China and productivity sees rise in export volumes
Austrade chief economist Tim Harcourt believes that Australia’s relationship with China, as well as productivity gains in the agriculture sector, have contributed to an improvement in our trade figures.
The Australian Bureau of Statistics results from the March quarter revealed that net exports contributed 2.2 percent to gross domestic product, the largest contribution since 1961.
Harcourt points to China’s stimulus package and their focus on their domestic market as areas where Australia have benefited: “The move from export-led development to domestic consumption and investment is starting to have an impact on domestic activity [there]. Also China is substituting some local production in the energy sector, with countries like Australia and Brazil filling the void.”
He added that Australia’s exports had also increased through better supply. “Rural exports are improving thanks to climatic factors and the overall strong competitiveness of Australia’s agribusiness sector,” he noted. “Productivity gains really bear fruit when global competition stiffens during a crisis.”
Australia one of the few countries whose export volumes have not suffered during the global economic downturn.