Minerals and Energy: Overview of the Outlook for 2002-03

Overall, minerals and energy export prices are forecast to rise in 2002-03, as higher world prices for most commodities offset lower steaming coal and iron ore prices and the effects of a rise in the A$. After a slow start to the year, world consumption of minerals and energy commodities is expected to grow in the second half of 2002 and through 2003, as demand increases in response to stronger global economic and industrial production growth. Following a fall in earnings in 2001-02, the value of Australia's minerals and energy exports are forecast to increase by 5 per cent in 2002-03.