Management

August 2010

After the global economic recession caused by the financial crisis in 2008, the economies of Oceania have been showing relatively fast recovery compared to those of other leading developed regions, with resurgence of resource prices leading to pronounced recovery from the latter half of fiscal 2010.

In the World Economic Outlook released on the 6th of July, International Monetary Fund (IMF) expects Australia will remain in the lead in the global recovery, with stronger GDP growth, lower unemployment and much lower debt than other advanced countries. It forecasts Australian economy to grow 3% in 2010 and 3.5% in 2011. It also expects robust commodity prices, which will place Australian economy in an advantageous position to benefit from the world’s fastest growing region, Asia, that has strong appetite for Australian commodities.

In contrast to the commitment agreed by G20 countries to at least halve their budget deficit by 2013, the Australian government pledged to be returning to surplus in 2012/13. To this end, it is implementing various reforms that will enhance its economic strength, including changing the corporate tax rate and so forth.

Taking advantage of such situation,　we are determined to continue IAL’s sound and sustainable growth by emphasizing existing business areas such as coal, iron ore, and other mineral resources, as well as targeting business expansion by further developing businesses in food, forest resources, and timber products, as well as infrastructure projects, such as water and railway.

As has always been, Itochu Australia is committed to contribute to economies of both Australia and Japan, as well as enhancement of economic relationship between them, through our business activities.

Tatsuo Fujino
Managing Director & Chief Executive Officer,

ITOCHU Australia Ltd.