Insights Forum – Post Budget Perspectives with David Robertson

13/06/2024

Our members recently gained access to a deep analysis of the current economic climate from Chief Economist and Head of Economic and Markets Research, David Robertson.

David provided his expert insights into the data involved in both the State and Federal budgets and the impacts for business on a national, state-wide and local level.

Key to David’s analysis was the challenge we face in relation to productivity. Among all the issues including global uncertainty, cost of living, inflation and housing affordability, increasing productively across all industry sectors will go a long way to easing some of the current economic head winds. Data provided shows Australia lagging behind many of our international competitors in relation to labour productivity.

Turning around our poor productively will include genuine long-term tax reform, reform in planning and regulatory frameworks, enhanced skills and education and infrastructure investment. David also referenced the investment in Quantum Computing as an enabler of increased productivity.

The Bendigo Bank’s National Chief Economist also suggest the flattening of the inflation curve, cost of living relief in areas such as energy rebates and the stage 3 tax cuts due to take effect from 1 July, will most likely see a number of interest rates cuts in 2025.

In summary, the Bendigo Bank’s top 10 predictions for 2024 largely remain unchanged and on-track following the federal and state budgets. Key among them for our regional economy is:

  • RBA rates on hold for 2024.
  • 4 cuts in 2025
  • Unemployment to track higher, upwards of 4.5%
  • Housing price increase more modest at 3.5%

David has presented to members of Committee for Ballarat every year with his annual updates and we appreciate him taking to share his insights, specifically in relation to our regional economy.