Highlights
- Australian market is stable and up, our unemployment is down, and the morale cannot be higher even during the pandemic.
- As much as the government giving stimulus to home buyers, this is not a good time to invest in property.
- Businesses that depend on the migrant population will be severely affected as seen on different CBDs nationwide.
Dr Tonmoy CHOUDHURY Lecturer, School of Business and Law, Edith Cowan University Source: Dr Tonmoy Choudhury
With the unemployment rate about to be going down to pre-COVID 19 state, the story of financial markets within Australia is not that bad compared to rest of the world. Somehow, we have prevailed in the face of the largest health crisis in the modern world. Our strict tactics mixed with our uncanny policies has protected our consumers and the economy in an unprecedented scale compare to the world.
SBS Bangla has spoken to Dr Tonmoy Choudhury, lecturer of Department of Finance and Accounting, School of Business and law, Edith Cowan University, Perth. He works in risk management in financial markets and institutions and currently working on the future of financial risk management. He explains us what can Australian consumers expect in 2021 in financial market?
Dr Tonmoy Choudhury welcome to SBS Bangla.
Thanks for having me.
Do we understand that Australia has done significantly better than its counterparts in response to COVID-19 especially in the financial markets, but is it over? Does 2021 will bring us back to the pre-COVID-19 market condition?
Thank you very much for having me over here today. Let me be very clear in my answer, no. From an academician’s and practitioner’s point of view, there is not enough data to conclude that pandemic is over both in Australian and global financial markets. However, given the absolute fantastic handling of the pandemic by the Australian federal and state authority, we are moving to 2021 on a higher note. Our market is stable and up, our unemployment is down, and the moral cannot be higher even during the pandemic. My explanation will be we will do better most probably like the pre-pandemic era given our outstanding response to the pandemic.
What about the Australian economy? How would you predict 2021 for the average working person?
Tough. The pandemic will fundamentally change our workforce. The average joe who wants to just finish their job and go back home, their lives going to change a lot. Because the home will become the new office. This will ultimately have a long changing impact on the Australian economy. For example, previously if we were more interested in fuel price, now we will be more interested in the internet price. Everyone has to skill up just to survive in this economy. I am expecting in the middle of 2021 when the stimulates going to end and the housing market goes back to normal demand-driven conditions, we will see a clear picture of the future.
To ask a simple question, where should we invest now? Do you think it is a good time to buy a house?
This is a truly tough question. My answer will be where you are right now. We can see tremendous growth in the price and a decrease in the vacancy rate in some states where others might not be as fortunate. My personal view will be western states need to wait for a period, on the other hand, easter states this is the best time. Overall, expect 2021 to be bumpy and wait for the stimulus to end.
Businesses that depend on the migrant population what will be their financial outlook in the next year or so?
That will be bad. One of the most unfortunate consequences of the pandemic is the closed border. Businesses that depend on the migrant population will be severely affected as seen on different CBDs nationwide. To add salt to the cut, universities will suffer given the reduction in international students. Going forward, this will be the most important issue for the Australian economy to bring the students back to boost the local business. We did the same as GFC and it worked magnificently.
In one line what will be your advice for our listeners?
Think before you spend, have a financial plan, and upskill your portfolio.
Thank you, Dr Tonmoy Choudhury, for your time, we hope SBS Bangla audience will be benefitted from your valuable insight about the current scenario of Australian economy.
Thank you.
To listen the whole conversation in Bangla please click the audio player above.
Read More:
