Asialink launches latest Asia trade index
Reviewing the last 10 years of engagement between Australia and Asia has made significant influence on each other, especially in trade, education and tourism. PwC Melbourne Institute Asialink Index introduces one ofAustralia’s comprehensive broad-based measures of our engagement in Asia, particularly in the area of trade, investment, research, business development, education, tourism and migration.
The index presents the following interesting observations.Australia’s trade engagement with Asia made a strong contribution to overall engagement in the last decade. In particular, trade in goods and services with China grew by 18.3 percent, reflecting export growth of 19.2 percent, which exceeded imports growth of 16.9 percent.
Asia’s net investment in Australia declined sharply in 2010, while growth in Australia’s net investment in Asia picked up to 6.4 per cent. There was a sharp decline in the net investment inflow from and outflow to the row.
While China now dominates Australia’s trade in Asia (and the world), Japan comes a close second and is also Australia’s preeminent investment partner. Japan accounts for more than half of the net inward investment to Australia from Asia and around 15 per cent of total inward investment.
The growth in international students coming from Asia and elsewhere to study in Australia slowed further in 2010. However, the number of Australians travelling overseas to study, especially to Asia, jumped strongly such that overall engagement rose. There was a 29.1 per cent increase in Australian students travelling to Asia in 2010, and a 12.8 per cent increase in students travelling to the world; the strength of the Australian dollar would have made studying abroad more affordable for Australian students.
While engagement with China, Japan, Indonesia and South Korea grew strongly in 2010, engagement with India suffered, reflecting the decline in Indian education and migration engagement. ■
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