The Year Ahead & Year In Review by CommSec.
While worries about the health of the Chinese economy will feature in 2016, CommSec expects a generally positive year for the Australian economy with economic growth in a 2.50-3.00 per cent range. Unemployment should consolidate between 5.50-6.00 percent, with potential to move towards 5.50 per cent as the economy picks up pace during the year.
The Aussie dollar is expected to fall to US65 cents early in 2016, before ending the year around US70 cents. The cash rate is predicted to remain unchanged at 2.00 percent with inflationary pressures expected to remain well contained.
The Chinese economy will likely grow by between 6.5-7.0 percent and will still contribute around a quarter of global economic growth.
CBA Executive Director Insurance and Diversified Financials Research, Ross Curran provides an outlook for the financial services sector in 2016.
CBA Chief Economist Michael Blythe takes a look at the risks & issues likely to impact the Australian economy in 2016.