For the first time in recorded history, Australia registered two consecutive quarters of economic growth of more than 3 per cent, suggesting we’re on the precipice of economic recovery.
Through successful virus containment and effective fiscal and monetary response, Australia has weathered the COVID-19 storm once again, proving our formidable resolve. Outperforming advanced economies in 2020 is one thing, but maintaining positive momentum and building into the future is another. As we transition from virus containment to economic construction, here are some considerations to promote vibrancy and vitality.
As Government assistance packages are scaled back, consumer spending and business investment have picked up the heavy lifting, positive sentiment appearing to return. Fitch Ratings forecast economic growth of 3.8% in 2021 and 2.7% in 2022 and with Australia maintaining its AAA credit rating, confidence is improving however, we should not assume a return to life as we knew it. COVID-19 triggered a tectonic shift in how organisations view operations and subsequently, the speed and ferocity with which change in the 21st century attacks. Digitisation can no longer be ignored and those who choose to do so, put themselves at significant disadvantage.
Digitisation arrived with such intensity that companies were forced to re-evaluate, reimagine and reinvent everything. From customer experiences, to remote working capacity, to diversifying supply chains. What does this mean for your business? As automation, artificial intelligence and machine learning integration takes hold, lightning speed insights can be had, new forms of working will be discovered, the nature of corporate travel will alter and the institution of the office will be challenged.
Perhaps most interestingly, relationships between government, the bureaucracy, regulators and industry provide cause for optimism, speed of action a decisive factor. Never before have we seen wide-sweeping, bipartisan policy coordinated and guidance provided so quickly, working together in mutual preservation. This is what builds nations: coming together and finding solutions to problems. How Australia moves forward will determine not only our immediate future, but that of generations to come.
Addressing sustainability is unavoidable — governments, financial institutions, private equity and investors are firmly planted at the table, green finance their voting rights. This behemoth is set to transform markets, shape lending priorities and shift sentiment to companies bold and brave enough to embrace the green revolution.
Whether it’s battery storage technology, vertical farming, smart cities, commercial applications of hydrogen or lowering office energy consumption, the need to apply action has arrived. With political will and commercial patronage, the sustainability dream has become our green reality.
Where to from here? It’s time to mobilise. Organisations must take COVID-19 lessons learned and turn them into effective actions. Building organisational resilience through investment in preventative measures (e.g business continuity plans and cloud solutions), encouraging innovation and strengthening competitive advantage is paramount.
