During 2020, Australia was held up as an example of prosperity, resilience and economic strength. The global health crisis dealt a severe blow to tourism, one of the main sectors of the Australian economy, but the country has been able to recover through export powering in other areas, notably in the energy and food industry, and in the financial sector.
Australia has managed to cope exceptionally well with the COVID-19 crisis over the past 12 months thanks to the development of three sectors: energy and natural resources; food and agriculture; and the finance sector. Through these key industries, in which the country is a world leader, Australia has managed to grow exports and maintain a strong economy during the pandemic.
Energy and natural resources
Australia’s resilience to COVID-19 is underpinned by Australia’s mineral wealth, with the world’s largest reserves of iron ore, gold, lead and zinc, as well as the second largest reserves of bauxite, copper, cobalt, lithium and nickel. Moreover, forecasts for the coming years are extremely positive: iron ore exports are expected to reach A$136 billion and gold exports are expected to reach A$29 billion. On the other hand, the growing demand for minerals used in new low-emission technologies (notably lithium, nickel and copper) is making Australia a major global energy supplier.
Agricultural exports
Australia is a key player in agricultural exports, especially in the Asia-Pacific region, especially through its trade with China. The great diversity of products offered by the country to its buyers (meat, fruit, vegetables, wool, dairy products, etc.) is also characterized by their high quality, which has boosted the economy in this sector, reaching A$48 billion last year.
Financial markets
The Australian financial sector is one of the major assets of the Australian economy. Despite the size of the economy, Australia’s financial markets account for A$10 trillion after a 9% annual growth over the last 20 years. The strength of the sector is evident from an analysis of the most relevant financial data: Australia has the world’s eighth largest over-the-counter foreign-exchange daily turnover, the ninth largest stock market, and the tenth largest debt securities market. Moreover, Australia represents the fifth largest pension system in the world.
All in all, the country has shown exceptional resilience during the pandemic, as Australian exports have helped the country remain strong and united in the face of this year’s health crisis. These three key sectors have secured Australia’s prosperity and will continue to do so for years to come, as these industries are only expected to grow.
Interested in the Australian market? Looking to grow your own exports? Gedeth can help! With experience working on more than 1,000 internationalization projects, we have the contacts and the know-how to help your international activity expand. Contact us to learn more.
