Quarterly Economic Update February - April 2025

File: GW Market & Economic update – February – April 2025

Duration: 02:41

Date: June 04, 2025

00:01 GW Market & Economic update – February – April 2025

00:08 Recent months have highlighted how sensitive investment markets are to economic and political shifts.

00:14 From Australia’s federal election to sharemarket swings, rising gold prices, and cost-of-living pressures, there’s been plenty of movement.

00:20 Election Shake-Up

00:24 On 3 May, Labor, led by Anthony Albanese, won a clear majority with 93 seats—up from 77.

00:29 In a historic upset, Opposition Leader Peter Dutton lost his seat. Sussan Ley was later elected as the Liberal Party’s first female federal leader.

00:38 On 2 April, Donald Trump triggered a global tariff war by imposing tariffs on all countries, calling it “Liberation Day.”

00:46 Markets plunged over 15%, and gold surged to a record AUD 3,300 an ounce as investors sought safety.

00:54 The move pressured global leaders into talks, restoring confidence and driving markets up 20% since.

01:02 RBA Eases Pressure, But It’s No Silver Bullet

01:08 In February, the Reserve Bank cut interest rates by 0.25% to 3.85% amid cooling inflation at 2.4%, aiming to ease pressure on borrowers.

01:16 Still, households continue to struggle with high everyday costs.

01:24 Housing Market: Some Bounce, But Still a Bruise

01:30 Property markets show mixed signals—values are rising in Perth, Adelaide, and Sydney, and confidence is up with NAB’s index at +40.

01:38 But affordability remains an issue, with wage growth lagging and 1.45 million mortgage holders under stress—nearly one in six borrowers. A tipping point may be near.

01:45 Jobs Holding Strong

01:51 Unemployment remains low at 4%, with steady job creation helping to avoid a broader slowdown.

01:57 While spending continues, it's more cautious as economic pressures persist.

02:03 Green Shoots in the Energy Sector

02:09 A bright spot this quarter is Australia’s push into renewables, attracting strong investment. If managed well, it could bring long-term economic gains and thousands of jobs.

02:17 Where to From Here?

02:24 With politics settled and rates easing, there’s cautious optimism. But cost pressures and global uncertainty remain.

02:30 For Aussies and investors, the focus now is on adaptability, reducing risk, and staying alert.