Turning back the clock to just 12 months ago, the world collectively held its breath as a global pandemic unfolded, plunging us into the depths of the unknown. Uncertainty gripped all sectors, particularly businesses, as forecasts of catastrophic outcomes loomed on the horizon. Recessionary fears were pervasive, reminiscent of the challenges faced during the Great Depression. The outlook was undeniably grim.
As we fast forward to today, Australia, at least, is breathing a sigh of relief over how the pandemic has unfolded thus far – generally speaking. However, a lingering sense of uncertainty continues to cast a shadow, causing concern in various spheres. We find ourselves in a different phase of uncertainty, where certain indicators point towards a positive trajectory, yet other factors hold us back in uncharted and uncertain territory. More info.
The upcoming year might prove to be another challenging one for businesses as we continue to navigate through this uncharted territory – is it the post-pandemic era or an ongoing fallout from the pandemic? Staying informed about the broader economic landscape and simultaneously focusing on the minutiae of your own operations will once again be of paramount importance for business operators.
Finding the time to do that is another challenge. We assist you by keeping across what’s happening on the bigger economic scene as well as the local truck scene. Jade Truck Loans takes a look at what’s happening now that could affect your operations and what support is available to assist you in your business.
Economic Outlook
During a recent Senate Committee hearing, Matt Comyn, the head of CommBank (Commonwealth Bank of Australia), described Australia's recent economic performance as miraculous. As Jade Truck Loans is accredited with CommBank, this positive outlook from one of our major lenders is reassuring. We've also noticed a change in wording from the Prime Minister, shifting from "bouncing back" to "coming back" from the pandemic.
Regardless of how you phrase it, the Australian economy is indeed surpassing expectations and forecasts. Naturally, there are still sectors facing challenges due to the absence of international tourism and ongoing pandemic-related regulations. However, even the critical aviation sector is displaying positive signs, with both Qantas and Jetstar reporting strong passenger capacity numbers on domestic routes. Read more.
Unemployment figures for early March continue on the downward trend reaching 5.6% which continues to exceed expectations. The economic comeback is well underway on many fronts and this is not only important for individuals and businesses, but it will no doubt impact how the Treasurer frames the Federal Budget which is due in early May. The deficit which was forecast both in the October budget and in the MYEFO should be much less than predicted.
Indeed, analysts, commentators, and policy-makers are still anticipating the actual consequences of the end of JobKeeper. Although job vacancies are notably high, some regions are struggling to find sufficient staff to fill these positions.
This uncertainty persists despite the positive economic recovery, elevated levels of business and consumer confidence, and overall optimistic indicators. Doubts remain due to the intricacies of the evolving economic landscape.
Vaccine Scenario
The major doubts are being fuelled by the COVID-19 vaccine setbacks in Australia. The EU holding back the supply of 3 million doses of the Pfizer vaccine that had been ordered and side effects causing pauses and changes to the rollout of the Astra Zeneca job have placed Australia behind the initial schedule for having the population fully vaccinated.
This is big news as it has the potential to cost the economy, some are saying in the order of $10 billion. NSW Premier Gladys Berejiklian was one of the first leaders to publicly state her view that stalling the vaccine rollout could leave Australia behind the rest of the world.
As our fellow trading partners proceed with their vaccination efforts and reopen their trade and travel activities, there is a concern that Australia might lag behind in this global reconnection. Domestically, the delays in the vaccination program are likely to postpone the complete easing of certain restrictions, potentially affecting businesses.
In some states, venues are still required to operate under the 2 square metre rule, limiting their capacity to 50%. This restriction can have a direct impact on industries such as the delivery sector, which could be relevant to your field of operation. With fewer patrons allowed in pubs, clubs, and restaurants, the demand for various goods and services, including fresh produce and deliveries, decreases. This simple example highlights how individual aspects of the economy are interconnected within the broader economic framework. The anticipation was that the relaxation of the 2 square metre rule would occur once a considerable portion of the population had been vaccinated.
Who’s got your back?
As governments concentrate on the broader economic landscape, businesses must zero in on how their specific operations align with the overall picture. Amidst the ebb and flow of progress and challenges, it’s important to consider your support system. When it comes to purchasing a new truck, you can rely on Jade Truck Loans to have your back.
Our competitive truck loan interest rates offer affordable and workable pathways to invest in new vehicles and take advantage of the current financial situation and many of the tax measures on offer in the big picture. We also support our customers with a comprehensive and inclusive lending service where our truck loan brokers handle the entire finance process to save you time and money.
Despite all that’s happening in the big picture of the Australian economy, Jade focuses squarely on the needs of our customers.
Contact 1300 000 003 to discuss your lending options.
DISCLAIMER: THIS INFORMATION IS ISSUED PURELY FOR THE PURPOSE OF GENERAL INFORMATION PROVISION. IT IS NOT TO BE TAKEN AS THE ONLY SOURCE OF INFORMATION FOR BASING FINANCIAL DECISION-MAKING. THOSE REQUIRING FINANCIAL GUIDANCE AND ADVICE SHOULD CONSULT WITH THEIR FINANCIAL CONSULTANT OR ADVISOR. NO LIABILITY IS ACCEPTED FOR ANY MISREPRESENTATION OF POLICIES, DATA OR ERRORS IN THIS CONTENT.
