Just over forty percent of Australian exporters who have diversified their trade markets are doing better financially than they were a year ago, a study has found.
“Businesses that maintained a wider range of export destinations were able to manage risks better. A little under half (43 percent) of those diversified businesses reported being financially better off now than 12 months ago,” the report stated.
“Businesses also underscored the importance of market diversification when exporting, with those businesses selling into a greater number of export markets more likely to report being better off financially compared to a year ago,” he said.
However, the survey also found that 51 percent of the respondents said restrictions imposed by foreign governments were a major problem, with 53 percent saying China was the primary market where businesses experienced a significant disruption. It was followed by South Korea (50 percent), Vietnam (50 percent), and Japan (47 percent).
China was also identified as the primary market where the rejection of goods and increasing regulatory requirements caused a large disruption to Australian exporters, with agribusiness exporters being the most affected.
This comes after the Chinese regime targeted Australian exporters for economic coercion after the Australian Foreign Minister Marise Payne called for an investigation into the origins of COVID-19 in April 2020.
The Chinese regime responded by targeting eight of Australia’s primary export industries to China, including beef, lamb, honey, coal, timber, wine, and timber.
“Australian businesses have remained steadfast, and it is positive to see more businesses in 2021 reporting growth and 69 percent expecting further increases in 2022,” said Gary Edstein, CEO and senior vice president at DHL Express Australia.
Edstein also noted that 48 percent of Australian exporters expected to employ more workers in the coming 12 months, and 57 percent were expecting to pay a wage increase.