Down Under to Down Wonder – an Open Australia weathers the Global storm

Over the past few years the global economy has been a fascinating place….

Not so long ago things were looking pretty grim….

Trading partner growth had been hammered right across the board

The world witnessed one of the most drastic collapses in trade in economic history

From an Australian point of view we’ve gone from down under to down wonder…….

The great escape - Australia’s economic performance was a stand out

Especially in the labour market

Australia has performed well by OECD standards

The old labour market story in the north atlantic economies is not reflected in the evidence

The great trade reforms of the past 25 years gave us a good base to withstand the GFC

At times like these, there’s a lot of anxiety about trade issues and globalisation…..

Trade has been associated with higher living standards

Australia’s attitude towards Asia: ‘Once were worriers’ because of the ‘The Tyranny of Distance’

We are now in the right place at the right time: ‘The Tyranny of distance’ has been replaced by ‘The Power of Proximity’

Japan’s economic development has partially driven Australia’s export growth in the past

Now it will be China, India and ASEAN who will drive much of our export growth in the 21 st century

China’s demand has helped to promote Australia’s prosperity……

Shanghai of the tiger: China is leading the charge in North Asia

With a little bit of help from my assigned translator

Sent airborne by Australia’s first female Prime Minister….

Doing it tough…with Kate Fischer and Pru Goward

To stimulate or not to stimulate: some fiscal packages have been effective - ‘bamboo shoots’ as much as ‘green shoots’

Looking west, there’s room to grow income-wise

Exporter confidence in China remained high during the GFC

Even in terms of SMEs China is a chart buster

Where the bolly hell are you?

India has shot up like a 2020 game Australian Exports to India Share of total, current prices Source: ABS Share of merchandise exports % Share of services exports 04/0508/0900/0196/9792/93

Gilly is going into bat for the ‘Gong

Australia’s financial institutions have remained robust

Given the GFC and the ‘recession porn’ faced our exporters have been a global surprise package

A quiet revolution - Australia has built a strong ‘heartland’ of true blue exporters Non-Exporters ‘Domestic Businesses’ Exporters/ Non-Exporters ‘Opportunistic/ Irregular’ Exporters ‘Heartland’

33 Short-term prospects: (3 months)  Negative export growth but increasing Medium-term prospects: (12 months)  Positive export growth and accelerating Australian exporters kept their nerve NB: Don’t know responses have been excluded from the analysis Change in export orders Net Change 15% (actual) - 10% (actual) + 10% (expected) + 40% (expected)

34 Australian exporters were positive about employment More than half of the exporters (59%) are optimistic regarding their profitability over the next 12 months expecting it to increase. Almost half of the exporters (47%) are planning to keep the staff numbers the same while 45% of exporters are likely to increase their staff head count. Wage increases are likely in over two thirds of the exporters (69%). More than half of the exporters (59%) are optimistic regarding their profitability over the next 12 months expecting it to increase. Almost half of the exporters (47%) are planning to keep the staff numbers the same while 45% of exporters are likely to increase their staff head count. Wage increases are likely in over two thirds of the exporters (69%).

Australian exporters and workers were flexible in terms of hours Average Hours Worked Mid-month of quarter Source: ABS 2009 Hrs Hrs

Now our trading partner growth has bounced back

East Asia has been an important part of that story

The emerging economies are really geeing up the G7

There’s plenty of action for Australian exporters in the emerging world (source: UBS)

Easy rider: Steppe-ing out in Mongolia

Australia’s strength in Asia is a good story for northern hemisphere investors

A good airport economist knows that Australian exports are well diversified

Taking a walk on the supply side

There are now new challenges that require skillful economic management

Demography is destiny?

Japan: Land of the greying sun?

China: getting old before they get rich?

India: Poppadom preach?

Many experienced exporters have survived crises before SOURCE: Sensis ® Business Index

Despite some Gen X and Gen Y growth, global SMEs are mainly run by baby- boomers

The GFC shook most of the world….

In Australia we’ve been successful as we’ve married an open economy to successful social reform

One big happy free trade agreement……

Down Under to Down Wonder – an Open Australia weathers the Global storm