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What does a Biden Harris victory mean for the Australian economy?

Written and accurate as at: Nov 11, 2020 Current Stats & Facts

Economic and Market Implications of a Biden presidency for Australia

With the increased fiscal stimulus on infrastructure and healthcare and the growing possibility of an effective vaccination being deployed throughout the population next year the US economy should continue to recover from COVID. This will benefit the Australian economy.

An increased focus on sustainability in the US may also force Australia and Australian companies (that engage with the US) down a more aggressive response to climate change too. There is a slightly more positive outlook for global shares relative to US shares, particularly in emerging markets assets, ESG stocks, healthcare and infrastructure.

The probability of easing trade wars due to more diplomatic measures bode well for Australia and China to reduce some tensions that have been ramping up recently, helping our exports to China and supporting Australian exporters and the Australian dollar. 

There is a possibility of another lockdown to reduce growing coronavirus cases and there are uncertainties around US civil tensions in the aftermath of the election. This could lead to short term stunted economic growth and volatile markets but fiscal stimulus, the prospect of an effective vaccine and more controlled coronavirus measures, policies promoting greater sustainability and probable toning down of trade wars see the Biden Harris victory as benefitting Australian shares and the Australian dollar, overall.

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