06 May Labor returned to Government in Australia – key challenges and risks
Key Points
- The return of Labor with an increased majority basically means more of the same in terms of key economic policies.
- The key challenges for the Government are to boost productivity and hence living standards, improve housing supply and affordability, get the budget under better control and strengthen the economy in the face of the challenges to global trade posed by Trump.
- It’s possible the ALP could use its enhanced political capital to push a market friendly reform agenda or push down a less market friendly path under influence from the Senate Greens. The former would probably require a crisis though and the latter would likely be seen as too politically risky.
- The impact on investment markets is likely to be minor.
