,” he told The National.
“Some countries are seeing a resurgence, such as in Japan and in Europe, but for Australia it’s a different story. “
“Our economic diversification and the way we are investing our money is one of our biggest strengths.” “
With a population of more than 14 million”
Our economic diversification and the way we are investing our money is one of our biggest strengths.”
With a population of more than 14 million
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