Fed: Commodities expected to help Aust economy in 1999/2000

AAP General News (Australia)
12-14-1999
Fed: Commodities expected to help Aust economy in 1999/2000

The government's chief commodities forecaster says the Australian economy will be pushed
along by stronger earnings from commodities this year, and exports will skip five per
cent higher in 1999/2000.

The Australian Bureau of Agriculture and Resource Economics says Australian commodity
exports will rise 5.1 per cent to $67.8 billion.

Minerals and energy exports are forecast to rise to $42.4 billion from $39.2 billion,
more than offsetting the 0.6 per cent decline in farm products exports to $22.4 billion.

ABARE executive director BRIAN FISHER says there'll be better world prices for key
minerals and energy commodities as world economic growth strengthens.

But he says falls in the values of wheat, cotton, sugar and lamb will more than offset
increases in the value of beef, rice, wine, live cattle and wool exports.

They're expected to drag export earnings from farm commodities lower in 1999/2000.

ABARE also predicts that the Australian dollar will average 66 US cents in 1999/2000.

AAP RTV eg/mfh/kbw/jn

KEYWORD: ABARE (CANBERRA)

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