Why the Australian economy will stay strong in 2016

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In the wake of the Chinese stock market falling, American interest rates rising, and the Australian dollar falling, some commentators have predicted weak property performance for 2016. Commentary about facing a recession or similar economic circumstances to the global financial crisis are running hot.

However, as Ross Gittins, Economics Editor at the Sydney Morning Herald, has suggested this ‘doom and gloom’ is in fact overstated. While in recent decades Australia has been significantly impacted by strong economic turns from around the globe, the old saying “When America sneezes, Australia catches a cold” doesn’t seem as relevant as it used to. All signs suggest our economy is still performing very well.

Here is a snapshot of how the Australian economy is performing:


  • The latest figures showed that although the recent decline in mining was reasonably well advanced by September 2015, activity still remained well above its “normal” level.
  • Western Australian quarterly engineering construction activity is still performing extremely well with results of $10.3 billion, and the Northern Territory at $2 billion.

Foreign Trade and Export

  • A look at the latest International Trade figures shows that over the past quarter Queensland has produced a positive trade balance of $1.2 billion per month.
  • With the Gladstone natural gas venture underway with first shipments dispatched, we can expect a positive contribution in 2016.
  • More than 20 per cent of Aussie produce is sold to foreigners, which illustrates that the prospects for domestically related industries remain solid. Plus, estimates show the “non-mining economy” has been growing at the healthy rate of roughly 3 per cent per annum.

Unemployment rate

  • Throughout 2015, the number of Australian employees grew by 300,000 which is a 2.7 per cent increase.
  • This activity ultimately dropped the employment rate from 6.2 per cent to 5.8 per cent.

As an investor, it’s wise to understand the economy and the possible repercussions this may have on your portfolio. However, despite recent commentary about the Australian market’s doom and gloom, there is no immediate threat or need to reconsider investing or selling existing properties.

Contact CPS today to discuss your investment opportunities.