EXPORTS of resources and energy are expected to increase in value in 2017-18 to reach a record of $214bn, according to the latest edition of Resources and Energy Quarterly, published by the Office of the Chief Economist.
These projected increases are expected to be driven by growth in LNG and iron ore exports.
But in 2018-19, export earnings are expected to fall to $200bn, due to prices weighing more heavily on earnings.
The outlook for iron ore isn’t particularly rosy, with the Chief Economist predicting moderation in Chinese steel production and increasing supply will weigh on iron ore prices.
However, looking at the big picture, global economic activity is on an upswing, with industrial production growing by 3.5% in the September quarter, the fastest rate of growth since 2011.
The report also estimates world merchandise trade in 2017 has grown at its fastest rate in six years, but protectionist policies pose a risk to the medium outlook for trade.
Minister for resources and Northern Australia Matt Canavan said resources and energy export earnings continue to set records as a result of 15 years of investment in resources and energy projects.
“Our resources sector continues to lay the foundation for the Australian economy, but we can’t take this for granted,” he said.
“It’s important that we plan for the future through new investments and new mines, across Australia’s range of commodities.”