Q3 2015
www.bmiresearch.com
AUSTRALIA
INFORMATION TECHNOLOGY REPORT
INCLUDES 5-YEAR FORECASTS TO 2019
ISSN 2041-7160
Published by:BMI Research
Australia Information Technology Report
Q3 2015
INCLUDES 5-YEAR FORECASTS TO 2019
Part of BMI’s Industry Report & Forecasts Series
Published by: BMI Research
Copy deadline: June 2015
BMI Research
Senator House
85 Queen Victoria Street
London
EC4V 4AB
United Kingdom
Tel: +44 (0) 20 7248 0468
Fax: +44 (0) 20 7248 0467
Email:
Web:
© 2015 Business Monitor International Ltd
All rights reserved.
All information contained in this publication is
copyrighted in the name of Business Monitor
International Ltd, and as such no part of this
publication may be reproduced, repackaged,
redistributed, resold in whole or in any part, or used
in any form or by any means graphic, electronic or

mechanical, including photocopying, recording,
taping, or by information storage or retrieval, or by
any other means, without the express written consent
of the publisher.
DISCLAIMER
All information contained in this publication has been researched and compiled from sources believed to be accurate and reliable at the time of
publishing. However, in view of the natural scope for human and/or mechanical error, either at source or during production, Business Monitor
International Ltd accepts no liability whatsoever for any loss or damage resulting from errors, inaccuracies or omissions affecting any part of the
publication. All information is provided without warranty, and Business Monitor International Ltd makes no representation of warranty of any kind
as to the accuracy or completeness of any information hereto contained.

CONTENTS
BMI Industry View 7
SWOT 9
IT SWOT 9
Wireline SWOT 11
Political 13
Economic 14
Operational Risk 15
Industry Forecast 17
Table: IT Industry - Historical Data And Forecasts (Australia 2012-2019) 17
2015 Outlook 17
Macroeconomic Forecasts 23
Economic Analysis 23
Table: Economic Activity (Australia 2010-2019) 29
Industry Risk Reward Index 30
Table: Asia Pacific IT Risk/Reward Index - Q315 32
Market Overview 33
Hardware 33
Software 39

Services 44
Industry Trends And Developments 52
Regulatory Development 58
Table: Government Authority 58
Government Initiatives 58
Regulatory News 60
Competitive Landscape 62
International Companies 62
Table: Dell 62
Table: Datacom 63
Table: SAP 64
Table: Panasonic 65
Local Company 65
Table: The Good Guys 65
Company Profile 66
Hewlett-Packard 66
Table: Hewlett-Packard Financial Performance By Division 71
Australia Information Technology Report Q3 2015
© Business Monitor International Ltd Page 4
SAP 74
Regional Overview 80
Demographic Forecast 83
Table: Population Headline Indicators (Australia 1990-2025) 84
Table: Key Population Ratios (Australia 1990-2025) 84
Table: Urban/Rural Population & Life Expectancy (Australia 1990-2025) 85
Table: Population By Age Group (Australia 1990-2025) 85
Table: Population By Age Group % (Australia 1990-2025) 86
Methodology 88
Industry Forecast Methodology 88
Sources 89

Risk/Reward Index Methodology 90
Table: It Risk/Reward Index Indicators 91
Table: Weighting Of Components 92
Australia Information Technology Report Q3 2015
© Business Monitor International Ltd Page 5

BMI Industry View
BMI View: Due to high labour costs, BMI believes Australian enterprises could be among the early
adopters for AI applications such as IBM's Ask Watson service, which has already been trialled by ANZ
Bank. Emerging technologies aside, the growth outlook is relatively weak in Australia. This is in part a
consequence of market maturity, meaning growth will underperform the APAC average, which is weighted
to emerging markets, but there is also macroeconomic downside as BMI expects economic growth to slow
over the medium term.
Headline Expenditure Projections:
■
Computer Hardware Sales: AUD8.185bn in 2014 to AUD8.499bn in 2015, up 3.8% in local currency
terms. Slowdown in tablet demand due to market saturation will be offset by a stabilisation in desktop
and notebook sales in 2015 due to design innovation in the hybrid notebook market.
■
Software Sales: AUD4.728bn in 2014 to AUD4.764bn in 2015, up 0.8% in local currency terms.
Security software will outperform, particularly for small and medium-sized enterprises (SMEs) and
consumers - but the effect of XP enterprise upgrades will be diminished.
■
IT Services Sales: AUD9.742bn in 2014 to AUD10.678bn in 2015, up 9.6% in local currency terms. IT
services will be fastest growth area of the IT market over the medium term, with cloud services the key
growth driver as local companies try to use efficiencies enabled by the national broadband network
(NBN).
Key Trends And Developments: After a sustained boom since 2012, the Australian tablet market appears
to have peaked, in line with BMI's expectations. High street consumer electronics retailer JB Hi-Fi reported
that sales in July 2014 fell by 5.5% year-on-year, mainly due to a significant slump in demand for new and

