Aussies Still Has Gloomy Outlook on Economy

While foreign investors see how developed Australia is, Aussies feel otherwise. While other countries see that Australia has a stable economy, Aussies are struggling to see it that way.

The recent rate cut implemented by the Reserve Bank of Australia sent the message that the economy may be in trouble. Several media outlets and critics used the term “emergency lows” to describe the Reserve Bank’s latest move.

The latest economic growth figures also appear to be sluggish and this did not help public sentiment.

The global stage, meanwhile, has a different view on the country. The lower cash rate and the strong dollar have made the Australian economy more appealing to foreign investors.

In fact, Russ Koesterich invented the acronym CASSH to describe the countries that are enjoying a favorable economic outlook. These countries are Canada, Australia, Switzerland, Singapore and Hong Kong.

Koesterich is the global chief investment strategist of Black Rock.

Chris Richardson, director of Deloitte Access Economics, said it is easy to understand why there is a split on how Aussies and global investors look at the economy. He explained that it is human nature that people compare what they currently have to what they were used to. Locals also tend to view things on smaller scale rather than see it from a point of view of an outsider.

The good news is that there are signs that some industries are starting to pick up again.