Quarterly Economic Outlook – August 2016

Quarterly Economic Outlook – August 2016

KPMG’s Quarterly Economic Outlook for August 2016 provides forecasts on the Australian and global economies.

Partner, Chief Economist

KPMG Australia

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Power pole at Port Phillip Bay

KPMG’s Quarterly Economic Outlook for August 2016 provides forecasts that the Australian economy will grow at 2.9 percent in 2016, with global growth at 3.0 percent and 3.3 percent for 2016 and 2017 respectively, slightly lower than the IMF forecasts of 3.1 percent and 3.4 percent.

Key insights

  • The Brexit vote has increased global uncertainty and is impeding the fledgling recovery in the world economy.
  • Declining business investment continues to be a drag on economic growth, and is anticipated to continue into FY18.
  • State Government debt, including unfunded superannuation liabilities, is growing faster than either Commonwealth Government or Local Government debt.
  • While the economy is improving, employment growth is not occurring at a rate strong enough to make a major impact on Australia’s unemployment levels.
  • The under-utilisation rate of employed people is now at its highest level since the ABS survey began in 1978, with young workers aged 16-24 years recording under-utilisation between 2 to 3 times higher than older workers.

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