Current outlook
Looking ahead, VicSuper sees two distinct paths of recovery which the global economy may take. The first is recovery through business as usual, where governments encourage consumer consumption with the aim of boosting employment and economic growth. This would involve people purchasing more products and services, therefore increasing business revenue and leading to further employment opportunities.
Increasing consumption will require more credit to be made available for businesses and consumers. This is unlikely to be sustainable over the long term, and may lead to further boom and bust periods, and therefore continued investment uncertainty.
The second path is a coordinated global move to a low carbon economy. This would involve investment in renewable energy and energy efficiency, plus further protection for the planet's natural environment. It's achievable if governments and businesses recognise the planet's resources are limited - and that a new approach is now needed.
Take climate change, for example. The likely impact of more frequent and intense weather events is a threat to long-term economic growth. This would impact company profitability, the primary source of superannuation investment returns.
But moving to a low carbon economy can offer investment opportunities such as low carbon products, green infrastructure projects and more renewable energy. All of which would help to boost employment, support economic growth and build long-term wealth for super fund members.