Partly cloudy
10 °C
Germantown, Maryland
Partly cloudy

Mon Oct 22 2018
none

INDUSTRIAL ACTIVITY PROVIDES IMPETUS FOR STRONGER GLOBAL TRADE

28-04-2017
by 
in 

Available now, the April edition of Efic’s World Risk Developments examines the impacts of Cyclone Debbie on coking coal exports; questions whether stronger world trade growth will boost Australian commodity producers; and looks at the potential for US trade policy diversification.

Coking coal prices have doubled in the last few weeks driven by supply disruptions in Queensland due to tropical Cyclone Debbie. Cassandra Winzenried, Chief Economist at Efic says that industry estimates suggest about 12Mt of coking coal could be affected, with China likely to look at other markets to fill the supply shortfall.

Meanwhile, robust industrial activity is providing the impetus for stronger global trade, which should support Australia’s commodity exports. “When you strip out the impact of volatile commodity prices, trade volumes growth has improved significantly,” says Winzenried. “This is supported by robust manufacturing output in both advanced and emerging economies.”

Winzenried points out that Australia’s export receipts are growing at double digit pace, led by stronger resource exports. “Upbeat sentiment data suggests the improving global trade trends should continue over the coming months.”

Meanwhile, in the USA, the Treasury has told Congress that China does not meet the criteria for currency manipulation. “Specifically, China does not meet Treasury’s third benchmark, which is repeated purchases of foreign currency that amount to more than 2% of GDP,” says Winzenried.

Other nations covered in this month’s edition of World Risk Developments include Turkey, Thailand, South Africa, Iran, and Vietnam.

The April 2017 edition of World Risk Developments is available via the Efic website.

Efic
1800 093 724
www.efic.gov.au

Related news & editorials

  1. 22.10.2018
    22.10.2018
    by      In
    St.George Banking Group, UNSW Sydney and the Advanced Manufacturing Growth Centre (AMGC) are teaming up to advance Australian research and accelerate the introduction and commercialisation of new manufacturing technologies.
    The alliance brings together three different strands of the national... Read More
  2. 09.10.2018
    09.10.2018
    by      In
    Integrated Office Solutions has an intriguing proposition for any company (manufacturing or otherwise) that is experiencing difficulties recruiting and retaining staff in roles that are not location dependant. Why not outsource the roles or set up a team in a country where skills are plentiful and... Read More
  3. 08.10.2018
    08.10.2018
    by      In
    The latest SME Growth Index from Scottish Pacific reveals that more businesses are in growth mode than at any time since March 2016. However, manufacturing SMEs are more negative about revenue growth. Just 46% of the manufacturing SMEs (with turnovers from $1 million to $20 million) are expecting... Read More
  4. 02.10.2018
    02.10.2018
    by      In
    Australia’s manufacturing sector has capped off a 24th consecutive month of growth with the Ai Group’s Australian PMI increasing to 59.0 in September. With all areas of activity continuing to grow and the new orders subindex reaching a six-month high of 62.6, the overall growth shows no signs of... Read More