Amid a year of global upheaval and economic shifts, 2024 showcased the resilience of financial markets. Australian investors navigated fluctuating share markets, currency movements, and domestic challenges like interest rates and housing trends.


The year 2024 was nothing short of eventful, presenting a mix of challenges and opportunities for Australian investors. From fluctuating global markets to evolving domestic policies, it was a period that tested the fortitude of financial markets and investors alike. Yet, resilience triumphed as markets adapted and ended the year with notable gains. Navigating these uncertain waters showcased the importance of strategic planning and a measured response to unpredictability.

Here, we’ll reflect on the key economic and financial developments of 2024 and explore how they reshaped the investment landscape:

Resilient amidst global challenges

Global markets faced a complex set of circumstances, including geopolitical instability and significant political shifts. One of the most watched events was the re-election of Donald Trump in the United States. His administration’s promise of increased tariffs, defense spending, and tax reforms brought global inflationary concerns to the forefront[i]. Additionally, geopolitical tensions in the Middle East and Europe, particularly with Ukraine halting Russian gas flows, triggered supply chain uncertainties[ii].

Despite these challenges, major share markets demonstrated remarkable resilience. The US markets surged, with the Nasdaq gaining over 30% and the S&P 500 and Dow Jones climbing 24% and 13%, respectively[iii]. Australia’s S&P/ASX 200 index shared in the success, ending the year having returned 11.2% and setting 24 record highs despite the broader volatility[iv]. It was a testament to investors’ ability to remain grounded in the face of global disruptions.

The Australian Dollar’s rollercoaster year

Currency markets also reflected the fragility of global economies. The US dollar soared to a two-year high, while the Chinese yuan weakened, culminating in the Australian dollar slipping to a two-year low, finishing the year at just under 62 US cents[v]. This depreciation, although challenging for international purchasing power, provided a boost for export-driven industries.

Interest rates and cost of living

Domestically, interest rates took centre stage. Following five sharp rate rises in 2023, the Reserve Bank of Australia (RBA) held the cash rate steady at 4.35% throughout 2024[vi]. This reflected a cautious approach as inflation, while falling, remained a concern. The September quarter saw inflation ease to 2.8%, a significant relief from the alarming 7.3% two years prior[vii].

Australia’s cost of living also improved, thanks to declining electricity and fuel prices. However, economic growth slowed, with GDP expanding by just 0.8% across the three quarters to September[viii]. This sluggish performance, the slowest in decades, highlighted the lingering effects of higher interest rates on consumer spending and corporate activity.

The housing market balance

2024 was a mixed bag for Australia’s housing market. National home values dipped slightly in December, showing a modest 0.1% decline to a median price of $815,000[ix]. However, annual growth stood at 4.9%, reflecting the market’s robustness overall.

Regional trends varied, with Sydney, Melbourne, and Hobart experiencing price falls in the latter half of the year, while Perth and Brisbane enjoyed sustained growth[x]. These disparities underscored the need for location-specific strategies for property investment. With housing affordability continuing to be a social and political focus, investors are encouraged to monitor government policies that may influence demand and supply dynamics.

The strong performance of share markets

The standout feature of 2024 was the impressive performance of global equities. Australian share markets participated in this trend, buoyed by strong performances from resource and financial sectors. The S&P/ASX 200 reached new milestones, ending the year at 8159 points[xi].

What bolstered these gains was the strong recovery of super funds, with the median balanced option achieving a return of 11.5%[xii]. Investors with diversified portfolios benefited significantly, emphasising the importance of holding a mix of asset classes to balance risk and reward.

Commodities in focus

Commodities experienced mixed fortunes. Gold emerged as a standout performer, achieving an all-time high in October and nearing 40% for the year as investors sought safe havens amidst global turmoil[xiii]. Conversely, iron ore prices continued their downward trajectory, now sitting at half the value of their 2021 peak[xiv].

Oil prices remained subdued, influenced by fears of overproduction and geopolitical uncertainty. However, optimism surrounding China’s economic prospects in 2025 has sparked hopes for a recovery.

Adapting to uncertainty

The events of 2024 underscored the reality of operating in an unpredictable environment. Whether it was navigating geopolitical disruptions, currency fluctuations, or domestic economic shifts, strategic planning proved essential. Investors who embraced a long-term perspective, stayed informed, and made decisions aligned with their goals fared best during the year’s turbulence.

Looking forward, familiar themes of uncertainty will persist. Share market volatility is expected to continue, shaped by global political developments and events like Australia’s upcoming federal election. Economists anticipate potential rate cuts in 2025, depending on inflation and economic growth trajectories. For investors, these changes demand an adaptive mindset and a proactive approach to portfolio management.

2024 reaffirmed the importance of strategic planning, diversification, and a steady focus on long-term goals. While no one can predict the future, well-prepared investors have demonstrated their ability to not only weather storms but also thrive in uncertain times.

If you would like more information on the Australian and Global economic markets, or if you would like to discuss the impact on your portfolio, contact our office today.


DISCLAIMER: All information on Focus Wealth Advisers is general in nature and does not take into account your personal objectives, financial situation or needs. You should consider your personal circumstances and seek professional advice before making any decisions based on this information.

[i] Tax Foundation (2024) Questions About Tax Cuts, Tariffs, and Reconciliation After the Election

[ii] The New York Times (2025) Why Did Ukraine Halt the Flow of Russia’s Natural Gas to Europe?

[iii] Axios (2024) Stocks finish strong 2024 with a whimper

[iv] The Motley Fool (2024) ASX shares in 2024. A year in review

[v] Xe (n.d.) Australian Dollar to US Dollar Exchange Rate Chart

[vi] Reserve Bank of Australia (n.d.) Cash Rate Target

[vii] Reserve Bank of Australia (2025) Measures of Consumer Price Inflation

[viii] ABS (2024) Australian National Accounts: National Income, Expenditure and Product

[ix] CoreLogic (2025) National home values record first decline in almost two years

[x] Realestate.com.au (2024) A tale of two markets: Why home prices in half of Australia’s capitals keep surging while others slump

[xi] Morningstar (2024) S&P/ASX 200 Benchmark Index Rises 7.49% This Year to 8159.10 – Data Talk

[xii] Lonsec (2024) Media release: Funds deliver 11.5% return for 2024

[xiii] Gold Rate 2024 (2025) Historical Gold Price and Charts in Australian Dollar

[xiv] Business Insider (2025) Iron Ore