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Key global insights
Donald Trump’s run for the Republican Presidential Nomination is looking promising with victory in the first two Republican primaries. Businesses fear that if Mr Trump is elected President, he could shake up the economic framework, rollback some of Biden’s key economic policies such as the Inflation Reduction Act (IRA) and implement tariffs on foreign goods.
UK inflation data for December alongside retail sales numbers has sent mixed signals. Falling transport (oil) prices helped offset increases in clothing, communication and recreation. The headline numbers remain elevated however, retail sales data suggests that the economy may be cooling. A softer UK economy may hinder Queensland capitalising on the newly minted free trade agreement in the medium-term.
Analysis by the International Monetary Fund (IMF) forecasts that Artificial Intelligence (AI) will affect 40 percent of global jobs – both through replacing them, and through complementing them and driving productivity and other benefits. Advanced economies face both the biggest risks, and the greatest opportunities, relative to developing and emerging markets. The Queensland Quantum and Advanced Technologies Strategy aims to harness Queensland’s expertise in quantum technologies.
A meeting between DP World Australia, the Maritime Union of Australia (MUA) and Federal transport minister Tony Burke has failed to resolve an ongoing industrial dispute, with the Government stating it will not intervene. Port operations in DP World’s Brisbane will see two-hour work stoppages every day from 22 January. Businesses across Australia are reporting significant delays, with as many as 48,000 containers currently stranded with retailers.
Extreme weather events, such as droughts, wildfires, floods, severe storms, and cyclone, are impacting both Queensland and global agricultural lands, crops, and animals. Controlled-Environment Agriculture (CEA) offer a solution to protect agricultural resources as well as provide additional benefits such as water efficiency and a reduction in pest, weeds, and diseases. CEAs are currently being researched by multiple universities throughout Queensland to help protect the Food and Ag industry.
Euromonitor International reports consumers are suffering greenwash fatigue as rising living costs pressure personal balance sheets. Whilst environmental and social sustainability still bear weight on purchase decisions, consumers appear to be less willing to pay a premium unless it has significant alignment to their personal values. This decline in consumer appetite for ESG could impact Australia’s ability to transition to a clean energy economy.
A recent report by recent report found that wind turbines are friendlier to birds than oil and gas drilling. The report suggests that wind turbines have little impact on bird populations, while new gas wells account for an average 15% drop in bird numbers. Although this comes as good news to the renewable energy sector, the recent costs from unexpected supply chain disruptions and labour shortages in Australia might mean that many of the proposed projects could be hindered.
Featured insights
Taiwan's New President
- The Democratic Progressive Party’s (DPP) former Vice President, William Lai has been elected Taiwan's new President.
- Lai’s election marks an unprecedented third term for the DPP and a continuation of the DPP’s tougher stance towards China.
- Two days after the election, Nauru announced it is severing diplomatic ties with Taiwan and establishing relations with the People' Republic of China (PRC).
- 10 countries switched allegiance from Taiwan to the PRC during Tsai’s tenure as leader, reflecting ongoing tensions across the strait.
Red Sea Crisis Update
- The cost of shipping a container from Asia to Europe surged to roughly $7,000 from $3,000 in December.
- Shipping firms and experts are expecting the crisis will continue for some months.
- Companies are deciding to change routes and go around Africa to bypass the Red Sea altogether.
- Rerouting ships is more expensive, costing round US$1 million, and emits more carbon into the atmosphere.
- The crisis has exposed the vulnerability of China's export-reliant economy to supply chain disruptions and external demand. shocks.
In case you missed it...
- The latest United States Presidential election polls.
- The Economist's conversation with OpenAI’s Sam Altman and Microsoft’s Satya Nadella (free subscription via GRAIL).
- Austrade’s weekly economic update – subscribe here.
- Visit the Knowledge Base for the latest insights.