THE ECONOMY AFFECTS US ALL
On Monday night Matthew Sonnemann, a stock broker and wealth manager for over thirty years, spoke with us about the state of the economy in the recent last financial year and in the current financial year.
He displayed graphs and reports which highlighted the status of currencies, which had been debased by inflation, as well as the fact that the trend for the GDP in Australia is in a gradual state of decline. Matthew also mentioned a fact often referred to by business commentators in the media, that the influx of one million immigrants is making the Australian economy look much better than it actually is.
Until four or five years ago, the Australian economy was looking relatively good. He listed the fundamental issues affecting any discussion/analysis of the trends in the Australian economy:
- A lack of productivity growth
- Low business investment levels
- A surge in employment
- Energy cost rises
- Low productivity levels in the services sector
- The consumer saving rate is low - in contrast to what it was during COVID
- The average consumer is still spending
- Loose fiscal policies - including tax cuts and high budget deficits
- Industrial relation changes - making the economy rigid
Thank you Matthew for a very informative presentation.