And just like that, 2022 is here. Businesses are reopening, the workforce is growing, and vaccination rates are climbing. Though we still need to observe certain health protocols like social distancing and wearing masks indoors.
There also seems to be a light at the end of the tunnel despite the Omicron variant, so things are generally looking up.
While no one can predict what’ll happen this year, experts have made key economic forecasts to help guide our plans moving forward. At the very least, these can help you make informed decisions and take proactive measures.
So, let’s take a look at what the experts are predicting for the year ahead:
COVID-19 isn’t going anywhere.
I know, it’s a bummer. But as much as we would like to get rid of COVID, it’s here to stay. We’ve learned a lot about it in the past two years, but there’s still so much we don’t know or understand about the virus. Hence, fully eradicating it isn’t exactly feasible anytime soon.
During the first half of 2021, the economy struggled to recover. This 2022, experts are hopeful that the additional booster vaccinations will help bolster the economy. The Australian economist Sarah Hunter even says that, given the vaccination rates and the initial reports, 2022 is shaping up to be a better year.
Either way, we need to get used to living with COVID in our midst.
The labour force will continue to recover.
Guess what? The current unemployment rate in Australia is ironically the second lowest in the past 13 years – thanks to the 366,100 jobs that were added last November.
This surprising turnout is likely to continue if there will be no lockdowns moving forward.
A strong labour force often indicates a strong economy. Why? When people are secure in their jobs, their purchasing power increases. Thus, businesses can expect a steady demand for their products and services – even in the midst of a pandemic- given such circumstances.
So if you’re looking to start investing in your labour force, consider this a sign. Having the right people on your team can help you grow and expand your business further this time around.
Inflation will increase.
The world is still recovering, after all. Due to lockdowns and border restrictions, supply chains aren’t stable yet. As a result, inflation is set to continue on its upward trajectory this year.
Fortunately, it won’t stay that way, at least according to the experts.
However, if you plan to expand your products or services this 2022, make sure you have the means to sustain this expansion first. Given the current status, it might be more prudent to focus on recovery at the moment.
You could still work on improving your services in the meantime, of course.
Official interest rates might lift.
The Reserve Bank of Australia (RBA) has been saying that it won’t increase official rates “until actual inflation is sustainably within the 2 to 3 per cent target range.” On the other hand, some economists disagree with this.
RBA uses cash rates to influence the level of economic activity and inflation. Since we’re still in the middle of the pandemic, there’s a good chance that the rates will still be low. This can make it easier for businesses to operate without worrying about high interest rates for necessary loans.
In any case, it’s always a good idea to manage your resources wisely while the economy is under recovery.
Housing prices could continue to rise.
If you’re thinking about purchasing a new home or investing in a new property, tread carefully. Although the monthly growth rates are no longer skyrocketing, they’re not likely to go away this 2022.
Since the economy is recovering, first-time buyers abound in the market. This resulted in increasing mortgage rates and falling auction clearance rates. Hence, you might not be able to make significant savings if you purchase real estate in the coming months.
Why not use your extra funds to expand your business instead? You can try exploring different marketing strategies, enhancing product features, or introducing new services.
Remote Staff has been helping Australian SMEs and entrepreneurs like you scale their businesses sustainably – no matter the economic climate- with the best and most talented remote workers from the Philippines since 2007. This 2022, whether you need a new remote worker or an entire customer service team, we’ve got you covered.