![\"X](\"https:\/\/cdn.propertyupdate.com.au\/wp-content\/uploads\/2025\/05\/x-factor-2.png\")
<\/a><\/p>\n<\/p>\n
The dual impact of X-factors<\/span><\/h2>\nSome X factors are local\u2014like government policy changes, interest rate hikes, or a surge in foreign investment.<\/p>\n
Others are global in nature, stemming from geopolitical events, technological revolutions, or social upheavals.<\/p>\n
For example:<\/p>\n
\n- The near-meltdown of the global banking system during the GFC in 2008 was a black swan event no one predicted.<\/li>\n
- Conversely, in 2020, the pandemic created a once-in-a-generation property boom, fuelled by record-low interest rates.<\/li>\n<\/ul>\n
The lesson?<\/p>\n
While it\u2019s essential to take a long-term view, you must always prepare for the unexpected.<\/p>\n
Protecting yourself by only holding quality assets, having a level of diversification, and having a \u201crainy day\u201d financial buffer are crucial strategies for navigating the uncertainties X factors bring.<\/p>\n
A year-by-year breakdown of X-factors<\/span><\/h2>\nTo help jog your memory, here\u2019s a snapshot of some of the significant X factors, both domestic and global, from the last two decades.<\/p>\n
2024<\/strong><\/p>\n\n- Australian Factor:<\/strong> Record immigration levels and rising construction costs exacerbated our housing and rental crisis, meaning the many predictions of a housing market downtown did not eventuate. <\/div><\/li>\n
- Global Factor:<\/strong> Rapid adoption of AI reshaped global labour markets, creating new uncertainties in job security.<\/li>\n<\/ul>\n
2023<\/strong><\/p>\n\n- Australian Factor:<\/strong> The RBA\u2019s aggressive interest rate hikes significantly impacted household budgets, with many Australians struggling to manage rising wage repayments alongside elevated living costs.<\/li>\n
- Global Factor:<\/strong> Persistent global inflation, spurred by supply chain issues and central bank policies, strained economies worldwide.<\/li>\n<\/ul>\n
\u00a0<\/strong>2022<\/strong><\/p>\n\n- Australian Factor:<\/strong> Multiple interest rate rises by the RBA to inflation caught many mortgage holders off guard, creating financial stress for those who had taken on debt during the previous period of record-low interest rates.<\/li>\n
- Global Factor:<\/strong> Russia\u2019s invasion of Ukraine shocked global markets, fuelling inflation and an energy crisis.<\/li>\n<\/ul>\n
\u00a0<\/strong>2021<\/strong><\/p>\n\n- Australian Factor:<\/strong> The fracturing of the long-dominant view of low inflation was here to stay. Also, work-from-home trends fuelled a regional property boom, changing property demand dynamics.\r\n\r\n<\/div><\/li>\n
- Global Factor:<\/strong> The global rollout of COVID-19 vaccines provided a pathway to economic recovery, restoring confidence in many sectors despite ongoing challenges.
\nHowever, this recovery was uneven across countries, with supply chain disruptions and labour shortages driving inflationary pressures worldwide.
\nThese factors, combined with pent-up consumer demand and stimulus measures from major economies, created a complex environment of rapid economic growth in some regions and lingering instability in others<\/li>\n<\/ul>\n\u00a0<\/strong>2020<\/strong><\/p>\n\n- Australian Factor:<\/strong> The COVID-19 pandemic caused an unprecedented economic shock, with nationwide lockdowns halting businesses, disrupting supply chains, and forcing millions of Australians to work from home.
