What NAB’s Chief Economist Says About the Australian Economy

Louise Lucas with Alan Oster, Chief Economist from NAB Group

Today I heard an economic update from Alan Oster, Chief Economist from NAB Group. He was very optimistic overall on the state of the Australian Economy from the weekly stats they receive. Consumer spending, while diverting to petrol, is still high, business banking is very strong from small and medium businesses, and cash flows are good from consumers. Unemployment he expects to drop as low as 3.5% when there is anticipated to be greater wage increase pressure, even if migration has increased.

Interest rates are expected to increase over the next 12-18 months by up to 1% and should world events not change (so no Black Swan events) house prices could possibly pause and retreat by up to 10% but he said as they have risen over 20% this past year, that is not a major drop. Prices currently are flatlining in Melbourne & Sydney, still increasing in Brisbane. If you want to know more, please give me a call on 0412 709200.