Strategic Insights Update

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.