SYDNEY--Australia's earnings from resources and energy exports
are expected to rise by 13% in the current fiscal year, as sharp
rises in shipments and a weaker domestic currency offset falls in
commodity prices.
The Bureau of Resources and Energy Economics, the Australian
government's commodities forecaster, said it expected earnings to
reach 199.40 billion Australian dollars (US$182.69 billion) in the
year through June, up from A$176.05 billion in the 12 months
prior.
It forecast earnings to keep rising by an average of 8% a year
over the next five years, to total A$284.42 billion in the year
through June, 2019.
"Higher export earnings will be driven by the substantial growth
in volumes of a number of commodities despite near- term softness
in prices," executive director Bruce Wilson said in the quarterly
report.
Substantial growth in iron-ore exports, as companies like Rio
Tinto PLC (RIO) continue to expand mining operations in the
country's northwest, will help underpin the rise in the next few
years, he said.
However, "as new liquefied-natural-gas production capacity comes
online over the outlook period, LNG exports will increase to become
one of Australia's principal exports and support further growth in
export earnings," Mr. Wilson said.
The forecasts paint a more positive picture for Australia's
economy, which has been stuck in a low gear as falling commodity
prices prompted many mining companies to shelve or scale back new
investments. Australia remains heavily dependent on mining, with
iron ore and coal its largest exports.
Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires