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
RBA May Consider Early Rate Hike Amidst Economic Growth and Inflation Concerns
Australia's economic landscape is witnessing a dynamic shift as the Reserve Bank of Australia (RBA) grapples with the implications of recent growth figures and inflationary pressures. The latest GDP ...Read more
Economy
Inflation concerns grow as consumer price index rises, prompting potential interest rate hikes
The latest Consumer Price Index (CPI) data has sparked fresh concerns about inflation in Australia, with experts suggesting that further interest rate hikes may be on the horizon. The CPI, a key ...Read more
Economy
State Street economist comments on latest labour force data amid market anticipation
The latest labour force data, released today, has prompted a measured response from financial experts, with insights provided by Krishna Bhimavarapu, APAC Economist at State Street Investment ...Read more
Economy
RBA's interest rate hike impacts Australian employment landscape
The Reserve Bank of Australia (RBA) has decided to increase interest rates by 25 basis points, raising the cash rate to 3.85%. This move, aimed at controlling inflation, has elicited responses from ...Read more
Economy
RBA’s latest rate hike sparks debate over economic impact
In a surprising move, the Reserve Bank of Australia (RBA) has increased the cash rate, signalling a significant shift in its monetary policy approach. This decision comes amid a backdrop of unexpected ...Read more
Economy
When inflation reopens the rate door: A broker-sector case study in defending margins, clients and share
Australia’s latest trimmed-mean inflation reading at 3.3% has revived the prospect of another Reserve Bank move and put lenders, brokers and borrowers back on a tightening footing. This case study ...Read more
Economy
Inflation rise dampens hopes for interest rate cuts as employment dynamics shift
In a development that has dashed hopes for an interest rate cut, Australia's Consumer Price Index (CPI) has surged back to 3.8%, erasing the progress made since October. This unexpected rise in ...Read more
Economy
Inflation surge poses challenges for small businesses and consumers
The latest inflation figures have sparked concern among Australian businesses and consumers alike, with the rising costs expected to influence the Reserve Bank of Australia's (RBA) upcoming interest ...Read more
Economy
RBA May Consider Early Rate Hike Amidst Economic Growth and Inflation Concerns
Australia's economic landscape is witnessing a dynamic shift as the Reserve Bank of Australia (RBA) grapples with the implications of recent growth figures and inflationary pressures. The latest GDP ...Read more
Economy
Inflation concerns grow as consumer price index rises, prompting potential interest rate hikes
The latest Consumer Price Index (CPI) data has sparked fresh concerns about inflation in Australia, with experts suggesting that further interest rate hikes may be on the horizon. The CPI, a key ...Read more
Economy
State Street economist comments on latest labour force data amid market anticipation
The latest labour force data, released today, has prompted a measured response from financial experts, with insights provided by Krishna Bhimavarapu, APAC Economist at State Street Investment ...Read more
Economy
RBA's interest rate hike impacts Australian employment landscape
The Reserve Bank of Australia (RBA) has decided to increase interest rates by 25 basis points, raising the cash rate to 3.85%. This move, aimed at controlling inflation, has elicited responses from ...Read more
Economy
RBA’s latest rate hike sparks debate over economic impact
In a surprising move, the Reserve Bank of Australia (RBA) has increased the cash rate, signalling a significant shift in its monetary policy approach. This decision comes amid a backdrop of unexpected ...Read more
Economy
When inflation reopens the rate door: A broker-sector case study in defending margins, clients and share
Australia’s latest trimmed-mean inflation reading at 3.3% has revived the prospect of another Reserve Bank move and put lenders, brokers and borrowers back on a tightening footing. This case study ...Read more
Economy
Inflation rise dampens hopes for interest rate cuts as employment dynamics shift
In a development that has dashed hopes for an interest rate cut, Australia's Consumer Price Index (CPI) has surged back to 3.8%, erasing the progress made since October. This unexpected rise in ...Read more
Economy
Inflation surge poses challenges for small businesses and consumers
The latest inflation figures have sparked concern among Australian businesses and consumers alike, with the rising costs expected to influence the Reserve Bank of Australia's (RBA) upcoming interest ...Read more
