Economic and Market Outlook – January 2024

The information in these articles is current as of 1 January 2024.

Welcome to our latest Economic and Market Outlook – January 2024.

This edition covers the following topics:

International economy

There are positive signs emerging after a challenging spell of slower growth and tighter monetary policy as the global economy, led by the US, is showing signs of easing inflation without a drastic spell of economic weakness. Government stimulus and excess savings continue to act as important buffers and see us upgrade our outlook on the global economy. Learn our views on the international economy below.

Australian economy

The Reserve Bank has had a meaningful impact since it embarked on its hiking cycle in May 2022. Growth has slowed substantially particularly driven by a weaker consumer as rate hikes take hold. A strong labour market and high population growth via migration continue to support the economy. Discover our views on these different drivers as we take a closer look at the Australian economy.

Outlook and sector view for Australian equities

The Australian economy has continued to weaken with inflation slowing but remaining elevated. We explore the implications of these macroeconomic forces as part of our dive into key sectors and providing recommendations for major banks, miners, retailers and commercial real estate. Find out more below.

Outlook for international equities

The outlook for international equities remains mixed with meaningful divergence in both valuations and economic prospects. Our more positive economic outlook, however, has seen us upgrade the prospects for global stocks. Find out more as we discuss our outlook and recommendations for these markets.