KEY POINTS
- China is Australia's largest merchandise export market, accounting for $42.5 billion in calendar year 2009 (free on board, value terms). This is followed by Japan ($38.2 billion), the Republic of Korea ($15.6 billion), India ($14.5 billion) and the United States of America ($9.6 billion).
- The Australian Bureau of Agriculture and Resource Economics (ABARE) forecasts that earnings from Australia’s commodity exports will increase by 23.4 per cent in 2010–11 to around $202.5 billion. For energy and minerals, export earnings are forecast to increase by 28.4 per cent to around $169.8 billion in 2010–11, higher expected export shipments and recently negotiated increases in contract prices for coal and iron ore are the main reasons for the increase. ABARE forecasts that export earnings for farm commodities will be around $29.1 billion in 2010–11, up from $28.3 in 2009–10.
- The Australian dollar appreciated significantly both against the US dollar and on a trade weighted basis during the second half of 2009, before a partial reversal in early 2010.
FACTS AND FIGURES
Exports by industry
Total industry exports (current prices) totalled $249.5 billion in 2009, tobe 9.3 per cent lower than in 2008.
- Agricultural exports accounted for 4.6 per cent of total exports in 2009, up from 3.9 per cent in 2008.
- Mining exports accounted for 37.6 per cent of total exports in 2009, down from 39.3 per cent in 2008.
- Manufacturing exports accounted for 32.5 per cent of total exports in 2009, down from 34.1 per cent in 2008.
- Services exports accounted for 21.3 per cent of total exports in 2009, up from 19.2 per cent in 2008.
- Exports not specifically classified to the above industries account for the remaining 4 per cent.
Export volumes and values
Export volumes - as reported in the ABS balance of payments—rose by 1.7 per cent in the December quarter 2009 to be $59.0 billion, to be 3.1 per cent higher through the year, while export values fell by 0.5 per cent to $58.4 billion in the December quarter, to be 25.3 per cent lower through the year. Over the 10 years to the December quarter 2009, export volumes have increased considerably by 23.2 per cent, while export values have increased by 85.9 per cent (see chart 1).
The Australian dollar appreciated significantly against the US dollar and on a trade weighted basis during the second half of 2009, before a partial reversal in early 2010.
Australia’s terms of trade declined in the quarters leading to the June quarter 2009 after a long period of solid growth. Since then, the terms of trade have strengthened.
Australia's export destinations
China is Australia's largest merchandise export market, accounting for $42.5 billion in 2009 (free on board in value terms). This is followed by Japan ($38.2 billion), the Republic of Korea ($15.6 billion), India ($14.5 billion) and the United States of America ($9.6 billion).
Agricultural and resource export forecasts
In its Australian commodities report, June quarter 2010, the Australian Bureau of Agricultural and Resource Economics (ABARE) forecasts that Australia's commodity export earnings will fall increase by 23.4 per cent to around $202.5 billion in 2010–11.
Source: ABS Cat.No. 5302.0
ABARE forecasts export earnings for Australian mineral and energy commodities will increase by 28.4 per cent to around $169.8 billion in 2010–11, compared with its previous estimate of $132.2 billion in 2009–10. The main contributing factors to this forecast are expected higher expected shipments and recently negotiated increases in contract prices for coal and iron ore. ABARE forecasts that export earnings for farm commodities will be around $29.1 billion in 2010–11, slightly up from $28.3 billion in 2009–10.