Gas, tourism, agribusiness the "super growth" industries
GAS, tourism and agribusiness are three of five key "super-growth industries" that could pump an extra $250 billion into Australia's economy over the next two decades, a Deloitte Access Economics report has found.
The report focused on "catching the next wave" of economic growth in a bid to attract major investment as the mining industry continues to slow.
It centres on growth of more than 10% a year in five key industries: gas, agribusiness, tourism, international education and wealth management.
Report co-author Chris Richardson said there was "vast potential" for growth in those industries, potentially adding an extra $425 billion a year, or 1% to Australia's gross domestic product.
"It's all about catching the next wave. Mining will continue as a major driver of our prosperity over the next two decades and beyond," he said.
But he said the nation needed to look beyond the mining wave to create a series of new "waves" of growth.
"And the first place to look is markets that can be expected to grow significantly faster than the global economy as a whole over the next 10 or 20 years, or by more than about 3.4% per year," Mr Richardson said.
"For example, global markets for gas, tourism and agribusiness are each expected to grow at rates at least 10% faster than global GDP as a whole."
Mr Richardson said a lower Australian dollar would also help, factoring in a value of US80c for the Aussie dollar for the longer term.
"This downswing has already begun, and it signals the starter's gun on new opportunities for 'dollar-dependent' sectors, including manufacturing, farming, tourism, and international education," he said. "It will also be a tailwind for interest rate-sensitive sectors, such as retail and housing construction."
The report also predicted further growth, but to a lesser extent, for banking and health, construction, business services, transport and logistics..
Big growth industries
- Agribusiness: Global population growth of 60 million a year will increase food demand, with Asia's growing middle classes set to boost their protein intake.
- Gas: Rapid growth in emerging economies has polluted the air in the major cities to our north. That will underwrite demand for gas, a cleaner and greener alternative.
- Tourism: This sector is set to double in size in the next 20 years, with Asia's expanding middle classes fuelling the growth.
- International education: Foreign students are already our fourth biggest export earner; with India and China likely to drive great growth in demand in the sector.
- Wealth management: Three billion people in Asia will join the middle class by 2030 and by 2050 the region will account for more than half the world's financial assets.