Australia’s two-speed economy paints a sobering picture for small businesses

In the heart of Sydney’s financial district, the Australian Securities Exchange (ASX) ticker flashes green, signalling another day of gains. Yet, just a few blocks away, a “For Lease” sign hangs in the window of what was once a thriving family-owned café. This stark contrast epitomises Australia’s current economic landscape paradox – a booming stock market while small business closures and cost of living reach record levels. Are we witnessing a tale of two economies, or is the truth more complex?

The ASX 200 has shown remarkable resilience with 77% growth since March 2020. This surge typically signals a robust economy, with investors confident in future growth prospects. 

However, beneath this veneer of prosperity, there’s a troubling reality that doesn’t indicate a boom at all.