Deloitte Access Economics partner Chris Richardson has given his take on what he calls a “modest” global slowdown, and where Australia stands in the current climate.
Accountants will be pleased to know that despite the slowdown of the professional services’ breakneck growth of recent years, the industry will continue to stay above average amid a “big corporate change agenda and rapid technological change”.
There are also opportunities in the healthcare sector, with Mr Richardson pointing out the increase in NDIS funding and an ageing population as signs of continued growth.
“For a while Australia’s industries rode a collective wave of strong conditions. Other than poor long-suffering retail, most sectors were doing well. Even manufacturing, the biggest loser from globalisation, was enjoying something of a renaissance,” Mr Richardson said.
“But now industry fortunes are desynchronising. The sectoral winds are changing, with a starker difference between the current winners and losers in Australia’s economy, meaning the nation is showing some modest signs of being a ‘two-speed economy’ once more.”
Among some of the sectors facing significant headwinds this year include the housing markets in Sydney and Melbourne, with the property services sector feeling the pinch as well.
The finance sector is seeing a slowdown as well, as credit continues to tighten.
“Retailers, already seeing low income growth, are now wearing the effects of weaker demand for housing-related goods, while the wholesale and transport parts of the retail supply chain face the same pain,” Mr Richardson added.
“So, depending on what sector you’re in, you might either be finding the current environment challenging, or be sailing along not understanding what people are complaining about — there is very little in the middle.”