Seven Group stays cautious and can wait to see if the RBA adjusts its inflation goal. Delivering the present goal in an surroundings following document expansionary insurance policies is just not achievable with out materials financial ache. In our view, the goal is outdated and under long-term averages. We count on we might want to handle a interval of upper inflation and that focus on stays a very powerful challenge for the RBA to think about.

Matt Comyn, Commonwealth Financial institution

The economic system will proceed to sluggish in 2023 because the impression of already introduced will increase within the money price proceed to move via. By the second quarter, roughly 70 per cent of the impression on family money flows could have been felt, with this rising to roughly 90 per cent by the tip of 2023 as extra fixed-rate mortgage phrases expire.

The impression of rising costs and rising charges will proceed to be inconsistently felt. We’re monitoring a variety of indicators, together with spend patterns, sentiment, financial savings buffers, employment, wages, and stress in our portfolio, to supply an image of the combination and localised efficiency of the economic system.

The RBA may be very conscious of the danger of overtightening. We really feel far more optimistic concerning the outlook for our home economic system in comparison with many different components of the world, such because the US, Europe or the UK.

Jeanne Johns, Incitec Pivot

The Australian economic system has grown considerably over a lot of the second half of 2022, albeit some early indicators of slowing are beginning to seem. All the symptoms are that Australia’s financial development general is about to sluggish in 2023.

General, document commodity costs and a continued demand for labour will make it troublesome for the RBA’s rate of interest hikes to regulate inflation.

There are two elements that might sluggish the economic system additional: the impression of the worldwide economic system, and the impression of excessive pure gasoline costs and electrical energy within the home market, which is putting our industrial base in danger.

As a rustic with excessive power costs, we threat hollowing out Australian manufacturing and exporting our jobs to international locations with reasonably priced power.

Mike Henry, BHP

Mike Henry has been chief government of BHP for nearly three years. 

We count on exterior uncertainty within the yr forward, from financial slowdown in superior economies, to geopolitical tensions, inflationary pressures, tight labour markets, provide chain constraints and, in fact, COVID-19.

We threat holding ourselves again if we don’t deal with globally uncompetitive fiscal settings, falling productiveness and training ranges, and rising inflation and expertise shortages. On the nationwide stage, the primacy of enterprise bargaining needs to be protected and mining excluded from multi-employer bargaining, whereas in Queensland, the unplanned royalty improve needs to be repealed.

Australia’s greatest shot at long-term financial success is to pursue an aggressive development agenda constructed on a extra diversified economic system. The problem for Australia is that we’re not seeing new industries emerge to diversify and strengthen the nationwide economic system to the extent or on the tempo required to maintain transferring the economic system ahead. We want development throughout all sectors and in new companies to broaden and deepen Australia’s financial base.

On price range forecasts, we proceed to notice that the technical assumptions on commodity costs are fairly pessimistic as near-term targets. Overly conservative views on commodity costs feed into the phrases of commerce and nominal GDP, that are key for income.

Mark Fitzgibbon, NIB Group

I’m anticipating inflation to ease as power costs ease, manufacturing recovers and provide chains open up. I’ll be shocked if we don’t obtain no less than 1.5 per cent development. I believe inflation is extra about price push than demand pull, so blunting demand with greater rates of interest will solely achieve this a lot.

Darren Steinberg, Dexus

Regardless of the Australian economic system being higher positioned than most different economies, we’re taking a cautious strategy to 2023. We imagine Australia’s financial state of affairs will worsen earlier than it will get higher, and are targeted on lowering gearing and positioning ourselves for a troublesome 2023.

Ross McEwan, NAB

The economic system has been extremely resilient this yr, with enterprise circumstances remaining properly above its long-run common. There’s little doubt there are headwinds for households and for the economic system typically as we enter subsequent yr, and we count on this may see the economic system document GDP development of slightly below 1 per cent in 2023 and unemployment to rise to round 4.2 per cent.

