Export earnings from resources and energy are expected to grow by 30% to $208 billion in real terms between 2015-16 and 2020-21, according to the Resources and Energy Quarterly report released by the Chief Economist of the Department of Industry, Innovation and Science.
Much of this growth is on the back of Liquefied Natural Gas (LNG), for which export earnings are forecast to increase by around 150% to $42 billion.
The Australian iron ore industry is facing some headwinds at present, but the medium term outlook is bright, with export earnings set to increase by 29% to $72 billion by 2020-2021. Australian production will then potentially account for almost 60% of global iron ore trade.
The global trend of urbanisation, especially in Asian economies, will be a major driver of demand for Australia's resource and energy products.
India could play a central role, as its electricity use is expected to increase by 7.7% per year over the medium term. As a result, India's thermal coal imports could grow by around 6% and LNG imports by around 19% each year over the medium term.