Market/Finance News Blog: Economies near and afar

By the resi financial blog team, 04 December 2014

Market/Finance News Blog: Economies near and afar

There are endless factors that affect a country's economy, whether big or small. These market forces are the playground of economists who predict and direct the growth of our fair nation. So, it's good to know that there are small things each of us can do that will strengthen the Australian economy.

The big players

For business owners and exporters, the recent trade agreement with South Korea will be a welcome announcement. Affirmed by a vote of the Korean National Assembly, the Korea-Australia Free Trade Agreement (KAFTA) was formally sealed with an 'exchange of notes' between Australia's ambassador in Seoul and the Korean Government.

A release by Trade and Investment Minister Andrew Robb on December 3 reveals that Australian exporters shipping to Korea can expect an immediate cut in tariffs on their products, when the agreement goes into effect on December 12.

"KAFTA's entry into force at this time will mean that many Australian exporters will benefit from an immediate tariff cut by Korea, and a further tariff cut on 1 January 2015; shoring up our competitiveness in our third largest export market," said Mr Robb.

Doing our part

While big trade deals are a major boon to Australia's economy and local producers, the average citizen can also contribute to the state of the nation, according to Bruce F., minister for small business.

While the government has effected a lot of initiatives over the year to help stimulate the competitiveness of small local businesses, including support networks and legal protection, the average consumer can make a difference by choosing where to do their Christmas shopping.

Mr Billson's office believes that the welfare of Australian entrepreneurs and family businesses is what keeps the country ticking. An official release on December 3 states that best way to ensure ongoing small business prosperity starts with your Christmas wish list:

"The best way to ensure competition and the security of our economy is to support small business and family enterprises by shopping local. In the lead up to this holiday season it is important to visit our local shopping strips and small businesses when thinking about Christmas preparations and Christmas presents."

While it can be hard to imagine your holiday spending being more than a drop in the bucket, combined with $2 billion of red and green tape cost cutting, the $484.2 million Entrepreneurs' Infrastructure Programme and a raft of other initiatives, your Christmas shopping can make a lot of difference.

If you're looking at setting up a commercial loan to get your business off the ground in the new year, talk to a resi loan specialist today to find out what products might suit your needs.

Categories: Business Owners