The Economic News Thread

[rev]

The Australian Dollar is almost at parity with the US Dollar in nearly 30 years. It's predicted to be 1 for 1 by Christmas.


Obviously not good for our exporters. How does this affect our miners in particular? Do they sell at fixed rates/prices?
But imports should become cheaper, I think it usually takes a month or two to filter through?
I need a new tv and laptop.

[Wayno]

Obviously not good for our exporters. How does this affect our miners in particular? Do they sell at fixed rates/prices?

Raw mined material is typically pre-sold on contract - the miners and customers worldwide are well known to each other.

Just as with any international business, miners hedge where possible to minimise the impact of currency fluctuations.

[AtD]

However there is quite a healthy spot market for commodities, and the contracts and hedges have to be renewed every now and then.

[Will]

From news.com:

This article is not about SA as such, however I think it is the first time I have read an article which has classified SA as a resource state along with WA and QLD. It is also good to see that our population growth rate is ''ábove average''

WA and ACT economies outperform rest of nation
From: AAP October 24, 2010 11:43PM

WESTERN Australia and the ACT are outperforming the economies of the other states and territories across Australia, a survey says.
Commsec's latest State of the States' report, which compares the economic performance of each state and territory, said the economies of the ACT and Western Australia were "outliers" compared to the rest of the nation.

"In the ACT, dwelling starts are a massive 72 per cent above the decade average while unemployment is the lowest in the nation and well below what has been regarded as 'normal' for the territory," Commsec chief economist Craig James said in a statement on Monday.

"In addition the ACT is benefiting from above-population and economic growth."

Mr James said the economy of resources-dependent Western Australia was also "a standout".

"Economic growth in Western Australia is the fastest in the nation and well above its 'normal' level," he said.

"In addition, construction is soaring due to the mining boom - a massive 88 per cent higher than decade averages."

The economies of NSW and Queensland were performing less impressively, Mr James said.

"NSW and Queensland are the only states where dwelling starts are below decade averages," he said.

"Further, economic activity in NSW is only 14 per cent above its decade average, compared with 32 per cent in Western Australia."

"And currently population growth is above "normal" in all states and territories except Queensland."

Australian consumers continued to be cautious, with the prospect of a future interest rate rise weighing on the outlook for businesses and the property sector, Mr James said.

"Housing markets have slowed across the nation over 2010 and the trend is expected to continue through to 2011," he said.

"Similarly, consumers and businesses have also been reluctant to spend over the year and any improvement will be contingent on more settled conditions on global financial markets as well domestic interest rate settings."

Mr James said the outlook remained buoyant for the mining states but others sectors would feel some pain.

"The key resource states of Western Australia, Queensland, Northern Territory and South Australia will benefit from on-going industrialisation and urbanisation in China and India," he said.

"But it won't all be one-way traffic as a high Australian dollar will negatively impact tourism, export and import-competing sectors in the all states and territories including those dependent on commodities."

[Will]

From the Advertiser:

Bumper grain crop tipped to be state's biggest ever

NIGEL AUSTIN From: The Advertiser November 05, 2010 12:01AM

SOUTH Australia is edging tantalisingly closer to the state's largest and most valuable grain crop ever - tipped to be worth close to $3 billion.

Official State Government forecasts yesterday significantly upgraded the crop size to a record 9.62 million tonnes, well above its 7.25 million tonne estimate in early September.

A large crop was welcomed yesterday because a successful grain crop has the greatest potential of all to provide a short-term economic stimulus to the state economy.

The harvest started last week in the Port Pirie and Crystal Brook areas with the main harvest running about two weeks late and is not expected to get underway seriously until mid-November.

South Australian Farmers Federation president Peter White said a large crop would rescue some farmers from financial ruin.

"Not too many farmers have made a profit growing grain since 2004 due to low prices and drought," he said.

Mr White said the amount of debt in farming businesses was very high and this year wouldn't solve the problem, but would help them get back on their feet.

Analysts yesterday estimated that a 9.62 million tonne grain crop would be worth about $3 billion to the state, based on current commodity prices.

Premier Mike Rann welcomed the large crop which he said would stimulate regional economies and boost exports.

"Our farmers have been blessed with good growing conditions in recent months," Mr Rann said.

Rural Directions director Chris Heinjus warned the crop was not in the bag yet and would require freedom from bad weather, mice, locusts and disease through to the end of harvest.

Mr Heinjus said many farmers were nervous about successfully harvesting the record crop, with long-range forecasts for wet conditions through to December.

Callum Downs Commodity News analyst Malcolm Bartholomaeus said there was an increased risk of rain during harvest because of the La Nina weather pattern this year.

But grain downgraded to stock feed would receive the same price as premium wheat last year because of high global demand.

