The Australian economy for 2019 could prove particularly unstable for the island, especially considering the fact that the country is very strongly linked to the economy of China, whose forecasts are negative.despite this, there are some positive aspects to consider, first of all, the fact that it seems another stable year for interest rates, a small reassurance for a 2019 to live all.
Cost of living
The Federal Government and the Reserve Bank of Australia continue to say that wage growth will increase over time, as unemployment is falling. Every year, wages are up 2.3 percent on average, above inflation, but still remain close to their lows for two decades. For the financial year 2019 / 2020, wages are expected to grow by 3%, which will affect the cost of living in Australia.
Employment and unemployment
While the government boasts that it has created more than 1.1 million jobs since the coalition came to power in 2013, the outlook is extremely cautious: While the latest unemployment rate has risen to 5.1 percent, the Treasury expects it to return to 5 percent by 2019 (which would be the lowest value in six years), the outlook is positive from this point of view, with the Reserve Bank of Australia forecasting a further decline in the unemployment rate in Australia to 4.75 percent.
Housing price level
Buying a house in Australia is becoming more and more expensive, especially in major cities like Sydney and Melbourne. The International Monetary Fund, in its annual assessment, said that house prices in the last 10 years have risen 70% nationally, with Sydney and Melbourne above average (+100% and +90% respectively). In recent months there have been slight declines, but they are still too low to make buying a sustainable home for most. This is also why house sharing services such as Housers are gaining ground, allowing you to buy a home share in Australia for investment purposes.
International events always deserve attention, especially a possible escalation of the trade war between the United States and China, which will not be in anyone’s interest, especially for a trade country like Australia. With US President Donald Trump at the helm of the country, we cannot say how the situation between the US and China will end. At the same time, the United Kingdom should formally leave the European Union in March, but so far no agreement has been reached on Brexit, and even here there is no certainty as to how it will end.
Tassi di interesse
The Reserve Bank of Australia is unlikely to follow the US Federal Reserve in raising interest rates. The minutes of the central bank’s board of directors have confirmed that the objective of raising interest rates is always there, but it is still too early for this to happen.