replacement tablet computers. We believe this data reflects the level of consumer satisfaction with existing
products and the slower rate of innovation by leading vendors such as Apple and Samsung that have
produced iterative improvements rather than significant changes in recent announcements. Although a small
uptick is expected in 2016 as mobile network operators seek to attract customers to their new 4G mobile
broadband networks by including tablets in new service bundles, sales are expected to fall in the following
years as the operational lives of high-spec devices - as well as their high cost - obviates the need to buy a
replacement in the short to medium term.
Australia Information Technology Report Q3 2015
© Business Monitor International Ltd Page 7
In contrast to the slowdown in tablet demand, the Australian cloud computing growth story has plenty of
momentum remaining. The latest research by the Australian Communications and Media Authority
(ACMA) showed the adoption of cloud computing services continued in 2013. In March 2014, ACMA
claimed that 36% of SMEs actively using cloud services believed that such services provided easier or more
convenient access to data and key resources (36%), assisted in making key productivity tools accessible
from multiple locations (15%) and that disaster recovery would be facilitated through the use of cloud-based
platforms (11%).
Australia Information Technology Report Q3 2015
© Business Monitor International Ltd Page 8
SWOT
IT SWOT
SWOT Analysis

Strengths
■
High incomes and strong supporting infrastructure drive high levels of IT spending per
capita.
■
Strong government support for ICT programmes.
■
IT-literate population with high levels of PC ownership and a propensity for premium

devices.
■
Strong financial sector, a large source of demand for enterprise software and
services.
■
Tablet boom has offset the decline in desktop and notebook sales.
Weaknesses
■
Australia has a relatively mature domestic market, with correspondingly slow growth
rates.
■
Sensitive to volatility in the global economy.
Opportunities
■
High labour costs and proximity of low-cost competition make Australia a fertile
market for automation technologies such as IBM's Watson and other personal
assistant products.
■
Considerable demand for cloud computing services from both the public and
enterprise sector.
■
Government cloud computing strategy creates opportunities for vendors in the public
and small- and medium-sized enterprise (SME) sectors.
■
Potential for a rebound in notebook sales as hybrid designs evolve.
■
Other major IT projects in areas such as healthcare, education and smart cards.
Australia Information Technology Report Q3 2015
© Business Monitor International Ltd Page 9
SWOT Analysis - Continued

Threats
■
A cheaper Australian dollar would affect consumer and business demand in the
import-dependent IT market, with downside weighted towards the latter years of our
forecast.
■
Vendors face threat of parliamentary enquiry into product pricing and are coming
under pressure regarding tax arrangements.
■
Data from retailers indicate a sharp slowdown in the tablet market in 2014, in line with
our long-held view that saturation and slower rate of innovation would result in longer
replacement cycles.
Australia Information Technology Report Q3 2015
© Business Monitor International Ltd Page 10
Wireline SWOT
Australia Wireline SWOT

Strengths
■
Australia's overall wireline sector is host to a large number of service providers, many
of which offer a full range of voice, data and internet services.
■
Many service providers offer broadband internet connectivity by means of several
different technologies.
■
The penetration rate, measured as a proportion of buildings reached with broadband
network infrastructure, is extremely high.
■
The residential market supports strong demand for pay-TV services.
■

The business market supports strong demand for converged data services.
■
Australia's leading broadband operators continue to report strong internet and
multimedia service sales.
Weaknesses
■
Despite a significant number of service providers, the broadband market continues to
be dominated by Telstra.
■
Despite fixed-line market liberalisation and steady growth in the number of unbundled
local loops, Telstra remains the dominant player in the sector.
■
After a period of moderate growth, business demand for fixed telephony lines now
appears to be weakening.
■
Overall, demand for traditional fixed-line services is shrinking, resulting in a
diminishing market.
Opportunities
■
The national broadband network, announced in April 2013, aims to be completed
sooner and more cheaply, with the trade-off being slower connectivity.
■
Demand for wireless broadband services, including WiMAX, 3G datacard and USB
modem-supported services is growing.
Australia Information Technology Report Q3 2015
© Business Monitor International Ltd Page 11
Australia Wireline SWOT - Continued
■
Australia's leading broadband operators are investing in the development of higher-
speed broadband services. This has potential to drive demand for new data services.

