Aussie Economy Is Set For A Rebound
Frank Gelber, chief economist for BIS Schrapnel said recently at a conference in Brisbane that Australia was in the middle of a shallow but protracted downturn and it would be expected that the economywould still remain weak even through 2010.
He also indicated that it would be followed by a strong three stage rebound:
1. Firstly there will be the residential recovery
2. Second will be a pick-up in household expenditure, and
3. Thirdly will be the follow on of business investment
Once all three stages have taken place it is expected there will be a strong solid base from which the Australian economy will grow.
Spending has been slow and will most likely continue to be so for the next 18 months.
Although consumer confidence shows signs of improving there is still a certain amount of caution in the marketplace. However Frank Gelber said, “when we come out, it will be very strong. We should remember that and understand the opportunities now being presented……………..The banks were probably right to pull the plug on finance……but they did it for the wrong reasons. We have feet like cement. We cannot move and there’s nothing we can do about it.”
BIS Schrapnel is a leading provider of industry research, analysis and forecasting services. Follow the link for more of their reports regarding residential property.
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