10DecFive Things We Can All Do to Ensure 2014 is a Prosperous Economic Year
Posted on 10/12/2013 by Nine2Three
The Reserve Bank is forecasting economic growth of between 2-3% in 2014 and 2.75-4.25% in 2015, as we undertake the “big transition” from expansion in mining to non-mining investment. Undoubtedly, the next twelve months will be difficult and challenging. There is nothing any of us can do about the slowing Chinese economy, decline in mining investment and the high level of the Australian dollar. But there are some things we can all do to ensure the next few years are successful and prosperous.
Number One. Be more optimistic and confident about the future. Look on the bright-side, we aren’t doing too badly, the last recession in Australia was more than twenty years ago, we were not overly impacted by the global financial crisis, unemployment is only 5.7% (or 94.3% employment) and interest rates are at record lows. When businesses are more optimistic, they act on more opportunities, implement more development initiatives and are more successful in growing profits.
Number Two. Buy. When households and businesses spend more it has a huge multiplier effect on the economy. Just think about when you buy a new piece of business equipment how many people will benefit. The manufacturer’s sales increase, he expands production and employs more people. The newly employed people buy more goods, the retailer’s sales increase and he employs more people. Ultimately, the economy expands and we all benefit.
Number Three. Invest. The Australian economy is growing and you don’t want to miss out by hesitating until things look better. By the time things look better, the best opportunities are often gone. The time to strike is now, tomorrow can wait. It doesn’t matter if it’s your superannuation fund, an apartment, shares or a new business idea - just invest.
Number Four. Buy Australian. It’s our country and our future. The Federal Government has placed a line in the sand by stopping the giant US food processing corporation Archer Midland Daniels from buying our last listed grain company, Graincorp, which owns the wheat silos and port facilities along the east-coast. But many Australian companies in many sectors of the economy are suffering financial distress and are under threat of closure of acquisition by foreign multinationals. So if the quality and price are equal, keep it local and buy Australian.
Number Five. Support Small Business. Too big and far too good to be ignored. There are over 2 million small businesses in Australia, employing over 7 million people (that’s over 60% of our workforce) and producing some great products and services. When you build a long-term relationship with your local small business you are helping the economy and laying the foundation for future job creation.
Important Note: These articles have been prepared for general circulation and are circulated for general informational purposes only; these articles should not be regarded as business or investment advice. The articles represent the views of the writers and are subject to change without notice. Additionally, while every care has been taken in the preparation of the articles no representation or warranty as to accuracy or completeness of any statement is given. An individual or organisation should, before any business or investment decision is made, consider the appropriateness of the information in this document, and seek professional advice, having regard to objectives, situation and needs. This document is solely for the use of the party to whom it is provided.
Posted in I Need an Economic Update
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