Although the first collective investment scheme in Australia was launched in the 1930s, the fund industry did not become particularly popular until the 1980s. This is primarily due to the fact that both the distribution channels and the funds themselves will overlap, benefiting successful managers. At the time of the 1997-98 budget, faster economic growth was expected and has occurred. The economy has been helped by having inflation at its lowest level since the 1960s and an easing of monetary policies. Trading conditions, sales and output are all expected to improve further, which is also reflected in business confidence being at a relatively high level.
Consumer spending continues to grow strongly.
The government budget deficit decreased in 1995 and 1996 and was projected to run into surplus for the 1997 year, partly as a result of asset sales with the surplus increasing in the 1998 financial year. The business climate can be categorized as stable and generally favorable. Whilst the previous labor government allowed some investment in the airline industry, and the new government has partly privatized the telecoms company, both governments have been mildly protectionist, and are particularly so of the media and banking industries. The political mood regarding foreign investment is said to be ambivalent. Many major international banks and investment banks are present.