Global Economists Now Realise Growth Is Slowing, ANZ Make A Move, My Tips For The Weekend

One of the themes of this month is clearly increasing worries about a global slowdown, especially after the US Federal Reserve pointed the finger abroad in its decision to not lift rates last week.

CitiBank is now expecting global growth next year to fall to 2.9 per cent and its chief economist Willem Buiter is even gloomier, fearing it could slow closer to just 2 per cent, which is akin to a global recession. The main reason for the deceleration is China, where growth forecasts are still being revised downwards.

The question for Australia is how a global slowdown will affect the local economy and thus interest rates.

ANZ was the first of the big four banks to factor in the altering global landscape,on Fridayforecasting softer local growth and higher unemployment, and as a consequence two more rate cuts by the RBA.

On a different note Australia Post has plunged to a $222 million full-year loss, dragged down by the continued decline in its traditional letter business. It is the Government-owned monopoly’s first loss in 30 years, but comes as no surprise having been flagged earlier this year.

Last year Australia Post recorded a $116 million profit. Australia post has reported a 7.3% decline in its letter service.

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