18 Nov 2014
Iron ore, coal prices threaten Australian budget revenues – NAB
FXStreet (Barcelona) - The Research Team at National Australia bank note Iron ore and coal prices threatening to take around 1% out of the nominal GDP of Australia by 2015-16.
Key Quotes
“Iron ore exports in 2013-14 currently make up 22.6% of exports of goods and services: a 10% decline in the average price of iron ore for the current financial year would therefore pull down the terms of trade by 2¼% that translates to a 0.6% decline in nominal GDP. That would be a $A3.1bn take by 2015-16.”
“Current Qld met coal spot prices are running at $US113/t while spot iron ore is $US75.5/t, tracking respectively at 16% and 21%. Those levels of met coal and iron ore prices, were they to be sustained, could take another 1% of nominal GDP by 2015-16.”
Key Quotes
“Iron ore exports in 2013-14 currently make up 22.6% of exports of goods and services: a 10% decline in the average price of iron ore for the current financial year would therefore pull down the terms of trade by 2¼% that translates to a 0.6% decline in nominal GDP. That would be a $A3.1bn take by 2015-16.”
“Current Qld met coal spot prices are running at $US113/t while spot iron ore is $US75.5/t, tracking respectively at 16% and 21%. Those levels of met coal and iron ore prices, were they to be sustained, could take another 1% of nominal GDP by 2015-16.”