What's your head for the world economy?
While the short-term outlook looks bleak, the International Monetary Fund (IMF) forecasts a positive outlook for 2021.
When the economy does recover, which countries will see the largest growth?
That's what the following infographic from Visual Capitalist shows.
The IMF forecast for Australia is for a recession this year followed by 6.1% growth in 2021
The International Monetary Fund’s economic forecasts are based on expectations that the coronavirus will be contained in the second half of 2020 and that there will be no second wave of infection, but they have warned of the potential for a second wave of the coronavirus if a vaccine is not developed.
Economists seem to agree that the domestic economy is likely to experience a V-shaped recovery when it eventually comes.
Of course the biggest unknown is just how long the coronavirus lockdown restrictions will remain in place.
Meanwhile, economists generally expect the unemployment rate to peak at around 10 per cent by the end of June 2020, compared with 5.2 per cent at present.
However, this is less than the levels originally forecast before the government introduced its fiscal stimulus package, including JobKeeper, to keep people employed.
The inflation rate in turn is forecast to be 1.4 per cent in June, falling to 1.25 per cent by the end of the year.
- Also read:Melbourne property market forecast for 2025
- Also read:Brisbane’s property market forecast for 2025
- Also read:Latest property price forecasts for 2025 revealed. What’s ahead in our housing markets in the next year or two?
- Also read:Sydney property market forecast for 2025
- Also read:This week’s Australian Property Market Update – Latest Data, State by State December 10th 2024
Over the next 3 years official interest rates will remain at their current historic lows and will only rise when unemployment drops back to 4.5% and inflation picks up.
The RBA suggests this could be three years away.
The Reserve Bank of Australia is also providing $90 billion to the banks at a rate of 0.25 per cent to ensure a cheap line of credit is available throughout the crisis.
The RBA will also fund the banks at that low rate over three years, and provide additional funding if the banks increase lending to small and medium-sized businesses.
Now is the time to take action and set yourself for the opportunities that will present themselves as the market moves out of the Coronavirus cocoon
If you're wondering what will happen to property in 2020–2021 you are not alone.
You can trust the team at Metropole to provide you with direction, guidance and results.
In challenging times like we are currently experiencing you need an advisor who takes a holistic approach to your wealth creation and that's what you exactly what you get from the multi award winning team at Metropole.
If you're looking at buying your next home or investment property here's 4 ways we can help you:
- Strategic property advice. - Allow us to build a Strategic Property Plan for you and your family. Planning is bringing the future into the present so you can do something about it now! This will give you direction, results and more certainty. Click here to learn more
- Buyer's agency - As Australia's most trusted buyers’ agents we've been involved in over $3Billion worth of transactions creating wealth for our clients and we can do the same for you. Our on the ground teams in Melbourne, Sydney and Brisbane bring you years of experience and perspective - that's something money just can't buy. We'll help you find your next home or an investment grade property. Click here to learn how we can help you.
- Wealth Advisory - We can provide you with strategic tailored financial planning and wealth advice. Click here to learn more about we can help you.
- Property Management - Our stress free property management services help you maximise your property returns. Click here to find out why our clients enjoy a vacancy rate considerably below the market average, our tenants stay an average of 3 years and our properties lease 10 days faster than the market average.