■
The government revealed that it has set aside AUD60mn for regional, rural and
remote telecoms projects; satellite and wireless broadband networks are seen as a
source of potential investment in remote regions.
Threats
■
Fixed-line sector may decline at a more rapid rate than expected, with potentially
negative consequences for ADSL growth.
■
Proliferation of naked ADSL could hasten the decline of the fixed-line sector.
■
Growing popularity of wireless broadband services could negatively affect the market
for fixed broadband access based on DSL and cable.
■
The high rate of broadband penetration reduces the scope for further growth in the
broadband sector; growth will slow as the market nears saturation point.
■
Following the election of the new Liberal-National Coalition government in September
2013, the NBN is likely to offer slower connectivity than originally envisaged.
Australia Information Technology Report Q3 2015
© Business Monitor International Ltd Page 12
Political
SWOT Analysis

Strengths
■
Australia is a mature democracy with a broadly stable party system.
■
Economic stability over recent years supports the current political system and radical
groups are unlikely to gain substantial support.

Weaknesses
■
As one of the region's largest and most stable states, the country attracts many
refugees and economic migrants. The issue is a key source of domestic tension and
has been hotly debated in parliament in recent times as the capsizing of a boat led to
the death of a number of refugees. The issue continues to be debated in the federal
parliament with no sign that political parties will find a viable alternative that would
ensure the safe passage and fair processing of the refugees, while reducing the
possibility of people smuggling.
■
The fragility of the state governments' finances compared to the large infrastructure
projects that they need to undertake has led to questions with regards to the
compatibility of the federal-state system with the country's current development
needs.
Opportunities
■
Australia has historically enjoyed close military ties with the US. However, with the
rise of regional economic powers such as China, it will need to balance competing
military and economic ties.
Threats
■
Australia's early support for the US 'War on Terror', among other things, has made
Australians abroad a target for Islamic extremists.
■
Australia's close alliance with the US, particularly under John Howard, has left a
lingering feeling among some Asian governments that it is America's 'deputy sheriff'
in the region.
Australia Information Technology Report Q3 2015
© Business Monitor International Ltd Page 13
Economic

SWOT Analysis

Strengths
■
A free-market economy supported by a highly educated workforce.
■
Blessed with rich natural resources, Australia's economic activity has been
augmented by demand for commodity exports and the investments made in the
mining sector.
Weaknesses
■
The persistent current account deficit increases vulnerability to capital flows and, by
extension, currency volatility.
■
The export basket is highly concentrated in commodities, and consequently exposes
the economy and currency to fluctuations in world prices for metals, coal and
agricultural goods.
Opportunities
■
The rapid expansion of Asian economies in recent years offers new opportunities for
diversifying trading ties from core European markets.
■
A low level of government debt has provided a certain amount of flexibility in fiscal
policy to support domestic demand through the downturn.
Threats
■
The high level of private sector debt - especially mortgage loans - fuelled by overseas
funding poses a threat to sustained growth and financial stability.
■
A collapse in exports from a drop in resource demand from China and other resource-

hungry countries would severely impact headline GDP growth.
■
Australia is vulnerable to extreme weather that may lead to droughts and floods,
which have become increasingly severe in past years as a result of global climate
change.
Australia Information Technology Report Q3 2015
© Business Monitor International Ltd Page 14
Operational Risk
SWOT Analysis

Strengths
■
A highly educated workforce and comparatively modern transport infrastructure
underpin economic prospects.
■
A number of free trade agreements with countries such as New Zealand, Thailand and
the US serve as a boon for trading activities.
Weaknesses
■
Despite its openness, Australia requires the Foreign Investment Review Board to
approve any commercial real estate investment by a foreign company or individual
valued at USD5mn or more.
■
With a population of just over 23mn, the domestic consumer base is small by regional
standards.
Opportunities
■
Australia is currently in talks with the Gulf Cooperation Council, India, and Indonesia
regarding bilateral free trade agreements. It is also part of PACER and RCEP talks.
■