I believe for many individuals this may really feel like a major slowdown, however we’ll nonetheless see development and Australia may be very well-positioned to handle via elevated inflation and better rates of interest in comparison with different international locations, and so are the overwhelming majority of our prospects.

Robert Spurway, GrainCorp

Regardless of the uncertainty of upper inflation and cost-of-living pressures, tight labour markets and unstable power costs, I stay optimistic concerning the outlook for the Australian economic system.

Australia produces assets, meals and power that the world wants, and now we have an enviable monitor document of resilience. Forecasting isn’t a simple activity, however the RBA have the benefit of a robust place to begin and alternative to look at the impression of price rises and financial response in abroad markets, the place disruption and inflationary stress began sooner than in Australia.

Jayne Hrdlicka, Virgin Australia

It’s troublesome to foretell how 2023 will pan out given the varied elements at play. Whereas shopper sentiment surveys and main indices proceed to level in direction of weak financial development, I don’t imagine that can be felt evenly throughout the economic system.

For instance, in aviation, ahead bookings from each enterprise and leisure company stay extraordinarily sturdy. This isn’t stunning given what now we have all been via in the course of the worst of our COVID lockdowns. Whereas shopper spending could tighten in some areas, journey and leisure is prone to stay extra resilient in private budgeting.

Vik Bansal, Boral

Vik Bansal of Boral.  

Australia is just not alone in feeling the pressures of worldwide inflation, rising rates of interest, hovering power prices and provide chain disruptions. These robust circumstances will proceed into 2023, and whereas we’re displaying some early indicators of resilience, I believe it’s probably our economic system will proceed to face substantial headwinds into subsequent yr.

Graham Chipchase, Brambles

From our international perspective, Australia has carried out higher than comparable economies and proven nice resilience. Whereas it’s unclear if Australia can keep away from a technical recession, I believe it heads into this stage of the financial cycle with some benefits. After all, a world financial downturn gained’t hit all sectors and industries equally. We all know shopper staples maintain up comparatively properly via recessions, which advantages companies like ours.

Peter King, Westpac

We count on development to sluggish, however that’s essential to get inflation beneath management. Our economics workforce predicts GDP development will sluggish to round 1 per cent.

We expect the impacts can be uneven. One factor I watch intently is unemployment. It should probably rise over the approaching yr, with our workforce predicting 4.5 per cent, however even then, it could nonetheless be at historic ranges.

The vital factor is prospects are typically in good condition, however the full impression of the rate of interest rises gained’t be felt till the brand new yr. The financial institution is in place to assist prospects get via a few of the challenges that the present surroundings is producing.

Alexis George, AMP

Whereas we count on the economic system will proceed to sluggish into subsequent yr, our home view is that we’ll narrowly keep away from a recession. Our economists count on GDP development will sluggish from round 3 per cent this yr to round 1.5 per cent subsequent yr, which is according to the federal price range forecast. We imagine shopper spending would be the principal driver of the slowdown, with individuals more and more feeling the pinch from greater rates of interest and cost-of-living pressures.

We don’t count on a recession, regardless of the danger of aggressive tightening by the RBA and international central banks. General, whereas we see development slowing, a few of the extra optimistic drivers are that the enterprise funding outlook is strong, the Australian greenback is prone to fall if the worldwide economic system will get too weak, immigration is rebounding, inflation could also be much less of an issue domestically, and the RBA seems to be just a little extra cautious on price hikes.

Rob Scott, Wesfarmers

Wesfarmers chief government Rob Scott.  Brook Mitchell

I believe 2023 is prone to be a more difficult yr for the Australian economic system given the impression of elevated inflation, rising rates of interest and the danger of a slowdown in main international economies. Value-of-living pressures, mixed with rising prices of doing enterprise, are prone to have an effect on demand in 2023. Nonetheless, Australia is ranging from a robust base, with low unemployment and gathered financial savings, which gives some capability to navigate harder circumstances.

Australia is just not proof against the dangers of a US or European recession or a slowdown in China. Mixed with geopolitical dangers, I subsequently see the dangers internationally as being key ones to observe within the yr forward.

