A double dip recession remains a danger for investors but is likely to be avoided, according to AMP’s chief economist, Shane Oliver.
Oliver told an Australian Institute of Superannuation Trustees conference today that the underlying fundamentals were strong enough to avoid a double dip.
However he warned that growth would be slow.
Oliver also discounted the threat to the Australian economy posed by a minority government saying he believed it was strong enough to keep moving forward.
He said there was likely to be decent growth but well short of a boom and therefore, little likelihood of further significant increases in interest rates.
Oliver said this represented good news for shares.
He said the price of Australian shares were low when compared to profit while commercial property appeared to have bottomed.
