Textiles, e-commerce and the Australian economy: A key issue
By Nick BeattieThe Australian dollar is trading near a record low against the US dollar.
On Thursday, Australian Prime Minister Scott Morrison announced that he would increase Australia’s current account surplus by $1.3 billion over four years.
This means that the country will now have a $2.7 billion surplus over the next four years, according to the Australian Bureau of Statistics.
While there are some positives to be had from this, like higher investment in infrastructure, it’s still a pretty small increase.
According to the ABS, the average wage growth has been below 2 per cent since 2011, while average unemployment is well below the national average.
For many Australians, this means that their pay has stagnated over the past few years, meaning they can’t afford to buy anything, especially luxury goods.
And, if they’re struggling to get by, they’re likely to be in the grip of a housing affordability crisis.
With Australia’s housing market already a problem, and with the number of people living in insecure and over-priced rental properties set to increase, it makes sense that the housing market would suffer.
The Government is already proposing a property tax freeze that would see rent prices freeze in 2018.
It’s important to remember that the government is only trying to address the root causes of the housing affordability problem, so it’s difficult to say exactly what they’re going to do next.
Despite this, it is clear that Australia is still in a very precarious situation.
Australia’s housing affordability issues will only get worse over time.
Given that Australia’s overall economy is already on the way down, and the current account deficit is set to be one of the biggest in world history, it might be wise for the Government to keep their eye on the ball.
As the global financial crisis and the economic downturn continue, we should all be wary of any potential moves that may cause further damage to our economy and our future.
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