Our central scenario remains for growth in the Australian economy to average a bit above 3 per cent in 2018 and 2019. The latest data have been consistent with this. We also still expect the unemployment rate to move lower over time and to reach 5 per cent at some point over the next few years.
The consolidation and strengthening of the sector has seen improved standards in the running of credit unions and their financial resources but further progress is required on embedding governance, risk management and operational capability. The emergence of larger and more sophisticated credit unions presents additional opportunities.