Australia's Mining Boom Forecast to Peak in 2 Years
A report released by budget forecaster Deloitte Access Economics sent a chilling warning to Australia’s heads of finance: the mining boom, responsible for propelling the nation through the GFC and beyond, will come to an end within the next two years.
Though the prediction does not pose an immediate threat to Australia’s economy, The Australian noted that Treasurer Wayne Swan will have quite a lot of decisions to make before providing a budget update in November.
''If it shows this year's forecast $1.5 billion budget surplus is no longer there, he will have to decide whether to cut again in order to continue to forecast a surplus,” said Access director Chris Richardson to The Australian. “The risk is the cuts will hurt. The window dressing in the May budget was designed not to hurt.”
SEE RELATED STORIES FROM THE WDM CONTENT NETWORK:
- Australia Poised to Become #1 Global Supplier of LNG
- Subsea Mining Banned in NT Until 2015
- Australia's Mining Queen
- The 'Gas Rush' Heads to Australia's Northern Territory
A drop in the market prices of iron ore and coal, two of the nation’s biggest commodities, is having a big impact on the national budget outlook in connection with the report.
“The budget is more exposed to commodity prices than it used to be. They drive profits, which [drive] company tax, but they now also drive takings from the minerals resource rent tax,” said Mr Richardson.
However, Business Spectator reported that a decline in mineral prices has already been factored into the economic budget and that Trade Minister Craig Emerson is confident in the security of the nation’s well-regarded global economic stance that just passed 21 years of consecutive growth.
"We are returning the budget to surplus," he reportedly told ABC Television.
Timeline: India takes unicorn leap with six in five days
We chart an historic week in India’s tech industry, where in just five days, between 5-9 April 2021, the country achieved six new unicorns, bringing India’s total to 10 in 2021 to date, an immense unicorn leap from just seven in 2020 and six in 2019.
April 5: Meesho
India’s first social commerce unicorn, Meesho raised US$300m from SoftBank, Facebook and Shunwei Capital, giving the Bangalore-based startup a US$2.1bn valuation, a threefold jump from its previous funding round in 2019. Founded in 2015 by two IIT-Delhi graduates, Meesho connects producers and resellers, helping small businesses sell through social media. It has 45m customers and has enabled 13m entrepreneurs to start their online businesses with no investment.
April 6: CRED
Founded just over two years ago, Bangalore-based credit card repayment app CRED raised US$215m from Falcon Edge Capital and Coatue, nearly trebling its valuation to US$2.2bn from its January US$80m round. Allowing customers to pay off their credit card debt while earning CRED coins which they cash in for rewards, CRED has grown rapidly during COVID-19, doubling its customer base to nearly 6 million in a year.
April 7: API Holdings / Groww
The first epharmacy startup to gain unicorn status, PharmEasy (API Holdings), which has digitised 60,000 brick and mortar pharmacies and 400 doctors across India, raised US$350m in a round led by Prosus Ventures. Founded by four former Flipkart employees as a way of making investing simple, investment platform Groww became India’s second-youngest fintech unicorn, raising US$83m in Series D funding led by Tiger Global, quadrupling its previous round in September.
April 8: ShareChat
New Delhi-grown social media startup ShareChat, founded in 2016 by Mohalla Tech raised US$502m from Lightspeed Ventures, Tiger Global, Twitter and Snap taking its raised total over six rounds to US$766m and pushing its valuation to US$2.1bn. The funding will be used to grow its user base and short video platform Moj, which launched in 2020 following TikTok’s ban in India. The regional language startup claims 280m users.
April 9: Gupshup
AI-led conversational message startup joined the unicorn club after raising US$100m from Tiger Global giving it a ten-fold valuation of US$1.4bn. The smart messaging platform, which has seen accelerated growth during the pandemic, was founded in Bangalore in 2005 by serial entrepreneur Beerud Sheth, whose online freelancing platform Elance is now listed. Gupshup’s API enables 100,000+ businesses to build messaging and conversation experiences across 30+ communication channels.