Australia’s economic growth in 2017 is likely to be similar to growth seen throughout calendar year 2016, according to stockbroker CommSec.
The company said it expected economic growth for the coming year to sit around the 2.25–2.75 per cent, “similar growth as occurred in 2016”, with the ‘full employment’ rate of growth sitting at around 2.75–3 per cent.
Unemployment should crystalise around 5.25 to 5.75 per cent, the company said.
Inflation is expected to edge up towards 2 per cent, but CommSec cautioned that “globalisation will continue to cap growth of prices”.
CommSec said the share market should also record modest growth in 2017, with share prices and dividends both expected to rise by around 4 per cent.
“The main focus will be on the US and the economic direction set by the new administration. The transition of the Chinese economy will continue with bottom-line growth near 6.5 per cent,” the company said.
“Nominal growth of the domestic economy will be around 4-6 per cent, limiting profit growth and thus sharemarket returns. The All Ordinaries is expected to end 2017 between 5,850-6,100 points.”