The total value of Australia's minerals and energy exports is forecast to reach $116 billion in 2007-08, following a forecast rise of 17 per cent to $108 billion in 2006-07.

Under the assumption of average seasonal conditions, the value of farm exports is forecast to be $27.2 billion in 2007-08, compared with a forecast $26.3 billion in 2006-07.

"The forecast increase in commodity export earnings is underpinned by strong performance in the world economy. In particular, continued high economic growth in China is expected to provide support for commodity demand," Mr Glyde told the conference.

Presenting an OUTLOOK for the world economy, Peter Morgan, Chief Economist, Asia Pacific HSBC, told the conference that expansion of the global economy is expected to March on in 2007, albeit at a pace slower than in 2006.

According to Mr Morgan, economic growth in the world"s largest economy, the United States, is expected to slow in the short term. Offsetting the effect of slower US economic growth will be continued strong economic performance in China and its neighbouring countries in east and south east Asia.

Supported by strong export performance, the economic expansion in Australia will continue in 2007, according to Dr Chris Caton, Chief Economist, BT Financial Group. Economic growth in Australia is forecast to be around 2.8 per cent in 2007, before rising to 3.5 per cent in 2008.