Executive Director of the Australian Bureau of Agricultural and Resource Economics (ABARE), Phillip Glyde, said that the forecast increase in commodity exports is underpinned by continued robust performance in the mineral resources sector and an expected strong recovery in the farm sector.

The value of Australia's mineral resources exports is forecast to be $153 billion in 2008-09, a rise of 33 per cent from a forecast $115 billion in 2007-08.

Assuming average seasonal conditions, the value of farm exports is forecast to reach $31 billion in 2008-09, 18 per cent higher than a forecast $27 billion in 2007-08.

"Despite the economic slowdown in the United States, continued strong performance in the emerging market economies, particularly China and India, should provide support for higher commodity demand and export shipments," Mr Glyde said.

Managing Director and Head of Asia Pacific Economic and Market Analysis in Citigroup, Yiping Huang, said that China and the rest of Asian economies are expected to be resilient to weaker economic growth in the United States.

Nevertheless, downside risks to the Asian economic OUTLOOK have increased.

"There is a possibility that China"s economy will be adversely affected by the potential slowing in exports, which could also affect domestic economic conditions," Dr Huang said.

However, continued industrialisation and urbanisation in China are expected to support global commodity demand and prices.

ANZ bank Chief Economist Saul Eslake said the economic expansion in Australia is expected to be robust for the next two years. Economic growth in Australia is forecast to be 3.3 per cent in 2008, before declining to 2.8 per cent in 2009.