Australia’s commodity export earnings are forecast to increase by 7% to a record $A148 billion in 2007-08.

“The growth in export earnings forecast for 2007-08 mainly reflects increased shipments of iron ore, coal, LNG, copper, grains and oilseeds in response to strong demand in overseas markets,” ABARE executive director Phillip Glyde said upon releasing the March quarter issue of Australian Commodities.

The total value of Australia’s minerals and energy exports is forecast to rise by 8% to $116 billion in 2007-08, following a forecast rise of 17% to $108 billion in 2006-07.

In 2007-08 iron ore is forecast to be Australia’s largest export commodity (in value terms), followed by metallurgical coal, gold and nickel.

Over the medium term, the value of Australian commodity exports is projected to rise in real terms in 2008-09, before gradually easing towards the end of the projection period.

By 2011-12, Australian commodity exports are projected to be worth around $141 billion in 2006-07 dollars, 2% higher than in 2006-07.