Export Mix Moves Upmarket

Export mix is moving toward higher-value manufacturing and services: electronics exports reached $48 billion in FY26, 10.8% of merchandise shipments, while engineering goods exceed 26%. This shift may improve resilience, but firms still need logistics and skills upgrades to compete.

EU Trade and Investment Deepening

Vietnam and the EU are prioritising full EVFTA implementation and EVIPA ratification, alongside Global Gateway and energy-transition investment. Cooperation spans strategic infrastructure, technology and critical raw materials, potentially broadening market access and European capital flows. [r35H]

Resource Projects Face Local Consent Risks

Proposed rare-earth extraction and fracking in South Australia could add energy supply and roughly 100 project jobs, but groundwater, farmland and community acceptance are contested. Permitting uncertainty may delay investment and intensify due diligence for resource and agricultural businesses.

Quad Supply Chains and AI

Quad ministers backed resilient, trusted semiconductor and AI-hardware supply chains, critical-mineral cooperation and over $85 million in regional AI assistance. A planned business-leaders forum may create commercial openings, while efforts to reduce single-supplier dependence reshape sourcing and partnership choices.

Transport Infrastructure Funding

The 2027 transport budget falls to €25.3 billion, while funding for Autobahn GmbH investment is reduced by nearly €2 billion and the company may borrow directly. These changes could affect project timing and contractors’ visibility.

Currency And Dollar Liquidity

The pound faces pressure from regional risk, foreign debt flows and hard-currency import demand. Around $55 billion in short-term investments and reported recent outflows of roughly $4 billion illustrate reversal risk; currency swings could raise input costs and complicate pricing.