Episode Details

Australia may just have side-stepped another recession by the skin of its teeth after recording a small uptick in GDP growth over the June quarter.

After an initial "miracle" V-shaped recovery, our economy did a U-turn as much of Australia was locked down at the end of the June quarter.

And economists seem united about the outcome of the current September quarter – we will be seeing a steep drop in economic output.

So what's ahead for our economy and our property markets, that's what I'm going to be chatting about with Australia's leading housing economist Dr Andrew Wilson today. And while you'll hear him give six reasons why we are optimistic about the economy moving forward, you'll also hear why we won't have the miraculous V shape recovery many were expecting.

Now if you have been a subscriber to this podcast for a while or followed my blogs or YouTube videos you'd know for the last 3 years I have recorded a weekly Property Insiders video chat with Dr Andrew Wilson. And his assessment of and forecasts for our economy and property markets have been remarkably accurate so whether you're a beginning property investor or an experienced I'm sure you'll benefit from my chat with Andrew today which is the audio of one of our recent Property Insider videos.

I'll leave a link in the show notes so you can see all the charts that support the information we'll talk about, but in general that won't be necessary – Andrew explains his position well.

I'll also be sharing my regular mindset message where I'll discuss 5 common money myths and mistakes I'm seeing many people make.

There will be a lot written in our history books about the Coronavirus pandemic, how the world changed, how we live and the economic fallout that resulted from it.

Last year there were a lot of letters being tossed out about the shape of the economic recovery from the short sharp recession Australia experienced: U, V, W, etc.

There was even talk of a Nike swoosh shaped recovery.

Well, the recession we had last year was not a normal recession.

Government lockdowns and the fear of getting sick kept consumers at home, while the shutdown of supply chains, shortages of workers, the inability to source inputs, and the sudden fall in international tourism, students and migrants devastated businesses.

Then all of a sudden it looked like we experienced a V-shaped recovery marked by a steep, dramatic decline in the economy in the middle of last year (the first half of the "V"), followed by an equally rapid upturn to pre-recession levels, (the second half of the "V").

But just look what's happened over the last few months with half of Australia in lockdown at a time that many of the government supports measures we enjoyed last year not there anymore.

So, what's next for the Australian economy and for our property markets?

These are some of the questions I'll be asking Australia's leading housing Economist, Dr Andrew Wilson chief economist of My Housing Market

Our economy lifts again and posts record growth over the year

Australia may just have side-stepped another recession by the skin of its teeth after recording a small uptick in GDP growth over the June quarter.

After an initial "miracle" V-shaped recovery, our economy did a U-turn as much of Australia was locked down at the end of the June quarter.

And economists seem united about the outcome of the current September quarter – we will be seeing a steep drop in economic output.

In today's podcast Dr. Andrew Wilson gives 6 reasons why he's confident about Australia's recovery.

1. Australia dodged a recession with strong economic growth over the last year.

Australia's economy (as measured by gross domestic product GDP) grew by 0.7% in the June quarter after rising by 1.9% in the March quarter. Over the year economy grew by a record 9.6% – admittedly of a pandemi