\nDespite the initial uncertainty, record-low interest rates, government stimulus measures like JobKeeper, and changes in housing preferences triggered a once-in-a-generation property boom, as buyers sought larger homes and regional properties to accommodate their new lifestyles.<\/li>\n- Global Factor:<\/strong> The pandemic created a global health and economic crisis shutting down economies, grounding international travel, and disrupting supply chains worldwide. Governments and central banks responded with massive stimulus packages, including direct payments, business support, and record-low interest rates, to prevent economic collapse. This unprecedented response, while cushioning the immediate blow, also fuelled asset price inflation globally, with housing markets in many countries experiencing unexpected booms despite the ongoing health and economic uncertainty.<\/li>\n<\/ul>\n
![\"Covid](\"https:\/\/cdn.propertyupdate.com.au\/wp-content\/uploads\/2022\/01\/covid-investment-800x533.jpg\")
<\/p>\n
\u00a0<\/strong>2019<\/strong><\/p>\n\n- Australian Factor:<\/strong> The unexpected federal election win by Scott Morrison boosted confidence among property owners who were worried that labour would bring in oppressive tax measures.<\/li>\n
- Global Factor:<\/strong> Trade tensions between the US and China created uncertainty in global markets.<\/li>\n<\/ul>\n
\u00a0<\/strong>2018<\/strong><\/p>\n\n- Australian Factor:<\/strong> The Banking Royal Commission exposed widespread misconduct in the financial services industry, including poor lending practices and inadequate safeguards for borrowers. As a result, banks tightened their lending criteria significantly, making it harder for buyers to secure loans and reducing credit availability across the property market. This led to a slowdown in housing market activity, particularly affecting investors and buyers in overheated markets like Sydney and Melbourne, and contributed to declining property prices during the year.<\/li>\n
- Global Factor:<\/strong> Escalating trade tensions between the United States and China created uncertainty in global financial markets, disrupting trade flows and impacting investor confidence worldwide. Simultaneously, ongoing Brexit negotiations added to the volatility, as businesses and governments faced significant uncertainty about the future economic relationship between the UK and the European Union.<\/li>\n<\/ul>\n
2017<\/strong><\/p>\n\n- Australian Factor:<\/strong> Property prices in Sydney and Melbourne reached record highs, driven by a combination of low interest rates, strong investor activity, and population growth, intensifying debates around housing affordability, with many Australians feeling locked out of the market and policy makers feeling increased pressure to intervene. \r\n<\/div><\/li>\n
- Global Factor:<\/strong> Global financial markets experienced an unusual period of stability, with low volatility boosting investor confidence and supporting economic growth across many regions.<\/li>\n<\/ul>\n
![\"x-factor\"](\"https:\/\/cdn.propertyupdate.com.au\/wp-content\/uploads\/2014\/06\/x-factor.jpg\")
<\/p>\n
\u00a0<\/strong>2016<\/strong><\/p>\n\n- Australian Factor:<\/strong> The surge in foreign investment in Australian real estate, particularly from Chinese buyers, continued to drive demand in major markets like Sydney and Melbourne. However, the government's introduction of tighter regulations and foreign investment taxes in some states created uncertainty and began to dampen activity.<\/li>\n
- Global Factor:<\/strong> The Brexit referendum, where the UK voted to leave the European Union, created widespread uncertainty about the future of global trade and economic stability, leading to volatility in financial markets. Later that year, the election of Donald Trump as President of the United States further unsettled the global economy, with concerns over his trade policies, isolationist rhetoric, and unpredictable leadership style introducing new risks for international relations and economic cooperation<\/li>\n<\/ul>\n
2015<\/strong><\/p>\n\n- Australian Factor:<\/strong> APRA introduced stricter lending restrictions to curb excessive risk-taking by banks, including a 10% cap on investor loan growth and higher capital requirements. These measures forced lenders to tighten credit, reduce borrowing capacity, and increase interest rates on investment loans, significantly cooling investor activity in markets like Sydney and Melbourne. As a result, many investors had to rethink or delay their purchasing plans, shifting the housing market focus toward owner-occupiers.<\/li>\n
