Australian resources and energy exports are expected to reach $299 billion in the next five years, a report released by the Office of the Chief Economist has revealed.
The latest Resources and Energy Quarterly (REQ), published by the Office within the Department of Industry, Science, Energy and Resources, reported the outlook for resources and energy commodities.
Iron ore is forecasted to be the first commodity to top $100 billion in export earnings in a year from 2019-2020.
Australia is also expected to overtake China as the world’s biggest gold producer in 2021, which followed a recent surge in gold mine investment prompted by record-high Australian dollar gold prices.
The effects of the coronavirus outbreak will largely play out by June 2020, as its impacts on China and global GDP continue during the first half of this year.
In the Australia market, oil and based metal prices have decreased, while gold prices have increased as a result of the coronavirus. These shifts are expected to reverse when the Chinese economy returns to its normal state.
Iron ore prices have achieved steady high levels, and coal prices have also steadied after sharp declines in 2019.
However, there is a possibility for new records according to the report.
Australia became the largest exporter of liquid nitrogen gas (LNG) a various points in 2019 as a result of the country’s massive investment.
Other commodities that hold “strong prospects” in the medium term (five years) include copper, nickel and lithium.