High dollar not bothering exporters

Most exporters expect orders from overseas to increase in the next 12 months, despite concerns the high Aussie dollar makes them less competitive.

Exporters are shrugging off concerns about the stubbornly high Australian dollar and are feeling increasingly optimistic about selling to Asia, the Middle East and North America.

A study commissioned by transport giant DHL shows 61 per cent of exporters expect orders from overseas to increase over the next 12 months, up from 58 per cent a year ago, despite worries about the high exchange rate and international competition.

The Australian dollar is currently trading around 94 US cents and has remained above 94 cents in recent months despite falling terms of trade and an improvement in the US.

University of New South Wales economist Tim Harcourt said talk of the impact of the Aussie dollar on exporters was exaggerated, given roughly three quarters of exporters were also importers, meaning the exchange rate helped keep their costs down.

"I never understand why people talk about exporters and importers like they are two distinct parts of the economy, they are actually pretty much the same people," he told AAP.

"So it's a bit of swings and roundabouts, (the high dollar) makes things a little more costly on the revenue side but a little bit cheaper in terms of imports."

The confidence among exporters goes against recent official trade figures, which showed Australia's trade deficit unexpectedly rose to $1.9 billion in June.

Exporters are most optimistic about the outlook for markets in the Middle East, with 54 per cent expecting orders to increase, followed by the US and China (51 per cent).

Mr Harcourt said recent free trade agreements with Japan and Korea, along with an expected agreement with China, were also likely to boost exports to Asia.

The report showed miners were the least confident exporters while those in services like education were the most positive.

Agricultural exporters are also increasingly confident, amid growing demand for safe food from Asia.

"You've heard a lot about the mining boom, well what we're looking at now is the dining boom," Mr Harcourt said.


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