- Global Factor:<\/strong> China's stock market crash wiped trillions of dollars in value, sending shockwaves through global financial markets and raising concerns about the sustainability of China's economic growth. The crisis highlighted the fragility of the global economy, as China's slowdown impacted commodity prices and trade flows, particularly affecting resource-exporting countries like Australia, which heavily relies on China's demand for raw materials.<\/li>\n<\/ul>\n
2014<\/strong><\/p>\n\n- Australian Factor:<\/strong> A surge in foreign investment, particularly from Chinese buyers, drove significant demand for new and off-the-plan apartments, particularly in Sydney and Melbourne. The trend prompted growing public debate and government scrutiny, eventually leading to the introduction of foreign investment taxes and tighter regulations in subsequent years.<\/li>\n
- Global Factor:<\/strong> Global oil prices plummeted from over $100 to less than $50 per barrel due to rising US shale production, OPEC\u2019s decision to maintain output, and weakening global demand. This crash hurt oil-exporting nations but lowered energy costs for countries like Australia. While Australian consumers benefited from cheaper fuel, the mining and resources sector faced increased uncertainty and pressure from weaker global commodity markets.<\/li>\n<\/ul>\n
\u00a0<\/strong>2013<\/strong><\/p>\n
The lesson?<\/p>\n
While it\u2019s essential to take a long-term view, you must always prepare for the unexpected.<\/p>\n
Protecting yourself by only holding quality assets, having a level of diversification, and having a \u201crainy day\u201d financial buffer are crucial strategies for navigating the uncertainties X factors bring.<\/p>\n
A year-by-year breakdown of X-factors<\/span><\/h2>\nTo help jog your memory, here\u2019s a snapshot of some of the significant X factors, both domestic and global, from the last two decades.<\/p>\n
2024<\/strong><\/p>\n\n- Australian Factor:<\/strong> Record immigration levels and rising construction costs exacerbated our housing and rental crisis, meaning the many predictions of a housing market downtown did not eventuate. <\/div><\/li>\n
- Global Factor:<\/strong> Rapid adoption of AI reshaped global labour markets, creating new uncertainties in job security.<\/li>\n<\/ul>\n
2023<\/strong><\/p>\n\n- Australian Factor:<\/strong> The RBA\u2019s aggressive interest rate hikes significantly impacted household budgets, with many Australians struggling to manage rising wage repayments alongside elevated living costs.<\/li>\n
- Global Factor:<\/strong> Persistent global inflation, spurred by supply chain issues and central bank policies, strained economies worldwide.<\/li>\n<\/ul>\n
\u00a0<\/strong>2022<\/strong><\/p>\n\n- Australian Factor:<\/strong> Multiple interest rate rises by the RBA to inflation caught many mortgage holders off guard, creating financial stress for those who had taken on debt during the previous period of record-low interest rates.<\/li>\n
- Global Factor:<\/strong> Russia\u2019s invasion of Ukraine shocked global markets, fuelling inflation and an energy crisis.<\/li>\n<\/ul>\n
\u00a0<\/strong>2021<\/strong><\/p>\n\n- Australian Factor:<\/strong> The fracturing of the long-dominant view of low inflation was here to stay. Also, work-from-home trends fuelled a regional property boom, changing property demand dynamics.\r\n\r\n<\/div><\/li>\n
- Global Factor:<\/strong> The global rollout of COVID-19 vaccines provided a pathway to economic recovery, restoring confidence in many sectors despite ongoing challenges.
\nHowever, this recovery was uneven across countries, with supply chain disruptions and labour shortages driving inflationary pressures worldwide.
\nThese factors, combined with pent-up consumer demand and stimulus measures from major economies, created a complex environment of rapid economic growth in some regions and lingering instability in others<\/li>\n<\/ul>\n\u00a0<\/strong>2020<\/strong><\/p>\n\n- Australian Factor:<\/strong> The COVID-19 pandemic caused an unprecedented economic shock, with nationwide lockdowns halting businesses, disrupting supply chains, and forcing millions of Australians to work from home.