Viterra Inc's executive manager grains Dean McQueen said the company was doing everything possible to prepare its storage and handling network for this year's record crop, but warned there would be pressure on some parts of the system

[AtD]

State economic growth for 2009/10 was released today. WA, SA and NSW were the only states to record positive growth per capita.
http://abs.gov.au/ausstats/[email protected]/mf/ ... enDocument

Code: Select all

Gross State Product 2009/10 Growth

AUS   2.3
---------
NSW   1.7
VIC   2.0
QLD   1.6
SA    1.5
WA    4.3
TAS   0.4
NT    1.3
ACT   0.9

Economic growth per capita

[yousername]

WA is doing amazingly, alright job by SA, an increase and getting up there with the other important states.

[crawf]

Major projects in South Australia hit record $80 billion
http://www.adelaidenow.com.au/business/ ... 5961281520

THE value of major developments in SA has hit a record $80 billion, with almost half generated by the booming minerals and resources sector.

The South Australian Major Developments Directory shows an extra $8.5 billion worth of projects across the state in the past year.

The figure has almost doubled since 2007, when there was $44.8 billion worth of major developments in SA.

Premier Mike Rann released the directory at the South Australian Investment Symposium this morning.

A breakdown by sector reveals:

- $36.3 billion in minerals and energy,

- $17 billion in urban development,

- $8.6 billion in defence,

- $5.2 billion in manufacturing and industrial development.

- $4.8 billion in education and health,

- $4.68 billion in infrastructure and

- $3.5 billion in water management.

Mr Rann said the figures showed investors still had confidence in SA.

"This figure has been rising steadily over recent years despite the global economic downturn and reflects the emphasis this government is placing on infrastructure expansion and renewal, as with all high levels of investor confidence in SA's future," he said.

"Major projects have widespread economic spin-offs, particularly in job creation and skills development."

[Will]

From the Messenger:

Foreign students on the rise

Local News2 Dec 10 @ 02:12pm by Jessica Whiting


INTERNATIONAL ENROLMENTS AT THE CITY’S universities look set to surpass last year’s record numbers, despite the strong Australian dollar and tightening of visa restrictions.

An Adelaide University spokeswoman Kate Husband said the strong Australian dollar was not expected to deter potential students with 600 international applications already received for the 2011 first semester, which was up on last year.

“This continues a five-year trend of consistent growth from the international student market,” she said.

“Between 2005 and 2010, enrolments from the international student sector almost doubled.” Ms Husband said students continued to be attracted to Adelaide because of its affordability and support services.

Flinders University international office head Virginia Pattingale said it expected international enrolments at its Adelaide campus to grow from 104 in 2010 to 150 next year as word continued to spread about the university’s city presence.

The university opened the city campus this year, offering local and international students mostly postgraduate studies in areas including public policy and health service management.

Education Adelaide figures show there were 32,470 student enrolments until the end of September this year at SA university’s and TAFE campuses, which is set to pass 2009 numbers (see fact file).

In January, the Federal Government increased the amount prospective students are required to possess to be eligible for a visa from $12,000 to $18,000.

UniSA Pro Vice Chancellor and Vice President for International and Development Nigel Relph said overseas inquiries were on par with last year but changes to the financial requirements might have an impact.

Carnegie Mellon University executive director Professor Terry Buss also said the requirements were a problem.

“This amount is much too high and discriminates against people from developing countries,” Professor Buss said.

The Victoria Sq university has 100 students in its two degree programs but could not provide a breakdown of how many were from overseas.

[Will]

From the Advertiser:

New university plans $300 million Adelaide campus

Sarah Martin From: The Advertiser December 17, 2010 12:01AM


A US-based university is considering building a $300 million Asia-Pacific campus in Adelaide.

Laureate International, which boasts former US President Bill Clinton as its honorary chancellor, is talking with the South Australian Government, the Department of Trade and Economic Development has revealed.

An announcement is expected by the Premier Mike Rann early next year. The Government also expects Mr Clinton will come to Adelaide for the formal announcement.

The move comes after UK-based Cranfield University announced earlier this year it was closing its SA campus, casting doubts on the Premier's vision for Adelaide as the country's university city.

A spokesman from DTED said yesterday discussions with Laureate were underway.

"DTED has had positive discussions with Laureate International Universities about establishing a new Australian university," he said.

Start of sidebar. Skip to end of sidebar.
Related CoverageAny drop could hurt local economy The Australian, 2 days ago
The generation gap The Australian, 6 days ago
Uni fees could fund politicking Herald Sun, 7 days ago
Campus butts out smokers The Daily Telegraph, 24 Nov 2010
Heritage Matters: Union Hall victim of "gridlock" Adelaide Now, 9 Jul 2010
.End of sidebar. Return to start of sidebar.
But the Department remained silent on the details of the deal, saying only that it was playing the role of attracting new investment to the state.

