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What's the investment outlook for the year ahead?

Investments  |  2/08/2017  |   3 min duration

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Australia reached an important milestone in 2017, recording 26 consecutive years of sustained economic growth. The numbers show the resilience of our economy, even as we have needed to become less reliant on the resources sector.

A quick glance reveals that interest rates in Australia remain historically low; the headline numbers for unemployment are also low; and growth rates have been positive if not spectacular. These indicators have been underpinned by many factors, including the following:

  • Education is now our second biggest export, bringing in $20 billion annually from international students and associated services;
  • Construction, especially in the housing market, has injected billions into the economy;
  • The lower Australian dollar has helped commodity exports and tourism, with numbers of foreign visitors growing strongly year over year, although the dollar has been rising again.

The world has seen a synchronised and sustained economic expansion over the last few years, reinforcing a fairly optimistic economic outlook.

Reassuringly, our biggest trade partner continues to push ahead. China’s growth rate is currently tracking at around 6 to 7%, which is a controlled easing from the heady days of double digit growth rates a few years back.

This is supported by the continued growth in the Asian region, especially from Thailand and Vietnam. From an investment standpoint, Equip continues to look for opportunities both here and abroad. While bargains are hard to come by and most assets are fully valued, pockets of opportunity still exists. Our infrastructure investments in assets such as Brisbane Airport and Flinders Ports continue to generate solid yields for our members.

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