12 months ago unemployment was at 6.4%, the 12 monthly economic growth was negative (1.1%) and inflation was 0.9%. How the economy has strengthened over the last year with unemployment now far lower at 4.2%, economic growth higher at 4.2% and inflation at 3.5%! The looming Federal election mid this year will ensure that both the Liberal and Labor sides of politics maintain positive economic settings for small businesses over 2022. However, the medium term outlook into 2023 is less certain.
AUSTRALIAN ECONOMY
Main issues impacting the economy at the current time are:
- Queensland/New South Wales Floods have disrupted economic activity in these states, though going forward reconstruction will provide stimulus.
- A continual high level of commodity prices has elevated further with the Russian/Ukraine war – particularly oil and gas prices are fuelling inflation.
- Supply chain and logistics issues in international trade at this point are keeping products from China and other countries at elevated prices – there is some indication that shipping costs have plateaued recently which may ease input costs for Australian businesses over the next year.
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