Finance Forecast 2010

Written on the 2 December 2009 by Dan Fox, Fox Finance Group

The Australian economy has escaped the full impact of the global financial crisis (GFC). Unlike most other countries we have not fallen into recession despite the worst downturn in the economy since World War Two.
The real positives are:

• Strong domestic economic activity continues
• Retail spending is still strong
• Home lending is also still strong (particularly in the first home buyer market)
• Continued low interest rates (although they are on the rise)
• Unemployment has not risen as high as predicted
• Business investment still strong

These positives are largely as a result of several factors:

• Government stimulus spending
• Government bonus tax breaks for business
• First home owners grant
• Slowing inflation

So while there are many positives I don't believe we are out of the woods yet. Some of the information comming out from top economists indicate we are only about half way through the GFC. So that means 2010 may also be a difficult year. But where there are difficulties there are also opportunities.

These opportunities will become clearer to you if you continually:

• Look for better ways of doing business
• Look for more cost effective ways to do business
• Looking for faster ways to do business
• Pay off any non tax deductible debt (credit cards & non investment/Business debts)
• Adopt a long term view (more than just a year)

So while our economy here in Australia is relatively stable, there are still some challenging times ahead. Whether you run a small business or you are wage earner, make sure you consider the above 5 points & how they may apply to your situation and get ready for 2010 & beyond.