POWERED BY MOMENTUM MEDIA
Can Australia avoid recession?
The Australian economy is likely to avoid recession but will slow significantly, according to the latest Russell Investments Market Barometer.
The Barometer, released this month, acknowledges that the Australian share market has felt the full force of the financial crisis but suggests the country will avoid a recession, albeit that there will be a significant slowing.
It said, however, that there was a risk of a more serious downturn similar to the US in circumstances where Australian households had been on a debt binge for the past two decades and where house price gains had been much larger than in the US.
“The main difference is that Australia has an undersupply of houses in contrast to the oversupply in the US,” the Barometer analysis said. “Strong population growth from immigration means there is demand for around 180,000 new dwellings every year compared to the 155,000 dwellings constructed annually.”
It said the risk was that the credit crisis would cause a bigger than expected slowdown in Australia and a sharp rise in the unemployment rate capable of triggering a house price correction, placing highly geared households under financial stress.
The analysis said such an eventuality could send the economy into a painful recession.
Recommended for you
The two funds have announced the signing of a non-binding MOU to explore a potential merger.
The board must shift its focus from managing inflation to stimulating the economy with the trimmed mean inflation figure edging closer to the 2.5 per cent target, economists have said.
ASIC chair Joe Longo says superannuation trustees must do more to protect members from misconduct and high-risk schemes.
Super fund mergers are rising, but poor planning during successor fund transfers has left members and employers exposed to serious risks.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
88.01 3 y p.a(%)
2
Global X 21Shares Bitcoin ETF
72.60 3 y p.a(%)
3
Global X GlobalX FANG+ ETF
44.46 3 y p.a(%)
4
Pengana High Conviction Equities B
39.12 3 y p.a(%)
5
Pengana High Conviction Equities A
39.05 3 y p.a(%)
