In this week's speech to a Sydney business economists forecasting conference, Nigel Ray, Treasury Deputy Secretary, made several key comments that are worth noting for the Australian Foodservice Market.
They were entirely consistent with our Market Outlook published last week to subscribers of Australian Foodservide - A Continuous Information Service.
Key points from the speech included:
- Growth in nominal GDP fell to 1.5% in 2014-15 which is the slowest growth in over fifty years.
- The Australian economy recorded its third straight year of below trend growth in 2014-15. This prolonged below-par growth is rarely seen outside of a recession.
- The lower exchange rate has encouraged Australians to switch from foreign to domestic tourism as well as encouraging a pick-up in demand from International visitors.
- Population figures are lower than expected - the growth in working-age population slowed to 1.5% (2 years to June 2015) which was well below the budget assumption.
- Potential GDP will grow by around 2.75% over the next 2 years - lower than the 3% in Budget estimates.