Goldman Sachs' Boak on the Australia, New Zealand Economies in the Year Ahead

The video discusses Australia's economic recovery, highlighting a strong GDP forecast due to high vaccination rates and pent-up demand. It examines the slow growth in wages and labor market challenges, emphasizing the need for a fully employed labor market to boost wages. The impact of global monetary policies, particularly from the Fed, on the RBA's decisions is analyzed. The video also explores China's economic influence on Australia, noting trade challenges and the resilience of Australian exports. Finally, it compares the monetary policies of Australia and New Zealand, highlighting differences in inflation and employment conditions.

What is one of the key supports for Australia's economic recovery?

• Low vaccination rates

• High household savings

• Decreasing demand

• Strict fiscal policy

What is the GDP forecast for Australia in 2022?

• 4.8%

• 5.0%

• 4.2%

• 3.5%

What is a major factor affecting wage growth in Australia?

• Open international borders

• Stable inflation

• High unemployment rate

• Strong wage growth

What is the current state of wage growth in Australia?

• Weak and stagnant

• Strong and increasing

• Rapidly decreasing

• Moderate and stable

How has Australia managed trade challenges with China?

• By successfully redirecting exports to non-China markets

• By halting all trade with China

• By reducing exports to other markets

• By increasing reliance on Chinese markets

What is a potential risk for Australian exports related to China?

• Rising Australian iron ore prices

• Slowing Chinese property market

• Decreasing global demand

• Increasing Chinese demand

What is a key difference between the monetary policies of Australia and New Zealand?

• Australia has stronger wage growth

• New Zealand has a weaker inflation overshoot

• New Zealand has led the tightening cycle

• Australia has a fully employed labor market