SEARCH
High taxes and an “inefficient” labour market are impacting Australia’s competitiveness on the global stage, according to Fiducian.
The country’s deteriorating competitiveness is evidenced by the contraction in the economy – the first seen in Australia in five years – said Fiducian investment manager Conrad Burge.
“The country’s international competitiveness has been eroded in recent years by a move back towards an inefficient, union-dominated labour market in some sectors, relatively high corporate tax rates and over-regulation that has pushed up costs, while a stubbornly high currency may require further reductions in official interest rates,” he said.
Fiducian noted the Australian share market, like those in the UK and Japan, had fallen by just under 1 per cent through January, with data from the ASX showing a 0.8 per cent decline in the value of the All Ordinaries Index.
The ASX’s activity report for January also said expected future volatility, measured by the S&P/ASX 200 VIX, rose from an average of 11.0 per cent to 13.1 per cent.
Read more:
AMP alters approach to authorised representatives
Fixed income remains expensive: Morningstar
Investors poised to reduce cash holdings
Data undermines case for industry fund changes
RBA unlikely to cut rates: AMP Capital
Stimulate new ideas. Stimulate new thinking. Top up your CPD and hear from industry experts with InvestorDaily’s Knowledge Centre. Keep up to date with the latest trends and reforms, all while adding to your CPD. Explore the knowledge centre Knowledge Centre now.
The investment management group has downplayed its profit expectations ahead of reporting season but says it is “continuing to build on st...
Despite unemployment falling to pre-pandemic levels, the central bank still thinks it’s too early to count its chickens on the success of ...
The US Federal Reserve has taken its first steps towards raising interest rates as the domestic economy powers ahead in COVID recovery mode,...
Get notifications in real-time for staying up to date with content that matters to you.
Read More