"DTED's role includes the attraction of new investment to growth sectors of the SA economy, through identifying and targeting strategic global investment opportunities," he said.

A spokeswoman for Laureate International said she "would not confirm or deny" that the organisation had decided on Adelaide as the site for a new university.

"Laureate ... is exploring a number of options related to university operations in Australia, but it is premature to speculate at this time on specific plans," vice-president of corporate communications Debra Epstein said from Baltimore in the US.

According to its website, Laureate has more than 50 accredited campus-based and online universities worldwide, with more than 600,000 students.

Its universities offer more than 130 undergraduate, masters and doctoral degree programs in fields including architecture, art, business, culinary arts, design, education, engineering, health sciences, hospitality, information technology, law and medicine.

Mr Clinton says Laureate International "is first of all a true global network of universities".

The chief executive of University College London's Adelaide-based School of Energy and Resources, David Travers, said demand existed in the Adelaide education market for the right offering.

"I think there is always going to be opportunities for quality education at the right price, in the right discipline," he said.

Further Education Minister Jack Snelling referred inquiries about negotiations with Laureate to the Premier's office.

No one from the Premier's office, nor the Premier's University City Project team, was prepared to comment on negotiations with Laureate.

[metro]

The Government also expects Mr Clinton will come to Adelaide for the formal announcement.

I hope they dont lock down the city for it

hopefully it wont be as bad as GAYPEC in Sydney

[SRW]

The Government also expects Mr Clinton will come to Adelaide for the formal announcement.

I hope they dont lock down the city for it

hopefully it wont be as bad as GAYPEC in Sydney

Seriously?

[frank1]

adelaide now comments on this story really piss me off

[Will]

From the Advertiser:

A year of economic challenges

From: The Advertiser January 01, 2011 12:30AM


EACH New Year we look at the clean slate ahead and chalk out the risks and opportunities. So what lies ahead for South Australia in 2011?

On the economic front, work will begin on major government and private sector projects. Removal of rail lines at the new Royal Adelaide Hospital site is due to begin this month and once contracts and costs of at least $1.7 billion are finalised, the earthmovers arrive.

Construction is due to start on some $2.5 billion of transport projects in the pipeline including the South Rd Superway, Southern Expressway duplication and rail electrification. Land release to developers at Bowden of the first of the transport-oriented developments is scheduled for the second half of the year.

The biggest ticket on the private sector radar, expansion of Olympic Dam, will reach decision point about the end of the year. If all government approvals are finalised, that's the target set by BHP Billiton chief executive Marius Kloppers to ask his board to commit billions of dollars to what will be the world's biggest mine.

The biggest SA-headquartered company, Santos, is due this month to make a decision on the $16 billion Gladstone liquefied natural gas scheme. While that project is in Queensland, it will have a significant effect here - raising the status of Santos globally and making it a tougher target for a takeover.

Many of us find talk of these huge projects somewhat mind-numbing, especially when the spin doctors endlessly repeat the same strings of numbers.

Then there are those who wallow in their negativity, saying this is Adelaide, it's not going to happen. They've got examples of failures to trot out, such as the never-ending sagas of Victoria Square and Britannia Roundabout, the Clipsal 500 grandstand or, further back, the multi-function polis.

There are plenty of other examples where the doubters were wrong - the desalination plant (even though delayed it will produce first water this year), the tram extension, the Northern Expressway, the revitalisation of the office precincts around Hindmarsh and Victoria squares.

Big developments do change the fabric of our state and the way we live and work.

Imagine how devastated our economy would be if we still relied so heavily on motor manufacturing and wine. Both were hammered by the global financial crisis but our economy has defied the downturn because of the growing strengths of other sectors - especially mining, defence, international education and green-tech water and energy.

This is SA - and it can and does happen here. But it will only happen this year if our political leaders get their act together.

The Labor Government must not waste its energy becoming absorbed in leadership struggles. While titillating to political aficionados, a leadership squabble will doom the state to a vacuum of decision-making. Mike Rann and Kevin Foley must be given space and support to do their jobs or their party must swiftly move them out of the way.

On the Opposition side, Isobel Redmond must do more. The electorate warmed to her apparent straight talking but since the election she has dropped off the radar. The would-be third force, the Greens, must offer viable policy, not feel-good rhetoric.

This will be a pivotal year as all workers get entitlement to parental leave, baby boomers begin to retire in big numbers, the national economy gets hit with the mining boom shock and the world looks for clarity on climate change mitigation. With careful leadership, the swings will be to the positive.

We wish all our readers a happy and prosperous New Year.

[Norman]

Good article by The Advertiser, more of this please. Keep the government accountable, but have some positivity in the stories.