\nDespite the initial uncertainty, record-low interest rates, government stimulus measures like JobKeeper, and changes in housing preferences triggered a once-in-a-generation property boom, as buyers sought larger homes and regional properties to accommodate their new lifestyles.<\/li>\n- Global Factor:<\/strong> The pandemic created a global health and economic crisis shutting down economies, grounding international travel, and disrupting supply chains worldwide. Governments and central banks responded with massive stimulus packages, including direct payments, business support, and record-low interest rates, to prevent economic collapse. This unprecedented response, while cushioning the immediate blow, also fuelled asset price inflation globally, with housing markets in many countries experiencing unexpected booms despite the ongoing health and economic uncertainty.<\/li>\n<\/ul>\n
<\/p>\n
\u00a0<\/strong>2019<\/strong><\/p>\n\n- Australian Factor:<\/strong> The unexpected federal election win by Scott Morrison boosted confidence among property owners who were worried that labour would bring in oppressive tax measures.<\/li>\n
- Global Factor:<\/strong> Trade tensions between the US and China created uncertainty in global markets.<\/li>\n<\/ul>\n
\u00a0<\/strong>2018<\/strong><\/p>\n\n- Australian Factor:<\/strong> The Banking Royal Commission exposed widespread misconduct in the financial services industry, including poor lending practices and inadequate safeguards for borrowers. As a result, banks tightened their lending criteria significantly, making it harder for buyers to secure loans and reducing credit availability across the property market. This led to a slowdown in housing market activity, particularly affecting investors and buyers in overheated markets like Sydney and Melbourne, and contributed to declining property prices during the year.<\/li>\n
- Global Factor:<\/strong> Escalating trade tensions between the United States and China created uncertainty in global financial markets, disrupting trade flows and impacting investor confidence worldwide. Simultaneously, ongoing Brexit negotiations added to the volatility, as businesses and governments faced significant uncertainty about the future economic relationship between the UK and the European Union.<\/li>\n<\/ul>\n
2017<\/strong><\/p>\n\n- Australian Factor:<\/strong> Property prices in Sydney and Melbourne reached record highs, driven by a combination of low interest rates, strong investor activity, and population growth, intensifying debates around housing affordability, with many Australians feeling locked out of the market and policy makers feeling increased pressure to intervene. \r\n<\/div><\/li>\n
- Global Factor:<\/strong> Global financial markets experienced an unusual period of stability, with low volatility boosting investor confidence and supporting economic growth across many regions.<\/li>\n<\/ul>\n
<\/p>\n
\u00a0<\/strong>2016<\/strong><\/p>\n\n- Australian Factor:<\/strong> The surge in foreign investment in Australian real estate, particularly from Chinese buyers, continued to drive demand in major markets like Sydney and Melbourne. However, the government's introduction of tighter regulations and foreign investment taxes in some states created uncertainty and began to dampen activity.<\/li>\n
- Global Factor:<\/strong> The Brexit referendum, where the UK voted to leave the European Union, created widespread uncertainty about the future of global trade and economic stability, leading to volatility in financial markets. Later that year, the election of Donald Trump as President of the United States further unsettled the global economy, with concerns over his trade policies, isolationist rhetoric, and unpredictable leadership style introducing new risks for international relations and economic cooperation<\/li>\n<\/ul>\n
