John Virgoe - Australian Economy Webinar Presentation

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Australian Economy Webinar

John VirgoeFirst Secretary, Economic & Climate Change

British High Commission, Canberra5 December 2012

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Outline of Presentation

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1. Issues facing the Australian economy

2. Broad economic trends

3. UK-Australia trade relationship

1. Issues facing the Australian economy

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Election politics: in reality, much common ground between the parties. But expect fireworks over:

• The carbon “tax”

• Economic stewardship

• Unconventional gas

• Labour relations and productivity

Economic gloom: why are Australians so depressed?

Risks and worries:

• The two-speed economy

• The Eurozone crisis

• Fiscal contraction

2. Broad economic trends

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• Solid economic growth, with structural change.

• The shift to Asia.

• Changing consumption patterns.

3. UK-Australia trade relationship

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Trade (continued)

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• Sterling down 40% against A$ since 2008

• UK has 3.9% share of Australian imports.

• Strengths in (goods): Cars, pharmaceuticals, sophisticated machinery & equip.

• (services) Travel, transport, insurance, business services, construction services.

• UK is Australia’s 6th most important importer, and sixth largest two-way trading partner. Australia is our eleventh biggest market.