McGrathNicol Forecast 2023
13 February 2023
Predictions, pressures and planning – who will be the winners and losers in 2023?
Australia may be isolated, but it is not immune from global economic headwinds. Inflation levels are at a 30 year high, interest rates and energy prices are rising and national security and cyber threats see many businesses seeking to understand the extent of their risk.
This year, businesses will operate in the most challenging macro-economic conditions experienced in over a decade. More insolvencies are expected in certain sectors. Businesses exposed to U.S. and European markets may face liquidity pressure more quickly as those markets appear more vulnerable to the current economic headwinds than our domestic economy.
On the retail front, interest rates and the broader cost of living pressures are starting to bite. We expect retail sales to slow down, particularly in discretionary retail. Downward pressure on property prices will also have an impact on how wealthy consumers feel in 2023.
However, there are green shoots. Australia is still an attractive market for offshore investors. Global supply chain issues, shipping constraints and labour shortages are easing, while China is beginning to reopen.
Undoubtedly, there will be winners and losers in 2023. With careful planning and advice, businesses can navigate these challenges and capitalise on the opportunities. We hope you enjoy the McGrathNicol Forecast.
We look forward to working with you in the year ahead.
Jason Preston, Chairman