Australia’s energy and resources exports are expected to hit a record $293 billion this financial year, with the ripple effect of coronavirus hurting forecasts over the next few years.
A government report on the sector released on June 29 looks at how the coronavirus pandemic will change the outlook for energy and resources production and exports.
It found the outlook is still relatively strong despite COVID-19 affecting the sector in various ways.
Falling prices in energy commodities are being outweighed by strong gold and iron ore prices, the Resources and Energy Quarterly says.
Although prices for other commodities such as coal and liquefied natural gas have fallen, export volumes for most commodities have been resilient.
Resources and energy export earnings are expected to dip to $263 billion next financial year and $255 billion the year after.
This fall from record highs will be caused by lower prices for iron ore, LNG and coal.
But the forecasts could be further hurt by a second outbreak of coronavirus, a surge in trade tensions or a slower than expected global recovery.
However, the report says it’s likely the sector will buffer the Australian economy against external headwinds.
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