The Australian economy has seen drastic changes in 2014 and the effects are expected to ripple through this year. What are the expected changes and how will the Australian landscape look for 2015?

Australian Dollar.  The AU dollar has fallen to US81 cents. This is favourable to help the economy transition to non – mining activity, but will make overseas travel and purchase more expensive.

Interest Rates. The official cash rate has been on hold for 16 months at 2.5%. The current rates have stimulated housing construction. House prices are strong especially in Melbourne and Sydney, with house prices growing nationally at 7.9% in 2014.

Cost of Living. Oil prices have dropped, boosting disposable incomes. Cost of living has been alleviated by the low interest rates making it easier for people to get a home or car loan.

Price of Goods. With the weakened dollar, imports – such as manufacturing and components will be more expensive. However, domestic goods will be more cheaper, making domestic goods and travel cheaper locally.

Read more about this on the Sydney Morning Herald website.