Upgrade and expansion of urban infrastructure will be needed to sustain population
growth in Australia's main cities, providing opportunities for public-private
partnerships in the future. The government is also targeting infrastructure
improvements to rural areas.
■
More healthcare infrastructure will be needed to support the ageing population, and
with the introduction of the federal government's National Disability Insurance
Scheme, the industry is likely to see increasing demand for services.
Threats
■
Corporate taxes for foreign investors in Australia remain higher than in other
countries, and it seems unlikely that the government will succeed to reduce the rates
in the near future.
■
Recent investment proposals by Chinese firms regarding the agricultural and resource
extraction sector have raised fears that strategic assets will be lost to foreign players.
This has led to more conditions attached to the sale agreements, which is likely to
reduce the attractiveness of these assets. It remains to be seen if the recent
Australia Information Technology Report Q3 2015
© Business Monitor International Ltd Page 15
SWOT Analysis - Continued
implementation of a database to increase transparency around foreign-owned
Australian assets will spur more regulation.
Australia Information Technology Report Q3 2015
© Business Monitor International Ltd Page 16
Industry Forecast
Table: IT Industry - Historical Data And Forecasts (Australia 2012-2019)
2012 2013 2014e 2015f 2016f 2017f 2018f 2019f
IT market value, AUDmn 20,585.3 21,414.9 22,654.8 23,941.6 25,169.8 26,413.2 27,667.8 28,929.4
Computer hardware sales,

AUDmn
7,756.5 7,904.2 8,185.2 8,499.3 8,718.8 9,006.9 9,241.0 9,459.9
Personal computer sales, AUDmn 6,231.6 6,397.7 6,612.8 6,853.8 7,017.8 7,236.1 7,410.4 7,571.7
Software sales, AUDmn 4,162.3 4,345.1 4,728.1 4,764.4 5,099.4 5,272.1 5,483.8 5,693.3
Services sales, AUDmn 8,666.4 9,165.6 9,741.6 10,677.9 11,351.6 12,134.2 12,943.0 13,776.2
IT market value, % of GDP 1.4 1.4 1.4 1.4 1.4 1.4 1.4 1.4
e/f = estimate/forecast. Source: BMI
We maintain our view for solid growth in Australia's IT market in local currency terms, as we forecast a
compound annual growth rate (CAGR) of 5.3% 2014-2019, with the market reaching AUD28.929bn by the
end of our five-year forecast period in 2019. Over this period, the market will remain stable at around 1.4%
of GDP. The Australian IT market has considerable medium-term potential, particularly in areas such as
tablets, cloud computing, real-time enterprise software and data centre growth.
However, it should be noted that as a result of BMI's in-house Country Risk forecast for significant
weakening of the Australian dollar against the US dollar over this period, the IT market is forecast to grow
at a CAGR of just 0.1% in US dollar terms 2014-2019.
2015 Outlook
BMI forecasts the IT market will expand by 5.7% in local currency terms in 2015, to reach a value of
AUD23.942bn.
Despite the economic environment becoming less supportive of IT market expansion, we continue to
forecast GDP and private final consumption will grow in real terms in 2015. We forecast real GDP growth
of 2.3% in 2015 (the same as for 2014), and an increase from 1.3% real growth in 2014 to 1.6% in 2015.
PC penetration is high in Australia, limiting growth potential, but nonetheless we expect sales growth to
continue as high income consumers purchase personal devices on a short replacement cycle. We expect
Australia Information Technology Report Q3 2015
© Business Monitor International Ltd Page 17
2015 to be a strong year for sales of traditional form factors such as desktops and notebooks after recent
declines. The withdrawal of Microsoft official support for the legacy operating system (OS) XP in April
2014 should continue to cause hardware upgrades, particularly in the enterprise and public sector markets.
However, it will be tablet sales that again outperform as the largest device category. Meanwhile, BMI
considers there to be potential for growth of hybrid notebook sales running Windows 8/8.1 as a result of