I see industrial relations as an rising threat in 2023 for the Australian economic system, with multi-employer bargaining reforms being applied including complexity to labour markets, on the identical time the economic system is slowing down. There are different IR reforms that needs to be prioritised that may assist wage development, participation and productiveness resembling award simplification, however these don’t appear to be priorities.

Amanda Lacaze, Lynas

The economic system has been remarkably resilient in current occasions, and it seems that many shoppers retain spending energy probably primarily based on the rise in financial savings via the pandemic.

For Lynas, the extra vital points relate to the potential financial impact of current and potential coverage modifications on the mining business. There are a selection of insurance policies being prosecuted which have the potential to create vital disruption and price inflation … together with the IR laws and dialogue of elevated taxation. Lynas is investing over $1 billion within the Goldfields area in Western Australia, and we’re seeing vital price escalation on these main tasks.

Lynas sells all product into international markets and … demand for uncommon earth supplies stay sturdy, and sectors resembling electrical automobiles and wind power are rising.

Steve Vamos, Xero

All companies are working in a posh surroundings, and it’s exhausting to see that altering in 2023. Xero’s knowledge exhibits Australian small companies are adjusting to the present macroeconomic surroundings, reporting wage and jobs development from this time final yr, however they’re nonetheless going through challenges in accessing expertise, and financial uncertainty stays.

Shayne Elliott, ANZ

After the previous couple of years, it’s positively troublesome to foretell what the following few will appear to be.

This yr we’ve seen a lot of challenges emerge throughout the financial surroundings, with rising inflation and modifications to rates of interest. That is impacting completely different sectors and components of society in several methods. Enhancing productiveness will assist to alleviate these pressures and each authorities and business have to concentrate on innovate to drive development and stay aggressive. We’ve heard from our international prospects that the price of doing enterprise in Australia may be excessive, so we have to guarantee there are insurance policies in place that assist present certainty and in flip improve funding each nationally and internationally.

Marnie Baker, Bendigo & Adelaide Financial institution

As 2023 approaches, a mixture of rising inflationary pressures, rising rates of interest and wages, a decent jobs market and common international uncertainty, means the financial outlook stays complicated, difficult and in flux.

The financial institution expects tightening to proceed till inflation is contained. This can be difficult for households, companies and the property market, nevertheless, it’s excellent news for depositors and self-funded retirees who’ve needed to make do with low returns on their deposits.

The Australian economic system stays an financial outperformer primarily based on a variety of metrics, together with GDP development, a 50-year-low unemployment price, a major commerce surplus, and a comparatively low web debt-to-GDP ratio.

Nonetheless, within the brief time period, our major problem can be a slowing in financial development because the impression of rising inflation and better pursuits are felt.

Kelly Bayer Rosmarin, Optus

Optus chief government Kelly Bayer Rosmarin. Louie Douvis

I’m an optimist and see the advantages from extra immigrants arriving into Australia, elevated journey, and the innovation that outcomes from the revival in face-to-face collaboration. I imagine that the response and creativity of Australians and our companies could shock us with upside.

David Koczkar, Medibank

There are ample challenges for an economic system with low development, excessive rates of interest and excessive inflation. Whenever you mix this with unpredictability within the international economic system, the danger will increase.

Whether or not it hits forecast or not, it’s clear that households can be beneath some stress. That’s why we’re targeted on delivering extra alternative, worth and management to our prospects and doing our bit to take some stress off their hip pocket.

Damien Nicks, AGL Power

We’re in an fascinating state of affairs the place unemployment is structurally so low that even when the economic system slows, it’s unlikely we’ll see unemployment rise too steeply, and subsequently it’s unlikely we’ll see the key employment-related points which have occurred in prior slowdowns.

It will likely be vital to additionally hold an eye fixed out to make sure that labour escalation doesn’t get uncontrolled when and if the economic system slows and ranges out.

The labour market continues to be difficult. That is significantly evident in sectors resembling expertise and with regard to the technical expertise required in our business.

