Efic, Australia’s export credit agency, has released its first edition of Export Monitor for 2015, which examines the country’s export outlook as the Chinese economy rebalances and new opportunities emerge.
“The restructuring of China’s economy will present a new opportunity mix for Australian exporters,” said Efic’s Senior Economist Cassandra Winzenried.
“The diminishing role of the commodity-intensive property and infrastructure sectors of the Chinese economy will continue to pressure Australia’s mining exports. But rising demand from a rapidly expanding Chinese consuming class will provide some offset.”
Efic’s Export Monitor pinpoints diversification of Australia’s export base and expansion of sectors like agriculture and services as key to leveraging China’s market.
According to Efic’s findings, the rural sector could greatly benefit form India’s rapid economic and population growth, which is expected to more than double the country’s demand for food products between 2009 and 2050.
“This will offer significant new opportunities for Australian agribusiness — particularly exporters of vegetables, fruit, dairy products and wheat,” said Winzenried.
“A more competitive AUD, record low interest rates, lower energy input costs and an improving global economy also bode well for diversification of Australia’s mining-dependent export profile.”
Mrs Winzenried added that she was confident that exporter confidence would gain traction this year despite China’s slowing economy and the multiple geopolitical threats to the global growth outlook.