Key global insights

Industrial action at DP World’s Australian ports (including Brisbane) is set to end following an in-principle agreement to deliver Maritime Union of Australia (MUA) workers a 23% pay-rise over 4 years. It comes as DP World (which moves 40% of Australian containers) started charging up to 52% more to move a container. Additional costs could reduce the ability of Queensland exporters to stay competitive globally, particularly on lower-value export commodities including grains and other consumables.

Lower than expected inflation data showed the Consumer Price Index rose 4.1% in the 12 months to the December 2023 quarter, down from 5.4% during the September quarter. Coupled with the cooling retail spending in December, markets are now expecting the RBA to lower the cash rate to 3.7% by December 2024, reducing borrowing costs for households and businesses. The RBA decided to leave the cash rate target unchanged at 4.35% at their most recent meeting on 5-6 February.

Amidst energy transition uncertainty, Germany is turning to hydrogen (an import strategy will be released this year) and eyeing ship-based hydrogen imports from Australia to provide a more resilient and diversified hydrogen supply. The German and Australian governments are investing in the development of the Townsville Region Hydrogen Hub, in alignment with Queensland's strategy to diversify hydrogen projects beyond Gladstone.

Brisbane will be connected with the world's fifth busiest airport for the first time ever when American Airlines commences seasonal daily services from Dallas Fort Worth on 27 October using Boeing 787-9 aircraft. The new service, secured through the Queensland's Government's $200 million Attracting Aviation Investment Fund, is the third direct link between Brisbane and the United States, Queensland's 5th largest trading partner and world's largest economy.

The evolving dynamics in El Salvador, marked by the potential reconsideration of a mining ban, may present broader opportunities for Queensland's mining technologies. The political landscape, highlighted by President Bukele's electoral success, could play a role in shaping the country's policies on mining. Bukele's leadership and potential policy shifts may open avenues for Queensland's advanced mining technologies to contribute to and benefit from El Salvador's evolving mining sector.

Taiwan’s pro-independence Democratic Progressive Party (DPP) continues to strengthen chip production and research ties with the West in a bid to reduce geopolitical risks for Taiwan's major chipmaker, Taiwan Semiconductor Manufacturing Company (TSMC). With Taiwan responsible for 60% of global semiconductor output, the DPP's strategy aims to fortify the island's semiconductor industry and reduce dependence on China. The plan also involves establishing chip foundries in other key countries, enabling potential opportunities for Queensland to further develop capabilities in this sector and advance The Queensland Quantum and Advanced Technologies Strategy.

Featured insights

Indonesian elections promise policy continuity

  • Nearly 205m eligible voters will vote on 14 February to elect the President, Vice President and members of national, provincial, and municipal parliaments. 
  • The constitution bars President Widodo from running for a third term, with polls favouring current Defence Minister, Prabowo Subianto, who is running with Widodo’s son, Gibran Rakabuming Raka (known as “Gibran”).
  • If none of the three candidate pairs receives 50% of the vote, there will be a run-off presidential election on 26 June
  • Irrespective of the outcome, Widodo’s popularity means a likely continuation of current policy focusing on expanding the manufacturing base incentivising commodities downstreaming as well as green energy development; and improving human resources through education and training. 

    Trade and Investment Queensland’s Indonesian team led by Commissioner Boyd Whalan can help you explore the right opportunities that offer the best investment or export returns.


The Economist: Vietnam well placed to prosper

The Economist says that few countries are as well placed as Vietnam to ‘get rich’, citing pragmatic and pro-business policies and effective strategic positioning between China and the United States.  

  • Vietnam continues to offer strong growth opportunities for Queensland companies, particularly in Food and Beverage and Consumer. 
  • Despite a slowdown in 2023 (driven by a decline in manufacturing exports and a sluggish real estate market) Vietnam still registered 5.1% GDP growth.
  • Registered FDI surged 32% in 2023 – with a recovering manufacturing sector and returning tourist numbers, Vietnam’s economy and domestic consumer market should continue to be a bright spot of growth globally for Queensland exporters. 

    Trade and Investment Queensland's ASEAN team lead by commissioner Shannon Leahy can help you explore the right opportunities that offer the best investment or export returns.

In case you missed it...

  • The International Monetary Fund’s (IMF) January forecast for the global economy to grow by 3.1% in 2024 (up 0.2% from the October forecast).
  • The most recent ABS trade data release highlighting Queensland’s goods exports of $117bn in the year ending December 2023 – more than New South Wales and Victoria combined. 
  • China Eastern’s Shanghai-Cairns season services – the first flights from China to Cairns in nearly four years.
  • Austrade’s Critical Minerals Prospectus, outlining details of 52 critical minerals projects across Australia, including many in Queensland.
  • AusTrade’s weekly economic update – subscribe here.