Mike Sneesby, 9 Leisure Co

There isn’t a doubt that inflationary pressures and rising rates of interest will impression shopper spending. It’s affordable to count on that this may move via to promoting markets as consumer-facing companies take into consideration their advertising and marketing methods and advertising and marketing expenditure.

Elliott Rusanow, Scentre Group

We count on the Australian economic system to proceed its strong efficiency into 2023, underpinned by the well being of the patron. Unemployment stays low, financial savings ranges are wholesome and nonetheless rising, and wage development and immigration are each selecting up. As an economic system, Australia enters 2023 in strong well being.

We’re on monitor to finish the best variety of leasing offers this calendar yr since Scentre Group was established in 2014, which is a really sturdy endorsement for the arrogance our enterprise companions have within the Australian and New Zealand economies.

Alastair Symington, Blackmores

We count on that the Australian economic system will carry out higher than different economies within the area heading into 2023 because the tight labour market will drive up wages and elevated demand continues into the primary half of the yr. The priority is that we see inflation proceed to rise, resulting in additional rate of interest will increase into subsequent yr.

Paul Perreault, CSL

CSL CEO Paul Perreault. Eamon Gallagher

I believe 2023 is shaping up as a pivotal yr for the worldwide economic system, and Australia isn’t any completely different. Increased rates of interest ought to begin to impression inflation, and there’ll probably be stress on home demand which ought to begin to normalise. Robust international demand for Australia’s pure assets ought to considerably offset this, so we imagine 1.5 per cent development is an affordable forecast.

Whether or not the headline development price slows just a little under this forecast or not, we agree that the tempo of financial development will sluggish from the buoyant, above-trend tempo of CY22. That is one thing we put together for.

Susan Lloyd-Hurwitz, Mirvac

Mirvac chief government Susan Lloyd-Hurwitz  Janie Barrett

We expect Australia may be very well-placed in comparison with different international jurisdictions. And whereas we put together to navigate short-term cyclical pressures, we’re very aware that the place to begin of the economic system is robust. For instance, each unemployment and underemployment are on the lowest stage in many years, and each households and companies have constructed up sound capital buffers. Rates of interest, whereas rising, stay low by historic requirements.

Equally, we’re aware that longer-term structural drivers are nonetheless in play. We see provide/demand imbalances changing into extra pronounced within the residential sector, abroad migration returning to pre-pandemic ranges rapidly – boosting development in main cities – and the exponential development of accountable funding capital of current years persevering with its upward climb.

Frank Calabria, Origin Power

The Australian economic system has been remarkably resilient within the face of worldwide financial challenges, largely due to the energy of our exports. There’s now a nice balancing act, with fiscal and financial levers needing to be executed successfully in a rising inflationary surroundings, with a slowdown looming for a lot of of our buying and selling companions.

Steve Donohue, Endeavour Group

There’s a whole lot of hypothesis about what 2023 will deliver for the Australian economic system, and clearly there are nonetheless a whole lot of unknowns. Whereas we all know it would take a while for the total impression of inflation and rising rates of interest to have an effect on households and spending, going into the festive season we’re nonetheless seeing plenty of exercise. Because of this, it’s exhausting to see the economic system slowing greater than what has been forecast, but when the final couple of years have taught us something, it’s that we should be ready for something.

Adam Watson, APA Group

There’s all the time rather a lot to be optimistic about, however clearly there are some apparent uncertainties that may proceed to lurk into 2023, together with inflation, rate of interest pressures, and ongoing shocks from the battle in Ukraine.

In Australia, we come from an underlying place of privilege, with comparatively excessive dwelling requirements and low unemployment, however we are able to’t grow to be complacent and lose sight of the necessity to concentrate on our susceptible communities.

When it comes to what may be performed inside power given this heightened international uncertainty, we have to guarantee as a nation that we proceed to speculate, not solely in renewables, however in home gasoline provide to maintain power costs low and guarantee we retain power safety, and to speed up the decarbonisation of our power system.

Vicki Brady, Telstra

It’s clearly a time of nice uncertainty. I gained’t add to that, besides to say that from our perspective, telecommunications and the very important connectivity it gives is changing into increasingly more vital.