2015<\/strong><\/p>\n\n- Australian Factor:<\/strong> APRA introduced stricter lending restrictions to curb excessive risk-taking by banks, including a 10% cap on investor loan growth and higher capital requirements. These measures forced lenders to tighten credit, reduce borrowing capacity, and increase interest rates on investment loans, significantly cooling investor activity in markets like Sydney and Melbourne. As a result, many investors had to rethink or delay their purchasing plans, shifting the housing market focus toward owner-occupiers.<\/li>\n
- Global Factor:<\/strong> China's stock market crash wiped trillions of dollars in value, sending shockwaves through global financial markets and raising concerns about the sustainability of China's economic growth. The crisis highlighted the fragility of the global economy, as China's slowdown impacted commodity prices and trade flows, particularly affecting resource-exporting countries like Australia, which heavily relies on China's demand for raw materials.<\/li>\n<\/ul>\n
2014<\/strong><\/p>\n\n- Australian Factor:<\/strong> A surge in foreign investment, particularly from Chinese buyers, drove significant demand for new and off-the-plan apartments, particularly in Sydney and Melbourne. The trend prompted growing public debate and government scrutiny, eventually leading to the introduction of foreign investment taxes and tighter regulations in subsequent years.<\/li>\n
- Global Factor:<\/strong> Global oil prices plummeted from over $100 to less than $50 per barrel due to rising US shale production, OPEC\u2019s decision to maintain output, and weakening global demand. This crash hurt oil-exporting nations but lowered energy costs for countries like Australia. While Australian consumers benefited from cheaper fuel, the mining and resources sector faced increased uncertainty and pressure from weaker global commodity markets.<\/li>\n<\/ul>\n
\u00a0<\/strong>2013<\/strong><\/p>\n
- \n
- Australian Factor:<\/strong> Record immigration levels and rising construction costs exacerbated our housing and rental crisis, meaning the many predictions of a housing market downtown did not eventuate. <\/div><\/li>\n
- Global Factor:<\/strong> Rapid adoption of AI reshaped global labour markets, creating new uncertainties in job security.<\/li>\n<\/ul>\n
2023<\/strong><\/p>\n
- \n
- Australian Factor:<\/strong> The RBA\u2019s aggressive interest rate hikes significantly impacted household budgets, with many Australians struggling to manage rising wage repayments alongside elevated living costs.<\/li>\n
- Global Factor:<\/strong> Persistent global inflation, spurred by supply chain issues and central bank policies, strained economies worldwide.<\/li>\n<\/ul>\n
\u00a0<\/strong>2022<\/strong><\/p>\n
- \n
- Australian Factor:<\/strong> Multiple interest rate rises by the RBA to inflation caught many mortgage holders off guard, creating financial stress for those who had taken on debt during the previous period of record-low interest rates.<\/li>\n
- Global Factor:<\/strong> Russia\u2019s invasion of Ukraine shocked global markets, fuelling inflation and an energy crisis.<\/li>\n<\/ul>\n
\u00a0<\/strong>2021<\/strong><\/p>\n
- \n
- Australian Factor:<\/strong> The fracturing of the long-dominant view of low inflation was here to stay. Also, work-from-home trends fuelled a regional property boom, changing property demand dynamics.\r\n\r\n<\/div><\/li>\n
- Global Factor:<\/strong> The global rollout of COVID-19 vaccines provided a pathway to economic recovery, restoring confidence in many sectors despite ongoing challenges.
\nHowever, this recovery was uneven across countries, with supply chain disruptions and labour shortages driving inflationary pressures worldwide.
\nThese factors, combined with pent-up consumer demand and stimulus measures from major economies, created a complex environment of rapid economic growth in some regions and lingering instability in others<\/li>\n<\/ul>\n\u00a0<\/strong>2020<\/strong><\/p>\n
- \n
- Australian Factor:<\/strong> The COVID-19 pandemic caused an unprecedented economic shock, with nationwide lockdowns halting businesses, disrupting supply chains, and forcing millions of Australians to work from home.
