Australia's Economy

Risky business Australia’s sovereign wealth fund – the Future Fund – was established 15 years ago when the rivers of gold from selling iron ore to China were just starting to flow and country was only about half-way through its record-setting 28 years of economic growth. The Future Fund’s

Departure call While Australian exporters were shocked by the pace and extent of China’s trade sanctions last year, it now appears that investors were more quietly making their own exit. Australian Bureau of Statistics (ABS) annual country data released last month shows that Australian

In much of the world, Covid-19 infections continue apace, but the global economy is rapidly recovering from last year’s slump. World trade volumes and industrial production were both higher in January than they have ever been, according to data collected by the Netherlands central bank. Releasing

Beginning last May, China has hit Australia with a barrage of trade sanctions in a fairly overt attempt at economic coercion. It’s still early days, but it’s worth taking stock of what the economic impact has been so far. The fact that China’s trade sanctions have taken place

Food for thought Picking winners and sacrificing national interests are two things that conservative politicians usually like to hold out as anathema. But it says a lot about how the meltdown in relations with China is changing economic diplomacy that they are exactly what the federal

Going outOne of the big questions facing Australian companies in the new world of reshoring and diversification is how to get the balance right in a time of disruption and power shifts. The federal government and two recent independent reports have told business to invest more in Asia, against the

Although Melbourne’s secondary wave of coronavirus infection has been a significant setback, Australia’s economic recovery from the pandemic is well underway. We must now grapple, however, with the enduring aftermath of high and rising unemployment, a sharp increase in government debt, a

Going out or staying in With Australia experiencing its first recession in a generation, potential differences are emerging over whether future prosperity will come from more business integration with high-growth Asia or from preserving capital for economic sovereignty at home. These, of course,

Multilateralism lives With European leaders having just spent five days in close-contact negotiations in Brussels and now Australia’s first offshore ministerial visit for almost five months to Washington, a post-Covid diplomatic agenda is tentatively taking shape. Just what Covid 19 might

Costing the D word Diversification might be the word of the moment in the lexicon of Australian trade debate, even though few advocates make much attempt to explain how it will actually work. But now we have two interesting efforts to quantify just how selected reductions in trade with China in

China syndrome Former Trump administration economic adviser Kevin Hassett had a backhanded compliment for Australia amid this week’s financial market turmoil when he described it as a closely watched proxy for the Chinese economy. Complaining that Chinese data on the recovery from coronavirus

The discussion about China’s bid for baby-formula supplier Bellamy’s Organic shows the usual confusion about just what should guide decisions on foreign investment in Australia. Of course there will be some proposals that are defence-strategic. But baby formula is not one of them. Nor is

Investment: smaller is bigger There was a time when Asian investment in Australia was all about getting access to scarce resources and if Australia really punched above its weight in regional affairs, it was due to its lucky endowment of iron ore, coal and gas. The debate about how we best exert

This week’s Economist magazine features Australia on the cover with the caption: “Aussie Rules: what Australia can teach the world”. Inside, the text is effusive: Australia is “the wonder down under”, “possibly the most successful rich country”. How times (and predictions) change!

Prime Minister Malcolm Turnbull returned from Washington last month even more convinced of the need for deep cuts in Australia’s 30% corporate tax rate, which is well above that in the US. Given the numbers in the Australian Senate, however, it is unlikely the proposed tax cut will pass. How

On Friday, news broke that the Chinese Embassy had issued a statement in Mandarin on its website urging all Chinese students in Australia to protect their safety. This was reported to have alarmed the university sector, which interpreted the statement as a veiled threat in retaliation for

Australia has formally lodged a complaint against restrictions some Canadian provinces have placed on the sale of imported wine in grocery stores, in what has been described, somewhat dramatically, as a 'wine war'. Australia's action was described in the Ottawa Sun under the headline&

In Choosing Openness Andrew Leigh makes a robust, refreshed case for free trade and investment. Both are important sources of the acceleration of global output growth over the last two decades, and of Australia’s long economic expansion since 1991. But while the case for relatively free investment