Economic Video Update – December 2020

November was an extraordinary month for the global and local economy. Early indications are that swift action by the government and the RBA have limited the impact of the COVID recession.

Economic growth is now forecast to contract 4% in 2020, before rebounding 6% in the year to June 2021.

Joe Biden’s US election victory released a pressure valve on global markets with US shares reaching new historic highs and Australian shares rising more than 9% over the month.

The Reserve Bank has kept the cash rate at its current record low of 0.1%. The cash rate is not anticipated to be increased for at least three years.

 

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Disclaimer: The information in this article is general in nature and does not take into account your personal circumstances, financial needs or objectives. Before acting on any of the information you should consider the appropriateness of the relevant product having regard to your objectives, financial situation and needs. In particular, you should seek independent financial advice and read the relevant Product Disclosure Statement or other offer document prior to acting on any financial product or implementing any financial strategy.

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