In 2023, financial markets remained volatile and returns were generally below long-run historical averages. Yet, it was still a better year for Australian and global investors than 2022. Looking ahead, a new economic regime is taking shape with higher rates and greater volatility set to define the investment landscape in 2024. However, with volatility comes opportunity.
In our 2024 Outlook, we explore the intricate macroeconomic backdrop, offering insights into the potential opportunities amid uncertainties across equities, fixed income, real estate, and infrastructure.
Cyclical challenges remain
The general trend suggests a global economic slowdown. In Australia, we expect economic growth to remain moderate, driven by a weaker labour market weighing on income and consumption.
Monetary policy shifts gears
As aggregate demand softens globally and unemployment rates rise, we foresee inflation easing in 2024, opening the door for significant interest rate cuts.
Strong local recovery, with lags
Despite strong recovery post-COVID-19, Australia faces a per capita recession, hinting at more sluggish growth. However, armed with excess savings, a resilient consumer, and robust public sector investment, we expect Australia to experience a soft landing rather than a recession.
On demand
Our panelists discuss the key themes investors should be prepared for to navigate the markets in 2024.
The global economy faces diverse and complex challenges, but we can play a key role in presenting opportunities to our clients that will generate positive impact for everyone.”
Ben Way
Group Head, Macquarie Asset Management
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