Monthly Economic Wrap

During June:

  • Global GDP growth in 2023 is projected to be 2.7% according to the OECD, the lowest annual rate since the global financial crisis, with the exception of the 2020 pandemic period. A modest improvement to 2.9% is forecast for 2024.
  • Annual OECD GDP growth is projected to be below trend in both 2023 and 2024, although it is expected to gradually pick up through 2024, as inflation moderates, and real incomes strengthen.
  • A combination of high inflation and modest wage increases led to falling real wages in 2022. Many governments rolled out extensive support to cushion the effects of high energy and food prices on households. Over the course of 2023, real wages are projected to stop declining in most OECD countries.
  • Share market performance was positive for the June quarter. The S&P 500 posted a solid return of 8.30%, while the Australian S&P 200 rose by a lacklustre 0.36% on a price basis.
  • Global shares ex-Australia produced a great return of 7.6% on an unhedged basis and 7.1% on a hedged basis.
  • In Australia, Equal Weight and Growth were the best performing styles for the quarter. Globally, Growth and Quality were standout performers from a style perspective, driven primarily by I.T. stocks that focus on Artificial Intelligence.
  • Within Fixed income markets, both Australian government bonds and credit lost ground this quarter. The main Australian fixed interest index, the Bloomberg AusBond Composite 0+ Years Index was down 2.9%, while the Bloomberg AusBond Credit 0+ Years Index fell 1.1%.
  • Global High Yield bonds, as measured by the Bloomberg Barclays Global High Yield Total Return Index Hedged into AUD gained 1.6% for the quarter.

Read more in the Monthly Economic Wrap here.


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