The Export Finance and Insurance Corporation’s (EFIC) Export Monitor newsletter considers the outlook for exports to Asia beyond commodities.
"Tourism and education exports will continue their rapid expansion, driven by especially strong demand from China and other large Asian economies,” said EFIC’s senior economist Cassandra Winzenried.
Agricultural exports are expected to reach a record $41 billion in 2013-14. “Australian businesses are winning niche sales in premium markets, by trading on Australia’s ‘clean and green’ image.
"Australia’s mid-sized food businesses are in a great position to capitalise on rapidly growing Asian consumer demand for scandal-free products. Foreign investment trends and trade policy developments will boost non-resource export potential.”
Despite constituting just 2% of Australia’s overseas investment stock, Australian investment in China increased by an average annual rate of 33% over the five years to 2013.
"Australian investment into Asia looks set to continue its rapid ascent, reinforcing the strong trade relationship. However, the stubbornly high Australian dollar is weighing on current export conditions.”
The ACCI–Westpac Survey of Industrial Trends found that a net 2% of respondents expect exports to decline in the coming three months — the first negative reading since 2011.
"RBA Governor Glenn Stevens has suggested the dollar is high by most standard metrics, and a correction would certainly provide welcome respite to Australian exporters.”
