FEAR & GREED | Business News Our $9 billion export that nobody talks about
Jan 15, 2026
Luci Ellis, Chief Economist at Westpac, dives into the intricate dynamics of global trade and macroeconomic forces, particularly the impact of the US and China on Australia. She reveals the underappreciated $9 billion success of Australia's software licensing exports, which are set to skyrocket by 2025. Luci emphasizes the need for Australia to diversify beyond iron ore, focusing on services and critical minerals as future growth areas. It's an enlightening discussion on navigating new economic landscapes!
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US-Driven Headline Volatility
- Donald Trump's election has added headline-driven volatility to global markets since inauguration.
- Luci Ellis says many announced moves are ambit claims that often don't fully play out.
Media Attention Overstates US Trade Impact
- The US occupies outsized media bandwidth relative to its direct trade impact on Australia.
- Luci Ellis points out trade links are small and many exports to the US are goods where Australia is already competitive.
China Drives Concentrated Trade Risks
- China is Australia's largest trading partner with concentrated exports like iron ore and education.
- Reaching peak steel in China reduces scope for further growth in iron ore exports.