Gail Kelly pessimistic on post-GFC world Westpac boss Gail Kelly has provided a pessimistic view about the post-GFC world, warning that the current economic volatility has years to run. Australias second-largest banks funding costs had recently risen following a period of falls but the economy was sluggish with credit demand a quarter of what it was before the global financial crisis hit in 2008, she said. People are not out there in fact raising money through offshore wholesale funding opportunities, Ms Kelly told the Nine Networks Financial
Jordan 6 Carmines Review Sunday. Unfortunately its still a pretty volatile world out there.
A financial crisis has a long running impact and it has probably got a few more years real volatility to weather. Credit demand is low with people saving or
Jordan 8 Aquas paying debts rather than borrowing and investing, at a time when the economy needs sectors such as tourism and construction to pick
Jordan 20 Stealths up and replace mining. In the decade before the GFC in 2008, overall credit growth each year was above 12.6 per cent compared to a current 3.0 per cent which is similar to GDP growth, Ms Kelly said. Its not going to go back up to anything like those levels, she said. She was hopeful that businesses and individuals would regain their confidence and start to spend more over the next six months, she said. The election period is never a good time and hopefully post-election well get a pick up in confidence, Ms Kelly said.
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