Oz Household Wealth Drops $9982
SYDNEY: Average household wealth dropped 2.3pc – or $9982– to $428,585 per person, the largest decrease since the September quarter 2011 and largely due to the coronavirus, according to new figures from the Australian Bureau of Statistics (ABS).
ABS chief economist Bruce Hockman said: “The March quarter 2020 financial account reflects the Australian financial markets’ early response to the economic uncertainty brought on by the covid-19 pandemic.”
The report says that private trading corporations, superannuation, non-financial and non-money market investment funds all responded to the events of the March quarter 2020.
In the second half of the quarter, institutional investors became more reluctant to take risks. This reduced the ability of financial institutions to balance exposure to short-term deposit liabilities with long term loan assets, Stats says.