Banking News

CBA Maintains Positive Economic Outlook

(04 January 2020 – Australia) The economic and market outlook for Australia in 2021 is looking more positive, according to Commonwealth Bank’s chief economist Stephen Halmarick.

While the spread of COVID-19 had undoubtedly had a significant impact on the Australian economy, financial markets, and monetary and fiscal policy, the implications have pleasingly been less severe than originally predicted according to the Bank’s economics unit. Looking ahead, CBA predicts 2020 would likely be the weakest year for the global economy since World War II,  but 2021 is expected to be a better year. Heading into 2021, Mr Halmarick said the key areas to watch would be the diplomatic relationship between Australia and China and its impact on our trade, as well as the effects of climate change and climate change policy on the Australian economy and financial markets.

“Australia has done a better job than just about any other nation in controlling the spread of the virus. This, combined with fiscal and monetary policy support being provided to the economy, and the role played by the Australian banking system, means the economic impact of COVID 19 has been less severe in Australia than many other nations, and less severe than initially expected” Mr Halmarick said.

“To be sure, Australia’s 30-year run without a recession has come to an end, and the human toll of the sharp rise in the unemployment rate has been very real. But, the outlook for Australia is improving” Mr Halmarick added.