What's In Store For 2011?
Various forecasts have been made on Australia's likely economic performance through 2011 including:
- Reserve Bank of Australia cash rate of around 5%, currently 4.75%.
- Growth to be around 2.6% (just under 3% last year).
- Retail sales are expected to be a little stronger.
- Unemployment rate is expected to be as high as 6%.
- Currency fluctuations are expected during 2011, but $US to $AU is expected to be around 90 cents, as compared to last year's range of 87 cents to $1.02.
- Although the Gold Coast has escaped floods and the effects of the cyclones, international tourism will probably still suffer from the high $AU and the effects of the Queensland floods and Cyclone Yasi.
Added to this mix are the significant economic costs and strains from floods, cyclones and bush fires which have affected virtually every part of Australia, with the Queensland economy suffering a severe blow from the central and south Queensland floods and the effects of Cyclone Yasi on North Queensland.
Government assistance packages, including grants and loans, have been announced for small business and primary producers for which, if your business is in a declared disaster area and you are eligible, we recommend that you lodge an application.
On the world scene, China is still very strong and continues to be a major customer for many Australian minerals. High debt nations are expected to continue to be a drag on confidence during 2011. Many other countries around the world will continue with weak economic activities.
Small business operators need to be vigilant in the monitoring of debtors, investment in stock and work in progress, continually reviewing their business' economic performance. This can be enhanced by preparing regular budgets and cashflow forecasts, preparing regular financial accounts and benchmarking your business' performance against other similar businesses to identify strengths and weaknesses as compared to your counterparts.
We can assist you with a wide range of business development activities, including applications for government assistance; preparation and monitoring of budgets and cashflow forecasts; review of periodic financial accounts and analysing benchmark comparisons of your business against other similar businesses. Please do not hesitate to contact us if you wish to discuss any aspects of your business' performance.