Amidst aggravating concerns over coronavirus outbreak, UBS expects the Australian economy to contract by 0.1 per cent in the first quarter of year 2020. Moreover, it expects a 30 per cent drop in China’s total outbound travel this year, making first quarter contraction more severe.
UBS projections came up after the recent economic growth forecasts announced by the RBA, which highlighted:
- Australian economy is likely to grow by 2 per cent over the year ended June 2020, below its previous forecast of 2.25 per cent.
- Coronavirus and bushfires are expected to weigh on the nation’s economic growth for the year ended June 2020.
- Bushfires is likely to drag GDP growth by 0.2 per cent in Dec’19 and Mar’20 quarters.
There is no investor left unperturbed with the ongoing trade conflicts between US-China and the devastating bushfire in Australia.
Are you wondering if the year 2020 might not have taken the right start? Dividend stocks could be the answer to that question.
As interest rates in Australia are already at record low levels, find out which dividend stocks are viewed as the most attractive investment opportunity in the current scenario in our report.