\nDespite the initial uncertainty, record-low interest rates, government stimulus measures like JobKeeper, and changes in housing preferences triggered a once-in-a-generation property boom, as buyers sought larger homes and regional properties to accommodate their new lifestyles.<\/li>\n- Global Factor:<\/strong> The pandemic created a global health and economic crisis shutting down economies, grounding international travel, and disrupting supply chains worldwide. Governments and central banks responded with massive stimulus packages, including direct payments, business support, and record-low interest rates, to prevent economic collapse. This unprecedented response, while cushioning the immediate blow, also fuelled asset price inflation globally, with housing markets in many countries experiencing unexpected booms despite the ongoing health and economic uncertainty.<\/li>\n<\/ul>\n
<\/p>\n\u00a0<\/strong>2019<\/strong><\/p>\n
- \n
- Australian Factor:<\/strong> The unexpected federal election win by Scott Morrison boosted confidence among property owners who were worried that labour would bring in oppressive tax measures.<\/li>\n
- Global Factor:<\/strong> Trade tensions between the US and China created uncertainty in global markets.<\/li>\n<\/ul>\n
\u00a0<\/strong>2018<\/strong><\/p>\n
- \n
- Australian Factor:<\/strong> The Banking Royal Commission exposed widespread misconduct in the financial services industry, including poor lending practices and inadequate safeguards for borrowers. As a result, banks tightened their lending criteria significantly, making it harder for buyers to secure loans and reducing credit availability across the property market. This led to a slowdown in housing market activity, particularly affecting investors and buyers in overheated markets like Sydney and Melbourne, and contributed to declining property prices during the year.<\/li>\n
- Global Factor:<\/strong> Escalating trade tensions between the United States and China created uncertainty in global financial markets, disrupting trade flows and impacting investor confidence worldwide. Simultaneously, ongoing Brexit negotiations added to the volatility, as businesses and governments faced significant uncertainty about the future economic relationship between the UK and the European Union.<\/li>\n<\/ul>\n
2017<\/strong><\/p>\n
- \n
- Australian Factor:<\/strong> Property prices in Sydney and Melbourne reached record highs, driven by a combination of low interest rates, strong investor activity, and population growth, intensifying debates around housing affordability, with many Australians feeling locked out of the market and policy makers feeling increased pressure to intervene. \r\n<\/div><\/li>\n
- Global Factor:<\/strong> Global financial markets experienced an unusual period of stability, with low volatility boosting investor confidence and supporting economic growth across many regions.<\/li>\n<\/ul>\n
<\/p>\n\u00a0<\/strong>2016<\/strong><\/p>\n
- \n
- Australian Factor:<\/strong> The surge in foreign investment in Australian real estate, particularly from Chinese buyers, continued to drive demand in major markets like Sydney and Melbourne. However, the government's introduction of tighter regulations and foreign investment taxes in some states created uncertainty and began to dampen activity.<\/li>\n
- Global Factor:<\/strong> The Brexit referendum, where the UK voted to leave the European Union, created widespread uncertainty about the future of global trade and economic stability, leading to volatility in financial markets. Later that year, the election of Donald Trump as President of the United States further unsettled the global economy, with concerns over his trade policies, isolationist rhetoric, and unpredictable leadership style introducing new risks for international relations and economic cooperation<\/li>\n<\/ul>\n
2015<\/strong><\/p>\n
- \n
- Australian Factor:<\/strong> APRA introduced stricter lending restrictions to curb excessive risk-taking by banks, including a 10% cap on investor loan growth and higher capital requirements. These measures forced lenders to tighten credit, reduce borrowing capacity, and increase interest rates on investment loans, significantly cooling investor activity in markets like Sydney and Melbourne. As a result, many investors had to rethink or delay their purchasing plans, shifting the housing market focus toward owner-occupiers.<\/li>\n