That’s vital for Telstra as demand for our services and products has by no means been greater. It’s additionally vital for the economic system – not solely is it serving to our prospects and the nation extra broadly grow to be extra environment friendly and increase productiveness – connectivity mixed with expertise advances are additionally serving to us reply to a few of our greatest challenges, like local weather change and international inequalities.

Telstra CEO Vicki Brady.
 Dominic Lorrimer

Brad Banducci, Woolworths

Households have been way more resilient than many predicted all through 2022, so I’m hesitant to make predictions for 2023. There isn’t a query rate of interest will increase will current a problem for a lot of households, and we’re very targeted on doing our bit to assist Australian households handle their weekly price range.

Andrew Harding, Aurizon

In our view, the Australian economic system in all fairness resilient, and this has been demonstrated via the pandemic. In our sector, important provide chains have continued to function and the important thing sectors we serve, particularly assets and agriculture, proceed to see sturdy demand from the Asia Pacific. We see this demand sustaining for a very long time to come back, given our proximity to those quickly rising economies, the standard of Australian commodities, and the energy of our provide chains.

Owen Wilson, REA Group

Basically, the Australian economic system stays wholesome, and I believe we’ll see this underlying energy proceed as we enter 2023. However it’s additionally clear that some components of the economic system will face headwinds because the impacts of consecutive rate of interest rises, greater inflation and softening shopper sentiment proceed to move via. Specifically, it is going to take time for the total results of rising rates of interest to grow to be obvious within the economic system and on inflation.

From a property perspective, we’re persevering with to see wholesome demand, though there’s a stage of warning from each patrons and sellers who’re in search of larger certainty on the charges cycle following speedy successive rate of interest hikes this yr. We count on to see exercise choose up as soon as there’s extra readability that now we have reached, or are approaching, the highest of the rate of interest cycle.

Robust underlying fundamentals stay for the property sector, and the economic system extra typically, with unemployment at very low ranges and rising migration. Migration into Australia is additional fuelling demand for housing, initially with rental properties, however long run it is going to drive demand for brand spanking new and established properties.

Tarun Gupta, Stockland

We count on the economic system to sluggish subsequent yr in response to greater rates of interest and power costs and the general greater cost-of-living pressures. As well as, housing affordability and provide of rental properties is a major challenge for a lot of locally.

Increased than anticipated rates of interest, additional geopolitical instability offshore, and the ensuing greater power costs and disrupted provide chains stay key dangers to subsequent yr’s forecast.

Inaki Berroeta, TPG Telecom

With inflationary pressures, the continuing battle in Ukraine and the hangover of COVID, 2023 is prone to be a bumpy yr. Nonetheless, we’re cautiously optimistic the economic system will enhance throughout late subsequent yr as inflation begins to come back again to regular ranges.

Steve Johnston, Suncorp

Given the steep improve in rates of interest in 2022, we might count on the economic system to reasonable via 2023. How a lot it slows will depend upon a lot of elements, together with the magnitude of any future price will increase and the way the worldwide economic system performs, significantly our key buying and selling companions.

There are already some indicators of slowdown, with credit score urge for food and development in deposits beginning to sluggish, that are mirrored in falling home costs and constructing approvals.

Suncorp chief government Steve Johnston. Paul Harris

The rising price of dwelling will probably stay a problem, with households saving much less and shopper and enterprise sentiment softening.

Round 23 per cent of all Aussie residence loans – price nearly $500 billion – are presently on fastened charges and can swap to variable charges by the tip of 2023. These debtors will expertise vital rate of interest will increase which is able to additional squeeze family disposable incomes. We subsequently see a threat that financial development subsequent yr slows to lower than the 1.5 per cent forecast within the federal price range.

Nick Hawkins, IAG

The Australian economic system is going through some challenges within the yr forward. Inflation is anticipated to stay a problem, though there are encouraging indicators from some areas that there can be some levelling out in 2023.

