2013 is officially over, but momentum is still strong for several financial sectors. Here’s a look at the forecasted financial sector performance through the year.
Property has exceeded expectations in 2013, yet many fear that this sector has already reached its peak. Interest rates are at a record low, yet property prices have continued to increase for several capital cities, led by Sydney with a price increase of 14% over the year. First Home Buyer activity has also decreased during the last quarter. Because of these changes, the construction sector is slowly meeting demand, and this is expected to ease property prices in 2014.
Cash and bonds are expected to remain flat with the interest rate forecasted to remain at low levels. It is forecasted that further interest rate cuts will occur in the first quarter of the year.
Several sectors are expected to benefit from the low Australian dollar, currently at 89 cents. It is forecasted to further decrease to 80 cents. This will definitely be a huge boost for the tourism and manufacturing sectors, as well as other sectors that thrive on low exchange rate levels.
Read more about this on the Courier Mail website.