- Global Factor:<\/strong> China's stock market crash wiped trillions of dollars in value, sending shockwaves through global financial markets and raising concerns about the sustainability of China's economic growth. The crisis highlighted the fragility of the global economy, as China's slowdown impacted commodity prices and trade flows, particularly affecting resource-exporting countries like Australia, which heavily relies on China's demand for raw materials.<\/li>\n<\/ul>\n
2014<\/strong><\/p>\n
- \n
- Australian Factor:<\/strong> A surge in foreign investment, particularly from Chinese buyers, drove significant demand for new and off-the-plan apartments, particularly in Sydney and Melbourne. The trend prompted growing public debate and government scrutiny, eventually leading to the introduction of foreign investment taxes and tighter regulations in subsequent years.<\/li>\n
- Global Factor:<\/strong> Global oil prices plummeted from over $100 to less than $50 per barrel due to rising US shale production, OPEC\u2019s decision to maintain output, and weakening global demand. This crash hurt oil-exporting nations but lowered energy costs for countries like Australia. While Australian consumers benefited from cheaper fuel, the mining and resources sector faced increased uncertainty and pressure from weaker global commodity markets.<\/li>\n<\/ul>\n
\u00a0<\/strong>2013<\/strong><\/p>\n
- Global Factor:<\/strong> Global oil prices plummeted from over $100 to less than $50 per barrel due to rising US shale production, OPEC\u2019s decision to maintain output, and weakening global demand. This crash hurt oil-exporting nations but lowered energy costs for countries like Australia. While Australian consumers benefited from cheaper fuel, the mining and resources sector faced increased uncertainty and pressure from weaker global commodity markets.<\/li>\n<\/ul>\n
- Global Factor:<\/strong> China's stock market crash wiped trillions of dollars in value, sending shockwaves through global financial markets and raising concerns about the sustainability of China's economic growth. The crisis highlighted the fragility of the global economy, as China's slowdown impacted commodity prices and trade flows, particularly affecting resource-exporting countries like Australia, which heavily relies on China's demand for raw materials.<\/li>\n<\/ul>\n
- Global Factor:<\/strong> The Brexit referendum, where the UK voted to leave the European Union, created widespread uncertainty about the future of global trade and economic stability, leading to volatility in financial markets. Later that year, the election of Donald Trump as President of the United States further unsettled the global economy, with concerns over his trade policies, isolationist rhetoric, and unpredictable leadership style introducing new risks for international relations and economic cooperation<\/li>\n<\/ul>\n
- Global Factor:<\/strong> Global financial markets experienced an unusual period of stability, with low volatility boosting investor confidence and supporting economic growth across many regions.<\/li>\n<\/ul>\n
- Global Factor:<\/strong> Escalating trade tensions between the United States and China created uncertainty in global financial markets, disrupting trade flows and impacting investor confidence worldwide. Simultaneously, ongoing Brexit negotiations added to the volatility, as businesses and governments faced significant uncertainty about the future economic relationship between the UK and the European Union.<\/li>\n<\/ul>\n
- Global Factor:<\/strong> Trade tensions between the US and China created uncertainty in global markets.<\/li>\n<\/ul>\n
- Global Factor:<\/strong> The pandemic created a global health and economic crisis shutting down economies, grounding international travel, and disrupting supply chains worldwide. Governments and central banks responded with massive stimulus packages, including direct payments, business support, and record-low interest rates, to prevent economic collapse. This unprecedented response, while cushioning the immediate blow, also fuelled asset price inflation globally, with housing markets in many countries experiencing unexpected booms despite the ongoing health and economic uncertainty.<\/li>\n<\/ul>\n
- Global Factor:<\/strong> The global rollout of COVID-19 vaccines provided a pathway to economic recovery, restoring confidence in many sectors despite ongoing challenges.
- Global Factor:<\/strong> Russia\u2019s invasion of Ukraine shocked global markets, fuelling inflation and an energy crisis.<\/li>\n<\/ul>\n
- Global Factor:<\/strong> Persistent global inflation, spurred by supply chain issues and central bank policies, strained economies worldwide.<\/li>\n<\/ul>\n
- Global Factor:<\/strong> Rapid adoption of AI reshaped global labour markets, creating new uncertainties in job security.<\/li>\n<\/ul>\n