Invest
Australian economy must adapt to megatrends: CSIRO
To remain competitive in a post-COVID-19 world, Australia will need to make a leap in five key categories, according to a report commissioned by the CSIRO.
Australian economy must adapt to megatrends: CSIRO
To remain competitive in a post-COVID-19 world, Australia will need to make a leap in five key categories, according to a report commissioned by the CSIRO.
In its Global Trade and Investment Megatrends paper co-authored by CSIRO’s Data61 and Austrade, the researchers found five megatrends that are going to reshape global trade and investment over the coming years.
According to Austrade acting deputy CEO, global client services, Sally-Ann Watts, the world has changed during the COVID-19 pandemic, with the Australian economy needing to adjust to succeed in the world.
“A global pandemic has fundamentally changed our world, hastening the global shift to digital services delivery, disrupting supply chains and posing serious challenges for Australia’s tourism and education sectors,” Ms Watts said.
CSIRO estimates that a decade’s worth of digital transformation occurred within the space of a few months and that the digital technology sector is expanding worldwide.
This presents an opportunity to further develop Australia’s data-science capability applied to trade strategies and investment attraction.
Director of CSIRO’s Data61, Jon Whittle, said the momentum of rapid digital transformation through the pandemic must be maintained.
“Data science and technology will be crucial to drive our economic recovery and build our future resilience,” Mr Whittle said.
“Digital technologies, such as artificial intelligence, robotics and data science can help us create new sources of wealth generation for the nation, and shift the dial for Australia on an international level.”
According to the report, the pandemic resulted in global trade and investment contracting sharply, with foreign direct investment forecast to shrink by 40 per cent, against a backdrop of -4.4 per cent economic growth for the current year.
There are signs of recovery; however, the report identifies that the new trade and investment landscape that emerges will have long-term structural shifts.
These shifts provide Australia with the opportunity to grow digitally enabled exports and to use digital technologies to grow all other export categories, according to the report.
“Overall, this megatrend paints a picture of rapid, widespread and deep digital transformation fuelled by the necessity of remote working, learning, shopping, healthcare, communication, entertainment and other activities,” the report said.
“There will also be opportunities for Australian companies to acquire domestic and globally produced digital technologies to improve the efficiency of their operations.”
The report also notes that while Australia, like other nations, was dealing with significant disruption to key industries such as tourism and education, it was also likely to benefit from the “safe-haven effect”.
“While the global trade and investment marketplace will become more competitive, Australia has significant sources of comparative advantage. There’s likely to be a flight from risky to safe assets and supply chains [and] … we have maintained reliable supply chains and a stable economy throughout the crisis.”
RELATED ARTICLES
About the author
About the author
Economy
Australian and Korean leaders meet to unlock billions in new trade opportunities
In a significant effort to bolster economic ties and explore new avenues for investment, Australian and Korean leaders, alongside business executives and government officials, are gathering in Seoul ...Read more
Economy
Australia’s growth beat is real — but it’s the wrong kind for capacity
Australia’s economy outpaced forecasts in the June quarter as households opened wallets and government spending did the heavy lifting, even as public investment sagged. The signal for boardrooms: ...Read more
Economy
Australia’s growth is back—but it’s the wrong kind of strong
GDP surprised on the upside in the June quarter, powered by households and government outlays even as public investment slumped. The Reserve Bank stayed hawkish, signalling that sticky services ...Read more
Economy
Australia's Economic Resilience: Strong GDP growth challenges RBA's policy stance
In a surprising turn of events, Australia's economy has shown greater resilience than anticipated, with the latest Q2 GDP report revealing a stronger performance largely driven by vigorous household ...Read more
Economy
Economist calls for July RBA rate cut following inflation data
An economist from State Street Global Advisors has called for the Reserve Bank of Australia to cut interest rates in July following today's Consumer Price Index data for June. Read more
Economy
GDP data prompts economist to predict faster RBA rate cuts
Australia's latest GDP growth data has come in significantly below expectations, prompting an economist to suggest the Reserve Bank may need to ease monetary policy more aggressively. Read more
Economy
Global markets face turbulent start amid tariff concerns, but outlook remains cautious
Global equity and bond markets have experienced a turbulent start to 2025, primarily due to concerns that a potential tariff-driven trade war could heighten inflation and recession risks. Read more
Economy
RBA may cut rates faster if GDP data disappoints, economists say
The Reserve Bank of Australia may cut interest rates more quickly if next week's GDP data disappoints, economists said following today's consumer price index data for May. Read more
Economy
Australian and Korean leaders meet to unlock billions in new trade opportunities
In a significant effort to bolster economic ties and explore new avenues for investment, Australian and Korean leaders, alongside business executives and government officials, are gathering in Seoul ...Read more
Economy
Australia’s growth beat is real — but it’s the wrong kind for capacity
Australia’s economy outpaced forecasts in the June quarter as households opened wallets and government spending did the heavy lifting, even as public investment sagged. The signal for boardrooms: ...Read more
Economy
Australia’s growth is back—but it’s the wrong kind of strong
GDP surprised on the upside in the June quarter, powered by households and government outlays even as public investment slumped. The Reserve Bank stayed hawkish, signalling that sticky services ...Read more
Economy
Australia's Economic Resilience: Strong GDP growth challenges RBA's policy stance
In a surprising turn of events, Australia's economy has shown greater resilience than anticipated, with the latest Q2 GDP report revealing a stronger performance largely driven by vigorous household ...Read more
Economy
Economist calls for July RBA rate cut following inflation data
An economist from State Street Global Advisors has called for the Reserve Bank of Australia to cut interest rates in July following today's Consumer Price Index data for June. Read more
Economy
GDP data prompts economist to predict faster RBA rate cuts
Australia's latest GDP growth data has come in significantly below expectations, prompting an economist to suggest the Reserve Bank may need to ease monetary policy more aggressively. Read more
Economy
Global markets face turbulent start amid tariff concerns, but outlook remains cautious
Global equity and bond markets have experienced a turbulent start to 2025, primarily due to concerns that a potential tariff-driven trade war could heighten inflation and recession risks. Read more
Economy
RBA may cut rates faster if GDP data disappoints, economists say
The Reserve Bank of Australia may cut interest rates more quickly if next week's GDP data disappoints, economists said following today's consumer price index data for May. Read more
