Gold Coast insulated from global uncertainty
JITTERS about global markets, a housing price rout, falling Aussie dollar and stagnant interest rates are more likely to work for the Gold Coast than against it, according to Bendigo Bank chief economist David Robertson.
Growing trade tensions between the United States and China as well as rising global interest rates have seen mar- kets dive in the past week, causing the International Monetary Fund to slash its 2018 global economic growth forecast from 3.9 per cent to 3.7 per cent.
Mr Robertson, who is speaking at a business breakfast at Paradise Point tomorrow, said the Gold Coast was protected from much of the global uncertainty.
“But obviously there are some local concerns around the housing market and tightening credit conditions,” he said. “Fortunately for the Gold Coast, I think a lot of those risks are less severe than in other parts of Australia.
“In terms of the housing crisis, prices are still rising there and certainly there are risks with falling housing prices in the capital cities, but that doesn’t seem to be being manifested on the Gold Coast.”
Mr Robertson is speaking alongside Gold Coast council planning chairman Cameron Caldwell at an Economic Update and Business Breakfast at the InterContinental Sanctuary Cove tomorrow.
At 4.5 per cent, the city’s unemployment rate has outperformed the six per cent statewide level and the nation’s 5.3 per cent.
“And Gold Coast is also enjoying population growth of 2.5 per cent, which is higher than Australia and Queensland – it’s ticking a lot of boxes,” Mr Robertson said.
“Regarding the Australian dollar, if it gets down to 68 cents, it will further help with tourism and service exports like education.
“There’s a little bit of negativity in the markets, but there are such variations from state to state and city to city. The Gold Coast seems to be pretty well insulated from that.”