Australia

WHAT'S NEXT?: Australia will no longer be known for being as dependant on the export of natural resources over the next half century as in 2012. The need for new infrastructure to meet the strong population and economic growth of Australia will continue to be a priority for the medium term. There's no doubt the aftermath of China's credit boom poses a much bigger economic threat to Australia than Britain's withdrawal from the European Union. The Growth rate for Australia is expected to be stronger, although still below the long-term trend.

• [New] Over the longer term, $2 billion to $3 billion in support of the hydrogen industry will be required for Australia to succeed in this new global market.
• [New] The CRC is seeking to unlock $13 billion of agricultural opportunities for the north of Australia including the potential water market between Western Australia, the Northern Territory and north Queensland.
• [New] Affordable housing tenants across Australia could find themselves with nowhere to go this year, as key funding that supports lower rents runs out amid the coronavirus pandemic.
• [New] Ten export hubs from five states will receive more than $4.9 million under the SME Export Hubs Initiative and include industries where Australia has large growth potential including food and agribusiness, energy, advanced manufacturing and mining services.
• [New] This year, Australia is forecast to exceed its 2020 emissions reduction target by some 411 million tonnes (or around 80% of a full year's emissions).
• [New] The contraction of the Australian economy in the April-June period could approach 25% and lead to the largest annual decline in more than three centuries.
• [New] Australia led the development of a resolution on cervical cancer elimination, supported by 50 co-sponsors, which will see the World Health Assembly adopt a global strategy to eliminate cervical cancer as a public health problem, with clear targets for the period 2020-2030.
• [New] Oil supply in 2020 is forecast to show growth only in Norway, Brazil, Guyana and Australia.
• The Reserve Bank of Australia, releasing its first major economic forecasts since the advent of the coronavirus pandemic, expects unemployment to reach 10% in the June quarter and recede only slightly to 9% by the end of the year.
• BP believes that green hydrogen, produced using renewable energy, will play an increasingly important role, particularly in parts of the world with high renewable energy potential, such as Western Australia.
• An Australian hydrogen industry could generate about 8,000 jobs, many of which will be in regional Australia, and about $11 billion a year in GDP by 2050 through both domestic and export opportunities.
• Many temporary Australian visa holders have gone back home after losing their jobs and there is expected to be a dramatic fall in migration over the next few years, with the Government projecting an 85% fall in 2020-21.
• Westpac expects the Australian economy to decline by more than 8% over the year to September and house prices to fall around 20%.
• The Australian economy is expected to record a contraction in GDP of around 10% over the first half of 2020; total hours worked are expected to decline by around 20% and the unemployment rate is forecast to rise to around 10% in the June quarter.
• Although total grain feed consumption in Australia is expected to fall next year, sorghum feed use is expected to rise.
• Australia's barley exports are expected to increase during the coming decade from 5.0 million tons in 2020/21 to 7.1 million tons by 2029/30.
• Australia's economy might be headed towards recession, with a negative GDP growth forecast for at least the March and June quarters amid uncertainty brought by the global economic fallout.
• Following several years of drought in Australia, recent rainfall across its main wheat producing areas has created far better soil moisture and could see their 2021 wheat planted area up from 10.1m ha to 12m ha.
• Australia is the fourth-largest beef exporter, with projected exports increasing to 1.6 million tons by 2029, adding 0.1 million tons to world exports.
• The Australian Energy Market Operator (AEMO) revealed the National Energy Market already has the technical capability to provide 75% of energy from wind and solar by 2025.
• The Australian forestry industry could potentially treble its production value to up to $300 million per annum and create 600 new jobs over the next five to ten years.
• Rystad Energy predicts that if low prices persist - and most forecasts suggest low prices for years - nearly 42% of Australia's gas resources would be rendered uneconomic - a scary thought to the world's largest gas exporter.
• A U.S.-developed space surveillance telescope has been assembled at a new facility in Western Australia and is expected to start operating in 2022.

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Last updated: 22 May 2020