Australia slides into a “per capita recession”

This article looks at the outlook for the Australian economy following another quarter of very weak growth and what it means for investors.

 The key points are as follows

  • Australian growth slowed even more in the December quarter. Growth may bounce back a bit this year, but the housing downturn will likely constrain it to around 2-2.5%.

  • As a result, unemployment is likely to drift up and wages growth and inflation remain lower for longer.

  • The RBA is on track to cut rates this year and the housing downturn will likely see Australian shares continue to underperform global shares.

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