First, let’s be clear that most economists are not expecting a full-blown recession in Australia. NAB’s latest forecast is for the economy to grow by 0.7% in 2023 and 0.9% in 2024. The Reserve Bank says growth has slowed, but GDP is still up by 2.7% this year. Westpac is forecasting positive (though low) levels of growth for 2023.
Nonetheless, CommBank’s latest Household Spending Index fell in February, indicating weaker consumer sentiment.
“We are seeing the growing impact of higher interest rates, with consumers taking stock and prioritising what they are spending their money on,” says CommBank senior economist Belinda Allen.
The upshot is that we may avoid a recession, but with Australians watching every dollar, it pays to create an action plan for your business in case the economy falters. Here are five ideas for getting started.
Audit key costs
When business expenses rise, the obvious counterpunch is to pass the extra costs onto consumers. But it can be a short-term fix that risks losing loyal customers.
Esta historia es de la edición May 2023 de Money Magazine Australia.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.
Ya eres suscriptor ? Conectar
Esta historia es de la edición May 2023 de Money Magazine Australia.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.
Ya eres suscriptor? Conectar
An outrageous, beautiful monopoly
Telstra's mobile business is a cash machine with few competitors, giving it the highest returns in the world.
Drop the anchor to judge value
Buying and selling decisions should be based on where a stock price is going, not where it has been.
Powering the AI boom
Beyond the software and chipmakers, where will the energy come from?
Get into life
Tucked inside super are products that can protect you from life's inevitable uncertainties.
Paths to home ownership
Taking the road less travelled can sometimes deliver unexpected benefits.
Sold! Quick ways to add value
Small, strategic changes can have a big impact on the look and feel of your home. And get you a better price on auction day.
Money lessons the kids need to know
Your children can learn a lot from your past money mishaps. Here are eight financial conversations I have had with mine.
Property-investing rules: are they likely to change?
The pressure for the government to curb the tax benefits of tax concessions, such as negative gearing and the capital gains tax discount, is unrelenting. Most recently, independent senators David Pocock and Jacqui Lambie proposed five options for paring back investment property tax concessions, with savings to the Federal budget of up to $60 billion over the next decade.
What's love got to do with it?
A rollercoaster of emotions could be driving poor crypto behaviour.
Are we ready to be cash-free?
Saying goodbye to our piggy banks too soon could leave small businesses in the dark when problems arise.
