Despite growing concerns over the slowing of Australian economy some industries are well geared for a power pack performance in 2016. This has been revealed in a report by IBISWorld. It predicted that the following five Australian industries will have a roaring business performance.
- Cotton industry
- Organic farming
- Internet publishing and broadcasting
- House-ware products
The report said cotton industry will grow phenomenally in 2015-16 at an average 19.2 percent growth and the revenue will touch AU$879.0 million. The growth will be powered by the increase in global cotton prices, reports Yahoo Finance News.
“The cotton growing industry is highly volatile, with revenue movements ranging between 136.1% growth and 62.7% decline over the past five years,” said IBISWorld senior industry analyst Spencer Little.
Regardng Internet publishing and broadcasting, the report said the business demand will be strong in real estate, car and job advertising space. This new demand will drive revenue growth by 9.4 percent in 2015-16 to hit $1.7 billion. The industry growth in 2016 will get a further fillip by the entry of popular video streaming websites such as Netflix, Stan and Presto.
In the organic farming industry, the report forecast a revenue growth of 5.6 percent and said the revenue will cross AU$733.8 million. The spurting demand in Australia and overseas will positively impact the business. It is being driven by rising healthcare awareness among the consumers. “The industry is expected to continue to grow strongly as organic consumption becomes more mainstream,” Little said.
The boom in house-ware products will be on the back of rise in residential building construction and new house starts. Alterations to existing buildings will also drive up Housewares revenue by 5.1 percent in 2015-16, the report said.
The revenue growth in the university and higher education industry will be 4.6 percent through 2015-16 and it will reach AU$29.6 billion. This is being catalysed by higher enrolments from domestic and international student communities. The growth in international student enrolments has been excerbated by the liberalization of student visas and depreciation of the Australian dollar.
Despite the boom picture of some Australian business sectors, Tim Toohey, the head of macro research at Goldman Sachs for Australia and New Zealand believes that the Aussie economy is not at all free from serious challenges, reports Business Insider.
Reflecting on the business investment outlook, Toohey said in Sydney that the Australian Treasury’s expectation for private sector investment is exceedingly “optimistic.” He said the CapEx survey from the Australian Bureau of statistics was more realistic. Toohey called CapEx survey as a “reliable indicator.”