Weaker dollar to support resources and energy export earnings in 2013–14
26 June 2013
Australia's resources and energy commodity export earnings are estimated to be $177 billion in 2012–13 according to the Resources and Energy Quarterly—June Quarter 2013, released today by the Bureau of Resources and Energy Economics (BREE).
'Large fluctuations in equity and foreign exchange markets, coupled with weakening sentiment have negatively affected the price of some resource commodities, particularly precious and base metals' said Professor Quentin Grafton, BREE's Executive Director and Chief Economist. 'The largest fall was in the price of gold, which declined in value by 12 per cent in one week during April' Professor Grafton added.
Evidence of softening in the Chinese economy and concerns surrounding the tapering off of the US Federal Reserve's quantitative easing before the end of 2013 contributed to a more than 10 per cent depreciation of the Australian dollar relative to the March quarter 2013. 'While a depreciating dollar increases the Australian dollar value of resources and energy exports denominated in US dollars, this was more than offset in 2013 by weakening commodity prices' Professor Grafton said.
'The nominal value of resources and energy exports is forecast to increase by around 11 per cent to A$197 billion in 2013–14' according to Professor Grafton. 'An assumed depreciation of the Australian dollar–US dollar exchange rate in 2013–14 will provide support for Australian dollar denominated resource and energy exports'.
The release also contains reviews on the value of Australia's mineral and energy resources between 1990 and 2012; productivity in Australian mining; and key facts, figures and trends in Australian energy.
For free downloads of the Resources and Energy Quarterly report, please visit the BREE website.
For media enquiries, contact Quentin Grafton on 02 6243 7483 or firstname.lastname@example.org.