The last twelve months have seen their fair share of ups and downs. Despite global volatility in financial markets, the Australian economy has performed reasonably well, and our market is up just over 10% compared to the same time last year.
While there is optimism, geopolitical conflicts and US tariff uncertainty mean there are headwinds that need to be factored in. Our team of financial advisors is continually monitoring domestic and international conditions, and our focus remains on resilience and adaptability. In this article, our team looks at influences likely to shape the economic outlook over the coming financial year.
Inflation: Conversation around inflation dominates the headlines and directly impacts interest rates. While inflation is easing (2.4%) from its high that resulted in an avalanche of interest rate hikes, the RBA remains cautious and indicators suggest that the cash rate of 4.1% will be around for a little while yet.
Housing: Housing remains a significant issue, and despite headline-grabbing government announcements, there is no silver bullet. Zoning delays and skilled labour shortages are sticking points, adding pressure to the housing market. Housing affordability remains a concern.
GDP: Economic growth is forecasted to be modest, around 1.9–2.2%. China’s demand for iron ore has declined, but signs show it is stabilising. Domestic consumption and a services export recovery will pave the groundwork for onshore economic growth.
At Step Up Financial, now AFPG, we consider each client’s risk profile and long term financial goals when creating a planning strategy tailored to their circumstances. Part of this is continually reviewing domestic and global financial trends and applying our research to ensure we consider all factors that can influence our clients’ positions. As the end of the financial year draws closer, our team is carefully reviewing a number of levers:
The upcoming financial year offers challenges as well as opportunities. Our team understands that our clients need and rightfully require clarity and a steady hand during times of uncertainty. We continue to stay abreast of economic conditions, onshore and internationally, and will fine-tune clients’ financial plans to manage the challenges and maximise opportunities when they arise.
If you have any questions or want to review your current financial plan don’t hesitate to give our office a call.
Step Up Financial Group, now AFPG, is a team of qualified financial specialists. Every year, we help hundreds of Australians create financial stability and resilience while building toward a confident retirement.
Contact us today for experienced, compassionate, and professional financial planning advice.
107 Moulder Street,
Orange, NSW 2800
PO Box 2499
Orange, NSW 2800
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