Powered by MOMENTUM MEDIA

Australia’s competitiveness being ‘eroded’

Reporter
— 1 minute read

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.

Advertisement
Advertisement

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

 

 

Australia’s competitiveness being ‘eroded’
ID logo

related articles

  • JP Morgan partners with Calastone

    JP Morgan Asset Management has signed on to a new service from global funds network Calastone, introducing automated settlements to its Morg...

  • Bendigo provisions $143m

    The bank has taken a grim outlook on the COVID-19 crisis and has provisioned for downside economic scenarios. ...

  • MLC unveils new advice business

    MLC has announced a new licensee network for self-employed advisers and advice businesses as it attempts to create a “more focused and sus...

promoted stories

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.