Slowing economy could be ideal time for investment

The Australian economy is likely to grow even more slowly this year than in 2023 but it could be great time to invest private capital, based on economic predictions outlined at the recent Growth Capital Forum 2024.

Macquarie lead global economist Dan Fabbro told the 27 February event a number of factors were likely to result in a turnaround in demand in the second half of the year, including the the Reserve Bank cutting interest rates late in the year.

Fabbro said there were already early signs that the economic cycle had bottomed out and was beginning to turn. Provision of new industrial equipment was increasing, in some cases because delivery delays caused by the pandemic were finally being resolved, but also because of solid growth in new business investment. This change had been supported by mainly good corporate profit reports so far this year, following a period in which many companies had cut back on planned capital expenditure as economic growth slowed.

But the key factor to which Fabbro pointed was a likely turnaround in consumer sentiment over the second half of the year.

You can learn exactly why Fabbro is anticipating that change by watching an edited version of his presentation in a free access video on the Private Equity Media website: www.privateequitymedia.com.au/resources    

Growth Capital Forum 2024 was held at the Ivy Ballroom, Sydney, on 27 February and was attended by around 140 people.

The event was sponsored by Macquarie and the Clean Energy Finance Corporation (CEFC) and was organised by Private Equity Media and events business Slatterys.

Image: Macquarie lead global economist Dan Fabbro.