Agriculture export earnings by Australia, the largest wool and beef shipper, may decline next financial year on concern that global economic growth will slow, according to the government’s commodity forecaster.
Earnings from farm, forestry and fisheries products may total A$38.9 billion ($41.5 billion) in the year from July 1, the Canberra-based Australian Bureau of Agricultural and Resource Economics and Sciences said today. That compares with A$39.2 billion a year earlier, it said.
“One of the main risks is the international economy,” Paul Morris, executive director, said yesterday. “We are still very dependent on what happens globally and if the Europeans don’t get things in order over there, then there’s a flow-on effect to their purchases from some of our major buyers.”
China pared the nation’s economic growth target to 7.5 percent from an 8 percent goal in place since 2005 yesterday, a signal that leaders are determined to reduce reliance on exports and capital spending in favor of consumption. Private creditors have reached an agreement with Greek and European officials on the biggest sovereign debt restructuring in history, seeking to reduce Greece’s borrowings by about 106 billion euros and lower debt to 120.5 percent of gross domestic product by 2020.
Farm-export earnings, including crops and livestock, may total A$35.1 billion in 2012-2013, while forest and fisheries exports may total A$3.8 billion, the bureau said.