It’s official, Australia is now in a recession. But should you be concerned?
First of all, what does it mean?
Well, a recession is a period when an economy is contracting rather than expanding, and is typically characterised by a significant rise in the unemployment rate.
People spend less, businesses are firing instead of hiring and economic output falls.
Healthcare professionals typically have stable employment, which is good news for you.
Perhaps more importantly though, many people have started dropping their private health insurance cover, in a bid to reduce their household expenditure.
That is sure to have some flow-on effect if part or all of your income is from private practice, particularly if you are in the more ‘discretionary’ health space.
Now more than ever you should focus on business fundamentals such as controlling your costs, maximising productivity and implementing effective marketing strategies.
In terms of how the property market and share market may be affected is less clear.
Stock markets have performed exceptionally well since they plunged earlier this year and the property market has also been resilient, largely due to low interest rates. Great buying opportunities may arise for those who have a plan.
The key thing to remember is to focus on what you can control, and not get too overwhelmed by things that are outside your control.
If you require some external perspective on how you may be affected, please contact me on 0432 885 295 or Yves@affluenceprivate.com.au