design innovation on the part of vendors, while at the low-end, Microsoft's decision to cut OS licensing fees
on low-cost notebooks should make them more cost-competitive versus tablets.
The Australian government is an important factor in the IT market through programmes such as the national
broadband network (NBN), which is extending connectivity across the country. National and state
governments will continue to roll out new initiatives, and the Victoria government has invested more than
USD150mn in IT in schools. New South Wales and Queensland were also rolling out IT for schools
projects. Meanwhile, an initiative by the not-for-profit organisation One Laptop Per Child saw 50,000
laptops distributed to the nation's schoolchildren by June 2014.
The enterprise IT outlook is the weakest out of retail, public sector and enterprise, with business confidence
susceptible to global headwinds and the domestic slowdown in economic activity. There are however areas
of rapid growth within the enterprise segment, which are mainly based on the increasing prevalence of
connectivity. Three key areas that stand to benefit are cloud computing, data analytics and machine-to-
machine communications, about which BMI holds a positive medium-term view.
In 2015, uptake of cloud services will continue to increase. Surveys indicate that cloud computing is a
priority for Australian chief information officers, while the release of the government's cloud computing
strategy in Q213 should also boost deployments. Cloud initiatives have already been implemented by many
of the country's leading banks, and across sectors cloud adoption is spreading from storage and email to
areas such as human resources management. The government has adopted a six-year cloud computing
strategy. Cloud computing spending could reach around AUD4.00bn by 2017.
Market Drivers: The medium-term outlook is for stable IT market growth, underpinned by economic
stability. BMI forecasts the Australian economy will remain on a lower growth trajectory over the medium
term, with real GDP growth forecast to average 2.6% 2015-2019 and real private consumption growth to
average 1.7% annually 2015-2019. However, we also highlight downside risk to this outlook, which could
result in market disruption. Depreciation in the Australian dollar over the duration of our five-year forecast
period could undermine domestic confidence levels, and reduce consumer purchasing power of imported
products, both of which would be detrimental to IT market spending.
Australia Information Technology Report Q3 2015
© Business Monitor International Ltd Page 18
The maturity of the Australian hardware market means growth rates will be significantly slower than the
Asia Pacific average 2014-2019. BMI estimates household PC penetration in Australia at just below 90% in

2014, meaning there is little scope for growth in first-time PC sales. However, there are large opportunities
in the personal/upgrade device market as we expect consumers will continue to be willing to spend on
innovative devices that offer new use cases. Tablets are the most prominent device meeting these
requirements, but we believe hybrids/convertibles and ultrabooks that use Haswell and, soon, Broadwell
chips could gain traction in Australia. There is also a significant medium term opportunity in the wearable
devices market, although it is too early to gauge potential market impact in 2015.
Increased reach of broadband infrastructure over the medium term will boost activities such as online
banking and shopping, while the increased upload speeds delivered by the NBN will be a crucial enabler for
widespread adoption of cloud computing services. The expansion of broadband infrastructure will also act
as a foundation for the ongoing modernisation of retail operations, including improved logistics and
distribution, as well as a shift to online sales.
One important feature of the Australian economy which could position it as a leader in emerging
technologies is the high labour costs in Australia that will generate demand for services that replace labour;
for example, IBM's Ask Watson was adopted by ANZ Bank in H113 to enhance customer services and cut
costs. Such technology is in the early stages of commercial deployments, but BMI believes that Australia
could be a fertile market for it over the medium term due to the scale of potential labour cost savings.
Australia Information Technology Report Q3 2015
© Business Monitor International Ltd Page 19
IT Market Growth
(2012-2019)
IT market value, mn (RHS) IT market value, AUDmn, % y-o-y (LHS)
2012 2013 2014e 2015f 2016f 2017f 2018f 2019f
3.5
4
4.5
5
5.5
6
0
10,000

20,000
30,000
40,000
e/f = estimate/forecast. Source: BMI
Segments: Enterprise software demand in key verticals will continue to be centred on enterprise resource
planning (ERP), customer relationship management (CRM) and business intelligence solutions - but we also
expect these applications to gain traction among small- and medium-sized enterprise (SME) market. A
catalyst for wider adoption of enterprise software suites among SMEs is likely to be the provision of basic
software delivered in the cloud. Further, BMI believes security software has potential for strong growth
over the medium term as awareness about threats grows, particularly among SMEs.
In the enterprise segment regulatory compliance will result in continued spending by banks, and intense
competition in the retail sector is spurring spending on CRM and back-office systems. Competition in the
telecoms field is a driver for that key IT spending segment, where deregulation has led to new entrants.
IT services are forecast to be the outperforming segment of the IT market in the medium term, as demand is
driven by cloud computing services, data analytics and machine-to-machine communications. Cloud
computing should see strong growth with the rollout of the NBN and the release of the government's cloud
computing strategy in 2013. Opportunities will exist in telecoms, healthcare and utilities verticals. Cloud
Australia Information Technology Report Q3 2015
© Business Monitor International Ltd Page 20
computing will be key as businesses look for opportunities to reduce cost and increase flexibility, and has
already gained traction in the market and spread beyond initial core application areas, with around one-third
of Australian organisations estimated to be using some cloud services.
Over the medium term the development of supporting infrastructure, new cloud computing offerings and
increased competition in this segment are expected to fuel further demand from end-users for this
technology. The federal government has set out a timetable for migrating government agencies' computing
systems to a public cloud environment. Australia's big four banks will remain in the vanguard of moves
towards cloud computing after revaluating their IT spend during the economic downturn.
Meanwhile, government initiatives such as e-government, healthcare and education will drive significant
opportunities for IT vendors over the medium term. The National E-Health Transition Authority aims to
create a paperless environment in Australia's health sector, including public hospitals. Although the

