Looking past the immediate market fluctuations, we are seeing a combination of cyclical factors, such as interest rate cuts, and structural drivers, including tax cuts, tariffs, budget deficits, supply chain reshoring, increased defense spending, renewable energy transition, and accelerating technological change. These forces, unprecedented in their current convergence, are poised to drive above-trend economic growth in select regions, particularly the United States and parts of Western Europe. India is also expected to continue its strong growth trajectory.
Australia stands to benefit from the cyclical drivers and may also see advantages from some of these structural shifts, depending on the extent of the budget and tax reforms implemented by the federal Labor government, following its strong mandate from the recent election.
