Party poopers at IMF say Australia’s 5 yr debt binge (yes, the same one that took house prices a tad north), has started to drag on economic growth.
Based on a study of 80 economies, it transpires that the temporary “sugar hit” growth from higher debt, gets reversed after 3-5 years (lower spending, household budgets squeezed by debt).
I think they’re saying that we’ve had a long (so fun!) night at the pub and the inevitable hangover is due – which could impact business growth and the price and accessibility of finance. This could be especially true for mid market business growth.
So, someone’s just tapped us and said – you’ve had enough. Seems like mid market businesses now need to think of what this hangover might mean for them.
If this slower economic growth means lower revenues and profitability for your business, then this will have follow on impact on your financing too.
This is the time to build alternatives that you can access if your main financier doesn’t deliver.