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Australia Finds Something Else to Export to China

Wall Street Journal Original article ›

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Tourists from China went up by 20% in 2015, going over 1 million. Foreign enrollment at Australian educational institutions was up significantly in 2015, going up to 645,000, up 25% over 2012 with the weaker Australian dollar. Australia's services sector including inbound education and tourism exceeded in value the minerals and metal ores exports in the last two months of 2015. This enabled the Australian economy to grow by 3% in the 4th quarter of 2015 over the prior year.

Australia's services exports including inbound education and tourism exceed metals, and minerals exports in 4th quarter 2015

03/03/2016

A 25% drop in the value of the Australian dollar since 2012 helps boost inbound education services and tourism, service exports that grow rapidly by the end of 2015. This helps Australia withstand the sharp drop in prices of metals and other commodities exports. GDP was up 3% in the 4th quarter of 2015 over the prior year.

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Australia Finds Something Else to Export to China

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Australia Finds Something Else to Export to China

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Australia Finds Something Else to Export to China

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Australia Finds Something Else to Export to China

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Brazil, Russia, Australia, Canada, are caught up in the commodities bust with dependence on commodities exports. Brazil faces a lost decade because in adddition to the sharp drop in commodities prices, it also has to tackle large debt and capital outflows, a credit card binge of households cutting into consumer spending, and problems with manufacturing from the period of overvalued currency. A serious long term problem as bottlenecks to growth come from a weak educational system and infrastructure that were not tackled in the boom years. The social safety net and the currency are supported by the foreign currency reserves fund of $397 billion, a lesson learned from the 1997 financial crisis.

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