Gas among Australia’s ‘super-growth’ sectors

gasNATURAL gas is one of five ‘super-growth’ sectors that could add an extra $250 billion to Australia’s economy during the next two decades, according to a new report from
Deloitte Access Economics.
Agribusiness, tourism, international education, and wealth management are the other four industries Deloitte believes hold the key to the nation’s future prosperity. Deloitte co-author Chris Richardson said exceptional growth in the five sectors could add $25 billion to Australia’s GDP by 2033, or a boost of about 1 per cent to an economy currently turning over $2.6 trillion.
Each Australian state and territory was individually analysed in the report Positioning for Prosperity? Catching the next wave, which found the Northern Territory to be particularly well positioned for economic growth as it capitalised on the coming wave of super-growth areas. Although slow to join the resources investment boom, the Territory was now “the life of the party,” with a focus on gas development, Deloitte stated.
The report named WA as the biggest single beneficiary of the initial phase of Asia’s development, cashing in on iron ore demand.
The rapid industrialisation of Asia during the past decade had taken a considerable toll on its cities’ air quality, propelling WA gas to the top of the global most-wanted list.
“Our gas is a clean and green alternative to coal that points to major development potential for this state in coming decades,” Deloitte managing partner for WA Mike McNulty said.
Looking east, Deloitte said NSW had been caught on the wrong side of the two-speed economy during the last decade, but was superbly placed to capitalise on the five identified super-growth sectors. It was a similar story for South Australia, which had its manufacturing and agribusiness industries negatively affected by high interest and exchange rates. An expansion of the state’s world-class Olympic Dam asset would allow it to cash in on resource-rich potential, the report stated.
Deloitte managing partner for NSW John Meacock said the next two decades could be a good news story for Australia, but a great news story for NSW: the nation’s most diverse economy.
“The last boom didn’t play to NSW’s strengths – but the next one looks like being a perfect fit,” Mr Meacock said.
The Deloitte report stated that although Queensland was able to sell into the demands generated by Asia’s prosperity during the past decade, benefits were sector-specific to the state’s coal industry. It stated that the opportunities on offer for the next 20 years would play to Queensland’s strength across a range of sectors, particularly gas.
The benefits of the mining boom didn’t ripple as strongly into Victoria: the high Australian dollar and interest rates proved to be “a deadly duo” for the state’s manufacturers, and weighed on its ability to sell education services – its largest export earner – to foreign students.
Yet, as the drivers of growth become more suited to Victoria’s sectoral strengths, Deloitte said the state was well placed to navigate its economic future.
With a smaller resources sector than its mainland counterparts, Tasmania’s economy has struggled during the last 10 years.
However, with a levelling Australian dollar and interest rates at historic lows, Tasmania was much better represented in all of the super sectors, with the exception of gas, the report claimed.
Deloitte managing partner for Tasmania Carl Harris said that a whole range of new opportunities were already starting to emerge for the state.
“After some tough years, it is positive and exciting that Tasmania is well placed to take advantage of the next waves of prosperity,” Mr Harris said.