Aussie businesses and its citizens have been battling it out since the collapse of the mining boom and the Australian housing market. There’s been a sense of negative sentiment with the economy for a number of years, however with a new year brings new opportunity. Only this time around, the economic outlook is one that looks set to benefit all Australians. Just not in the way that Australians have traditionally known.
There’s always the sense that the “Rich are getting richer” and that the lower and middle class are always left out. But since there are changes happening at the macroeconomic level, it can affect all Australians positively. The Sensis Business Index for September 2016 showed that confidence in the Australian economy remained at one of its highest levels over the past 5 years. If this continues, small businesses and ordinary working Australians are likely to get more job and income opportunities.
The drop in the Australian dollar will affect Australia's external tourism, but will attract more income opportunities for the economy.
Since matching the US dollar back in 2012, the Australian dollar has fallen back to 75 cents and financial experts predict that the dollar could fall even further. It is still a long-cry from the $0.47 cents that Australians faced back in 1998. Even if the dollar continues to fall, it will create opportunity for economic growth. Back in the late 90’s to the early 2000’s, foreign investment, job creation and tourism shot through the roof as Europeans and Americans took advantage of the low Australian dollar. With a fall in the dollar again, this could make the Australian economy interesting to foreign buyers across several sectors For example, exports in agriculture, minerals and commodities could face a boom with a foreign currency price drop.
Australia can draw on parallels to Brexit, where the fall of the Pound has attracted foreign tourists to visit the country and has further increased the amount of tourism income for small businesses.
There’s a bright future ahead for small businesses like lighting company LEDified.
There is a renewed confidence in the lighting market due to the Australian Government’s commitment to rollout sustainable lighting products to households and businesses. The introduction of State-sponsored subsidies is triggering demand for the latest in sustainable lighting technology.
LEDified has been riding the wave of success in the lighting industry and it is poised to continue under the leadership of former Victorian Premier Jeff Kennett and CEO Suren Chandrajit. Their cost-saving model for installing LED lights has not only reduced the financial strain associated with lighting costs, but is also creating more jobs within the sector.
The company has recorded revenues in excess of $30 million in 2016 and after winning The Australian Finance Review’s Fast Starters, confidence is at an all-time high.
Gina Rinehart’s land acquisition could potentially create more jobs in agriculture in 2017.
The Free Trade Agreements with China, South Korea and Japan coincide with a “dining boom” in the region, whereby Australian food exports will be in high demand. Gina Rinehart’s company, “Hancock Prospecting” purchased Australia’s largest cattle empire S Kidman and Co along with Chinese partner Shanghai CRED.
Hancock Prospecting CEO Gary Korte has said;
"Then we will be investing additional capital of $19 million to further … grow the business and take the herd size to well over 200,000 and potentially far beyond that if we are able to identify sensible acquisitions to add to the business."
It’s expected that another 100 jobs will be created in regional Australia.
2017 is poised to be an exciting year of economic growth. People and businesses need to identify the right opportunities for themselves and capitalise on the confidence that the economy will provide in the next 12 months.