How a weak economy and low house prices can mean it could be YEAR for your next pay rise
- KPMG expects the economy, house prices remain weak for another three years
- It also predicts that wages will remain the same as labor demand in order to remain subdued
- Accounting giant has revealed bleak predictions between now and the end of 2022
It is unlikely that Australian workers will soon get a pay raise with the economy and house prices will remain weak for at least three more years.
Australia's economic growth is already at its weakest level since the global financial crisis ten years ago.
It is unlikely that it will accelerate much between now and the end of 2022.
It is unlikely that Australian employees will soon receive a wage increase with the economy and house prices will remain weak for at least three more years (photo is a stock image of a waitress)
The growth rate of Australia's gross domestic product of 1.8 percent in the year to March was already the slowest since 2009.
Accounting firm KPMG expects official data for the June quarter to show that economic growth is slowing down even more to 1.4 percent, despite a series of interest rate cuts that have brought cash prices to a record high of one percent.
By the end of 2022, it expected Australia's annual growth rate to reach 2.6 percent, a level well below the long-term average of three percent since the last recession in 1991.
KPMG Australia & # 39; s chief economist Dr. Brendan Rynne said that while 300,000 jobs were created in Australia last year, leading economic indicators suggested that labor demand remained weak.
His quarterly economic report on Australia also predicted that unemployment would rise from 5.2 percent now to 5.4 percent in 2021, as wage growth remained weak for record time.
Dr. Rynne said the Reserve Bank of Australia was likely to lower interest rates by the end of the year, raising the cash rate to a new low of 0.75 percent.
Australia's gross domestic product expansion rate of 1.8 percent in the year to March was already the slowest since 2009. Accounting firm KPMG expects official data for the June quarter to show that economic growth is slowing even more to 1.4 percent
& # 39; In the short term, household consumption growth is expected to remain subdued – due to low employment growth, negative welfare effects associated with falling house prices and marginal real wage growth, & # 39; he said Monday.
While CoreLogic real estate and Domain Group real estate companies expect the Sydney and Melbourne housing markets to recover from 2020 due to stronger auction results, KPMG was less optimistic.
& # 39; Housing investment is expected to continue to fall until 2022 when growth becomes positive & # 39 ;, according to the quarterly overview of Australia's economic outlook for KPMG.
Since the peak in 2017, the average house price of Sydney fell by a record of 17.4 percent, while the equivalent values of Melbourne plummeted by 14.8 percent, figures from CoreLogic show.
The KPMG quarterly economic report on Australia also predicts that unemployment will rise from 5.2 percent now to 5.4 percent in 2021, as wage growth remained weak for record time
. (TagsToTranslate) Dailymail (t) news