Money Bright economic outlook for now: Deloitte

05:26  18 april  2017
05:26  18 april  2017 Source:

Young Australians better off renting than buying a home, says economist Chris Richardson

  Young Australians better off renting than buying a home, says economist Chris Richardson <p>Young Australians would be better off renting than trying to purchase a property given record prices in capital cities, according to one of Australia's most respected economists.</p>Deloitte Access Economics' Chris Richardson used his speech at the National Press Club today to offer some advice to those seemingly locked-out of the property market.

Global Economic Outlook . A quarterly publication that offers insights from Deloitte economists around the world on trends and events shaping the marketplace. Each issue features region-by-region economic outlooks .

In this edition of Deloitte ’s Global Economic Outlook , our global The brighter outlook for the real economy owes much to supporting external condi-tions, including: The brighter consumer sentiment is mostly due to the lower energy prices, but it is also supported by developments in the labor market.

Prominent economist Chris Richardson says there is a lot going right in Australia at the moment. © AAP Prominent economist Chris Richardson says there is a lot going right in Australia at the moment. Australia is on the cusp of achieving the world's longest ever run of economic growth without a recession and the best international trade position since Mamma Mia was topping the charts in 1975.

At the same time, net wealth at the end of 2016 among Australia's 9.23 million households was $9.4 trillion, meaning the average Aussie family could consider themselves "millionaires" on paper at least.

Prominent economist Chris Richardson says there is a lot going right in Australia at the moment.

In his latest quarterly business outlook, the Deloitte Access Economics economist said at the beginning of 2017 it seemed a tad brave to say this year would see global and Australian growth outperforming previous forecasts.

New sonic blast shrimp named after Pink Floyd

  New sonic blast shrimp named after Pink Floyd A newly-discovered shrimp species with a bright pink claw and the ability to produce one of the loudest sounds in the ocean has been named after legendary British band Pink Floyd, zoologists said on Wednesday.&nbsp;"Synalpheus pinkfloydi" has a bright pink claw that, "just like all good rock bands," can produce large amounts of sonic energy, according to a post on the blog of the University of Oxford's Museum of Natural History.

The WA Economic Outlook is a summary of the Deloitte Access Economics Business Outlook publication with a specific focus on the Western Australian economy . Read the April 2018 edition.

A report on South Australia's business outlook , by Deloitte Access Economics , says there are some positive signs. Among other things, it says fears of the knock-on effects from Holden's manufacturing demise in Adelaide are being exaggerated.

"That's now fast becoming accepted wisdom," Mr Richardson said on Tuesday.

Ahead of the International Monetary Fund releasing its latest world economic forecasts this week, Mr Richardson said China has thrown the kitchen sink at its economy, India has shrugged off a credit crunch and neighbouring News Zealand is looking pretty comfortable too.

Further afield, he expects the US economy to be supported by growth in business spending, while both Germany and Japan are at full employment.

"All in all, that's a pretty good business backdrop for the globe in 2017," he said.

He said even allowing for Cyclone Debbie, last winter's rains were so good, as were agricultural prices, suggesting this is the best year down on the farm in a number of years.

Despite this bright backdrop, Mr Richardson does not believe the Reserve Bank will be lifting the cash rate until 2018, "but rise they will".

"Interest rates have been so low for so long that cheap credit seems normal," he said.

"But global markets are pricing in more inflation and growth and coming years will see rising interest rates."

However, while Mr Richardson holds positive views on the short-term, he issued a separate report last week of the huge risks facing the Australian economy if much-needed reforms aren't undertaken, warning its world record expansion would come to an abrupt halt with the first recession in 26 years if China stumbled.

Better days ahead for economy: Morrison .
Treasurer Scott Morrison will give a broad outline of the May 9 budget's objectives when he addresses an Australian Business Economists lunch in Sydney.The treasurer will tell an economists' lunch on Thursday the Australian economy is also performing well as seen in the rebound in economic growth late last year and inflation returning to the Reserve Bank's 2-3 per cent band for the first time since September 2014.

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