Trade Resources Industry Views Australia Is Experiencing Record Rural Exports

Australia Is Experiencing Record Rural Exports

Australia is experiencing record rural exports, more opportunities from China’s urbanisation, and global supply chains are having an effect on Australia’s export profile, according to the Export Finance and Insurance Corporation (EFIC).

"Record rural exports are easing Australia’s economic transition,” said EFIC’s senior economist Cassandra Winzenried. “Despite less favourable growing conditions and Russian sanctions, new opportunities in premium niche markets will continue to support overall volumes.’”

China’s urbanisation is also expected to create new opportunities for Australian exporters. Chinese reforms aim to shift around 100 million rural dwellers to towns and cities by 2020, at a cost of US$6.8 trillion.

"A project of this scale is unprecedented. China’s industrialisation has already boosted demand for Australia’s commodity exports, but an increased focus on creating cleaner, greener and more liveable cities will generate new opportunities for non-resources exporters,” said Ms Winzenried.

"As important as China is, it needs to be kept in perspective. New RBA research has found that when international supply chains are taken into account, the US and Europe are Australia’s largest export markets, and services are our largest export sector.

"These findings challenge official trade data and conventional wisdom that China is Australia’s most important export destination, and that mining is our largest export sector..

"Increasingly, Australian exports are inputs into processed goods bound for the North Atlantic via Factory Asia. Therefore, growing momentum in the US economy is good news for exporters.”

 

Source: http://www.tandlnews.com.au/2014/08/26/article/rural-exports-global-supply-chains-and-chinas-urbanisation-affecting-aust-exports/
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Rural Exports, Global Supply Chains and China’S Urbanisation Affecting Aust Exports
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