The decrease than anticipated international development in China, the US and Europe, which is impacting Australia’s commerce and funding, is a threat issue and will have an effect on our economic system.

We presently count on Australia’s actual GDP development over 2023 to be round 2 per cent. Nonetheless, we’re navigating an unsure macro surroundings, so these expectations may change.

Graham Kerr, South32

We count on international development to sluggish via 2023, creating challenges for some superior and rising economies. Elevated rates of interest and inflation will act as headwinds and convey some nations nearer to recession, however Australia is prone to be better-placed economically than another components of the globe, thanks partially to the relative energy of the mining and assets sectors and broad-based low unemployment.

A lot will depend upon coverage and financial settings within the US, demand from China, the size of the tragic battle in Ukraine, and the prospect of occasions resembling additional COVID-19 outbreaks contributing to a deterioration of enterprise circumstances.

Mark Schubert, Cleanaway

The RBA has raised rates of interest via the second half of 2022 to curb demand and rapidly management inflation. This can be a troublesome stability and there’s the danger … in an overcorrection. Nonetheless, given persisting productiveness constraints from the undersupply of labour and the pipeline of private and non-private tasks beneath approach – together with these required to transition the economic system to scrub power – it’s considerably unlikely that GDP falls materially under 1.5 per cent on an annual foundation in 2023.

After all, rates of interest are only one a part of the story, and development and productiveness via 2023 and past may also depend upon all coverage settings – not simply the RBA’s goal money price, but additionally importantly carbon and power insurance policies and, critically, power pricing that assist investments and companies via the financial cycle.

Matt Halliday, Ampol

The outlook globally stays unsure. We see inflation as a major threat to the worldwide and home economic system, and we’re watching the rate of interest surroundings intently, significantly as we overview and assess deliberate capital funding. For our sector, whereas it has been encouraging to see a current fall within the international oil value, we count on ongoing volatility in gas costs throughout 2023.

Sanjeev Gandhi, Orica

As a key driver of volatility and uncertainty for the worldwide economic system, inflation would require efficient financial insurance policies to mitigate this vital threat. Company tax reforms, cordial industrial relations, and incentives for innovation are essential enablers for productiveness positive factors aligned with wage development and cost-of-living will increase. These efforts should be supported with focused authorities funding and tax measures for innovation, R&D and fast-tracking new expertise and automation.

Long run, Australia ought to concentrate on diversifying its earnings and export profile and proceed to put money into its home industrial and manufacturing base. Funding in infrastructure to facilitate an orderly power transition is crucial to making sure the Australian economic system is resilient into the longer term.

Dig Howitt, Cochlear

We have to purpose to create and maintain an surroundings that pulls funding and encourages innovation. A key alternative Australia faces is to maintain and enhance the competitiveness of our economic system in order that we generate enough productiveness enchancment to drive greater actual wages. The important thing threat is that we don’t enhance productiveness after which development is prone to sluggish.

Steve Cain, Coles

Coles chief government Steven Cain. Joe Armao

Whereas there is no such thing as a doubt many Australian households and companies will face difficult occasions, we’re general optimistic concerning the resilience of the Australian economic system and, specifically, non-discretionary sectors like supermarkets. Within the VUCA ( volatility, uncertainty, complexity, and ambiguity) world we live in, there’s threat in how international circumstances will impression Australian export markets.

Meg O’Neill, Woodside Petroleum

Woodside is just not able to take a position on any impression the RBA might need on the Australian economic system. As an oil and gasoline producer with a world footprint of multibillion-dollar, multi-decade, multi-generational tasks, our focus is international macroeconomic circumstances. Based mostly on international circumstances, we anticipate the broad-based international financial slowdown will move into 2023, albeit with development persevering with.

Paul Graham, Australia Put up

The outlook for the Australian economic system is understandably patchy as we proceed to be buffeted by international forces which might be affecting power costs and provide chains. Added to this, extra intense pure disasters fuelled by a altering local weather imply the price of doing enterprise is prone to proceed to extend.

