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Published 09 July 2012 13:16, Updated 10 July 2012 14:54
We told you on July 5 about pink diamonds’ 30 per cent price surge over the past five years. Now business research firm IBISWorld predicts all diamond and gemstone mining revenue will grow by 35.6 per cent this financial year to reach $509 million, topping the firm’s annual list of industries that will fly and fall.
Demand for shiny jewels has started to recover worldwide and production is up almost 40 per cent. Australia exports 93 per cent of its gemstone and diamond production and IBISWorld general manager Karen Dobie expects this to continue in the face of a strong dollar, with particular interest from India.
Electricity generation, pre-school education, superannuation funds and organic farming are the other four industries IBISWorld expects to fly this year; their revenue growth is estimated to be between 28 and 15 per cent. “Trends in electricity demand, production and prices are expected to be broadly reflected in industry performance,” Dobie says. “Low-cost producers will be able to take advantage of short-term increases in demand and are anticipated to perform well in the coming year.” Electricity generation industry revenue is forecast to increase 28.7 per cent this year to reach $19.1 billion, largely driven by the flow-on effects of the carbon tax.
The outlook for iron and steel manufacturing, cotton growing and recorded media manufacturing and publishing is less attractive. “Australia’s steel market has been disadvantaged globally due to the high Australian dollar, which is expected to remain high, resulting in a forecast export decline of about 45 per cent over the coming year,” Dobie says.
IBISWorld forecasts iron and steel revenue will fall by 15.6 per cent. Manufacturing of paper and vending machines is also predicted to decline.