Global Progress?

The IMF has recently trimmed its overall global forecast — down to 4.2% from 4.3%, for 2011.

Global GrowthThe emerging and developing economies are tipped to grow by 6.4% (with China’s growth being over 9%).

Whereas, the various advanced economies are expected to grow by a subdued 2.2%, on average.

However, any double-dip recession is considered most unlikely — as investment and domestic consumption has replaced the building up of inventories.

According to the IMF: “Investment in machinery and equipment is already showing strength in a number of advanced economies.”

Nonetheless, spending and investment in most advanced economies will be constrained by households replenishing their savings; and banks remaining reluctant to lend freely to businesses. Plus, the US housing market still languishes.

Overall, the lack of business investment (and therefore employment growth) will adversely impact on tax revenues. And thereby, make government debt reduction programs a slow process.

On all counts, Australia will continue to enjoy solid growth — relative to other advanced economies. And this will provide ongoing pressure for interest rates to rise, over the next three years.

All the more reason to lock in your interest rates long-term … for any Commercial property investments you intend to make.

Will Australia’s Growth
Remain Strong?

Pick up any newspaper, and you’ll find most commentators saying the Resources boom is back on once again.

Also, people are pointing to China as our guiding light going forward.

But is this really true? And if so, why?

Here’s a short Video giving you a quick insight into whether there really is any substance to what we’re being told.
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Do You Remember Back Then … ?

In an earlier article, I gave you a bullet-point comparison of how things are NOW … compared to the early 1990s … in relation to Commercial property.

Anyway, here are some very revealing graphs — based upon figures from the RBA.

Now & Then

Now & Then


Back in the 1990s, the banks were burdened with a heavy corporate exposure; and interest rates were up around 18% pa.
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Positive Signs Continue in China

China's Recovery

China's Recovery


Despite what the IMF has to say this morning … the World Bank expects China’s economy to start growing by mid-year, as a result of its massive stimulus package (some $A800 billion).

Overall growth for China has become more certain, as activity moves from state-funded projects into housing and improved consumption.
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