I don’t assume now we have seen the total results of inflation hitting the economic system but and particularly the impression of rising power costs and mortgage charges. This, coupled with softening shopper confidence, will probably result in a slower second half. There’s nonetheless some underlying energy within the retail sector.

Richard White, WiseTech World

It’s vital not to consider the economic system as homogenous and to notice that not all enterprise and industries are the identical by way of resilience, development and worth.

The tech business is main the economic system in some ways and creating productive, helpful, and highly effective enhancements to the companies, to people, and to the world. The Australian tech business is properly established however has a whole lot of upside potential that’s much less to do with inflation, rates of interest or the common of financial development.

Once we listed in 2016, the entire tech a part of the ASX/S&P 200 index was about 3 per cent, immediately it’s about 9 per cent of the index. Whenever you evaluate this to the US indexes, tech accounts for 27 per cent, so there’s nonetheless a whole lot of upside alternative.

Australia is a superb place to do enterprise. It’s a wise nation, we’re a challenger economic system, now we have a robust society, training system, and an amazing system of legal guidelines.

What a tighter economic system and better rates of interest does is transfer the main target to top quality, sturdy, worthwhile companies that don’t want frequent new rounds of capital elevating to remain in enterprise.

Renato Mota, Insignia Monetary

The economic system is about to sluggish in 2023 because the lingering results of COVID-19 on enterprise is worsened by a variety of ongoing elements, together with excessive inflation, rising rates of interest, and the battle in Ukraine, which is weighing on financial development amongst our buying and selling companions.

Key sources of uncertainty in relation to the outlook embody the impact of upper dwelling prices and weaker home costs on family spending, in addition to the potential for a bigger-than-expected decline in international development, and the doable knock-on results of a sharper-than-expected downturn in a serious economic system resembling China.

Geoff Culbert, Sydney Airport Company

From our perspective, we’re not seeing any slowdown in demand for air journey, however anecdotally the annual household vacation was all the time the very last thing to go by way of discretionary spending. Airfares are unsustainably excessive and ultimately that may chunk. We want extra plane capability again within the system to deliver airfares down.

Tim Ford, Treasury Wine Estates

With inflation and cost-of-living pressures anticipated to proceed all through 2023, I anticipate the Australian economic system will reasonable earlier than returning to development due to its sturdy fundamentals.

With unemployment forecast to stay low into 2023 and cost-of-living aid and financial strengthening via training and workforce participation on the federal price range agenda, I’m optimistic concerning the medium- and longer-term outlook.

Historical past tells us that the wine class is comparatively resilient in occasions of financial uncertainty.

Jonathan Davey, Tyro Funds

Continued excessive inflation could have an more and more vital impression on family buying energy in 2023. Coupled with current and ongoing rate of interest will increase, I count on that we’ll see a gradual slowing of the Australian economic system, almost certainly within the second quarter of the 2023 calendar yr. This could imply the federal government’s estimated FY24 development forecast of 1.5 per cent, down from simply over 3 per cent this yr, can be met.

Sue van der Merwe, The Lottery Company

There are apparent challenges for the economic system by way of inflation, power costs and rising rates of interest, which is able to construct as we transfer into 2023. We haven’t seen any indicators of this impacting demand for our merchandise. Lotteries is a defensive sector that has historically been very resilient all through completely different phases of the financial cycle.

Shemara Wikramanayake, Macquarie Group

Regardless of financial headwinds, development in Australia stays comparatively strong as 2022 involves an finish, with Australia better-placed than many different markets given the combo of our financial exercise. Dangers stay with central banks globally targeted on managing inflation, which is able to imply additional price will increase – albeit at a slower tempo than in 2022, given early indicators that value development is moderating.

Mark Collette, EnergyAustralia

Regardless of the provision chain and inflationary pressures in 2022, the Australian economic system is performing fairly properly in comparison with different international locations, with unemployment, specifically, very low. Rising rates of interest and cost-of-living pressures are prone to sluggish development in 2023. Equally, very low unemployment ranges are additionally prone to sluggish the speed of funding from a individuals do-ability perspective.

By Editor

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