government is pursuing investments in IT in a number of areas, it is reviewing procurement procedures to
reduce cost, which could squeeze vendor margins. For instance, in early 2013 the Australian Government
Information Management Office (AGIMO) consolidated its contracts with Microsoft through a single
reseller to deliver cost savings of AUD100mn.
Australia Information Technology Report Q3 2015
© Business Monitor International Ltd Page 21
Australia GVA By Vertical (%)
2014e
e = estimate. Source: National statistics, World Bank, UN, BMI
Summary: The hardware market is forecast to grow from AUD8.499bn in 2015 to AUD9.460bn in 2019,
with PC sales (including accessories) forecast to rise from AUD6.854bn to AUD7.572bn, boosted by
computer procurement for education and new form factors. Software spending is forecast to rise from
AUD4.764bn to AUD5.693bn and IT services from AUD10.678bn to AUD13.776bn.
Australia Information Technology Report Q3 2015
© Business Monitor International Ltd Page 22
Macroeconomic Forecasts
Economic Analysis
BMI View: Australia's Q414 real GDP growth figures painted a mixed picture, but still show the Australian
economy on a slowing trend. We maintain our forecast for real GDP growth to come in at 2.3% in 2015,
versus consensus expectations of 2.5% as the ongoing terms of trade shock continues, with economic
weakness likely to extend to the real estate and domestic services sectors. The agriculture and export-
focussed industries are likely to benefit from a weaker Australian dollar.
Australia's real GDP growth slowed slightly in Q414 in year-on-year (y-o-y) terms, coming in at 2.5%
versus 2.7% in Q314. In seasonally adjusted quarter-on-quarter (q-o-q) annualised terms there was a pick-
up to 2.2%, from 1.4% in Q314. Overall, the trend remains one of slowing trend growth, with the peak of
the cycle coming in Q114. We maintain our forecast for real GDP growth to come in at 2.3% in 2015,
versus consensus expectations of 2.5% as the ongoing terms of trade shock continues. As trend real GDP
growth settles at around 2.3% over the coming years (or possible below), we expect continued low inflation,
and further Australian dollar weakness.
Australia Information Technology Report Q3 2015

© Business Monitor International Ltd Page 23
Growth Slowing On Any Measure
Australia - Real GDP Growth, y-o-y and q-o-q S.A.
Source: BMI, ABS
PMI Off To A Poor Start In 2015
More timely economic data show the economic growth slowdown has continued into 2015. The
performance of services index (PSI) and the performance of manufacturing index (PMI) from the Australian
Industry Group tend to reflect trends in the overall economy. While the PSI bounced slightly in February,
the strength was outweighed by weakness in the PMI, resulting in the average of the two coming in below
the 50 level for the seventh consecutive month.
Australia Information Technology Report Q3 2015
© Business Monitor International Ltd Page 24
Remaining Below 50
Australia - Performance Of Manufacturing And Services Indices
Source: BMI, AIG
Real Exports And Investment In Role Reversal
From an expenditure perspective, the overriding theme of the past few quarters has been the surge in net
exports as a contributor to real GDP growth. Net exports have contributed to growth for the past 10
quarters, while fixed capital formation (a combination of new investment, maintenance, and inventory
change) have acted as a drag for the past eight. These trends go hand in hand, with declining mining sector
investment dragging down imports while exports continue surge to new highs. Indeed, in real terms imports
peaked in 2012, and the decline is accelerating, while exports are posting strong growth.
Australia Information Technology Report Q3 2015
© Business Monitor International Ltd Page 25