Australia’s resource and energy commodity export earnings are forecast to increase to AUS$176 billion in the 2017 Financial Year (FY17), according to a recent report from Australia’s Department of Industry, Innovation and Science. This compares to AUS$157 billion in FY16.
Earnings are expected to be boosted by spikes in metallurgical coal and iron ore prices, the report said.
“The spikes reflect unexpected supply disruptions in Queensland and China, as well as the strength of the Chinese construction sector. Export values have also been supported by the Chinese government’s efforts to stimulate its economy,” the department said in a media statement.
There was also a note of caution to the outlook, however, with the report noting the “temporary nature” of the factors that have driven prices higher. As a result, “it is likely that the price increases will be temporary with falls in coal and iron prices expected in 2017.”
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