As this year ends and a new one approaches, it’s time to reflect on what a year it has been – from global health responses, worldwide economic hits and a disruption to life as we know it.
To look at 2021 predictions of economic recovery, we first must look at the past.
The Great Recession of 2007-2009 didn’t hit Australia as hard as its global counterparts. The global Coronavirus crisis happening now though, is different.
You don’t need to be reminded of the unfamiliar, drastic actions of shutting up shops, ceasing productions and other never seen before measures to fight a virus.
But I’m sure you want predictions of when it will end, when markets will recover and life as we know it will return to a (new?) “normal.”
So, when will that be? And when will Australia be out of a recession?
Fortunately, it looks like there’s something to be optimistic about this Christmas and New Year period.
Read more from Gold Coast Accountants and financial planners to find out.
A sample of 2020 financial statistics
March 2020 was when Australia had to take the virus seriously, and back to back contractions in gross domestic product (GDP) in March and June put Australia in its first recession in nearly 30 years.
A 7% contraction recorded in June marked Australia’s worst recorded fall in economic activity.
The wait for the official September GDP figures is now over and the results were a welcomed relief.
A gradual, but steady economic recovery is slowly but surely on the horizon according to these latest economic predictions.
What the experts are saying
On the 2nd of December the ABS revealed a 3.3% growth in GDP for the September quarter.
This means Australia is not technically in a recession, but the economic ‘cure’ is a long and winding road.
As Treasurer Josh Frydenberg stated: “Technically the recession is over, but the recovery is not.”
When asked about consumer confidence and ‘cushioning the blow,’ he stated:
“It’s the culmination of the significant government support. It’s the reflection of the virus being suppressed across the nation…seeing business confidence [and] consumer confidence coming back.”
What about the RBA cash rate?
As it stands on December 3rd, 2020, the official cash rate determined by the RBA is 0.10%.
How can a Gold Coast Accountant and financial planner help?
These are still trying times, so it’s important you have an accounting and finance professional to ensure you’re still or working towards firm financial footing.
Why Crest Accountants:
- We can help you understand and access Government funding and support packages,
- Access tax breaks and benefits,
- Plan for future financial success and security, whether it’s for business or personal wealth,
- Help you understand and implement optimised financial management systems, and
- Spot financial opportunities.
So, is Australia out of a recession? Yes, but it isn’t all smooth sailing waters ahead just yet – we’ve all got a lot of hard work to do, to get our country back on track.
The recovery will be gradual and uneven, but working with a Gold Coast Accountant and financial planner at Crest will ensure you always remain informed, taken care of and motivated with your accounting needs.
Good tidings have been brought early! The team at Crest hope Australia’s slow, but steady rise from economic downfall enable you to relax and enjoy the Christmas and New Year period that little bit more.
Need help with accounting and finance needs?
Contact Crest Accountants today for trusted accounting solutions.
Disclaimer: The information contained in this news post is general in nature and is intended to provide a general summary only and should not be relied on as a substitute for professional advice.