Why is Australia the fastest growing AAA-rated commodity exporter?
Credit ratings agency Moody’s has said that Australia is the fastest growing AAA-rated commodity exporter this year — despite growing government debt. But precisely what accounts for the sunny outlook? And can it be sustained in the long term?
Three letters: GDP
Moody’s forecasts faster GDP growth in Australia than in some of its fellow AAA-rated commodity-exporting peers, including New Zealand, Norway and Canada. Even with government debt set to rise to 41 percent of GDP by 2017, Australia will still be less burdened than Canada and a handful of other AAA-rated sovereigns .
What mining boom?
Commodity prices may be on the rise, but they likely won’t reach the heights of previous years. However, a weaker Australian dollar has resulted in a more robust service sector and record-low interest rates have led to an increased market share for education services and tourism.
The power of the lower dollar
The weakened Aussie dollar has also made the country’s non-commodity exports more affordable for consumers. As a result, the country has reaped the benefits of an increased share of global demand and higher export volumes.
How long can this last?
House prices in Australia have been on the rise in recent years, and the country’s ongoing dependence on foreign investment has left it vulnerable to any negative shocks offshore. "Still, the robustness of Australian institutions shores up investor confidence and mitigates the risk of any abrupt tightening in financing conditions," Moody's said. Let the boom roll on...
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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.