The trickle on effect: How will reduced global stimulus affect government initiatives
21st December 2021

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The new world we live in is a “High Debt World”.

Sky-high borrowing levels could have profound consequences for the global economy – with Australians working longer and spending less. The result of the reduction in Quantitative Easing by the US Federal Reserve will get our friends in Canberra scratching their heads. But what affect will this reduction in global stimulus have?

With the global equities marketing starting to shift, the US Reserve may shortly start winding back its bond purchasing program. But it doesn’t stop there. The recent sharp turnaround of commodity prices will threaten the Australian Federal Government’s spending, as they have been providing the Government with a substantial boon for the last few years.

The lower prices attained by Australian miners could burn a substantial hole in government coffers, eventually translating into less money for the government to spend on its public initiatives. Subsequently, the net effect for suppliers of Government services, including the lucrative contractor market, is a hit to revenues.

All signals are suggesting that what is coming is likely to be bigger than what we experienced during the GFC.

This is the trickle on effect. Everything has a flow on effect when large economies, such as the US and China are involved? Every action leaves a footprint, and the consequences begin to come full circle. But what does this mean for the local Australian IT industry?

In this modern landscape, IT projects are becoming an essential model to deliver change and create value. However, when times get tough, it’s important to prioritise and invest in the right project. Organisations are seeking more. Besides projects being on time and within budget, they must also offer value and provide an organisation with a clear view of strategy execution.

This is where we come in.

Avec offers a host of project related services, including Portfolio Management and Prioritisation, to assist you weather the pending storm. The Avec team can provide thought leadership and consultative engagements on these areas or is able to offer these as part of a service.

Get in touch – info@avecglobal.com

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