In addressing delegates at this year’s annual conference, the Commonwealth Bank’s Director (Economics), John Peters, provided delegates with a frank assessment of the near term outlook for the Australian Economy.  John pointed to the fact that, whilst Australia’s economic growth had come off a little in recent years, the fundamentals of the Australian economy were sound. In fact, Australia is enjoying its’ 24th successive year of positive economic growth – a feat that is viewed jealously by most other developed economies

If you read the economic pages of today’s newspapers, you could be forgiven for believing that Australia’s economy is relatively fragile and that the near term outlook for growth is largely pessimistic.

In fact, many politicians and media commentators appear to be ‘talking down’ the economy which appears to be reducing business and consumer confidence.

But is our near term economic outlook really that bad?

In an address to delegates at ACAPMA’s Annual Conference and Expo this week, John Peters of the Commonwealth Bank provided delegates with a series of unadulterated insights into our economy.

“Listening to John’s presentation we were all left with the view that while our economic growth has recently come off an unnatural high –largely created by the mining boom – it has simply returned to long term average annual growth rates”, said ACAPMA CEO Mark McKenzie.

John suggested that we are being more pessimistic than the economic indicators suggest and that the fundamentals of our economy remain strong.

In fact, John pointed to the fact that we are one of just 8 economies in the world that continue to enjoy an AAA Credit Rating – largely due to Australia having achieved 24 years of successive economic growth and having a low level of national debt relative to most other economies.

With regards to the near term economic outlook, John suggested that economic growth in 2016 and 2017 was likely to hover between 2% and 3%.

“John also told us that he estimates the $AUD will likely remain between $USD 0.65-0.75 over the next 2 years, barring anything going dramatically wrong with China”, said Mark.

Conference delegates were provided with a comprehensive economic summary. A copy of this summary can be sourced by clicking here.

“At a time when many fuel businesses are considering investment in the renewal of fuel infrastructure, John’s insights are very welcome and provide some food for thought as we all consider how to manage our businesses over the next 2 years”, said Mark.

“It was great for our members to have an opportunity to hear from an economic expert, allowing us to make up our own minds about what is going on – rather than having it filtered by politicians who sometimes choose to interpret the economic ‘tea leaves’ in an effort to score points over their political opponents, said Mark

Members wishing to discuss any aspect of the research are invited to contact the ACAPMA Secretariat at assist@acapma.com.au or by calling 1300 160 270.

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