5 industries – and companies – to drive the economy for 20 years

A new Deloitte Access Economics report has revealed five industries that could boost the Australian economy significantly over the next 20 years, highlighting that the economy must become more diversified and not solely reliant on natural resources.

Over the last decade, companies such as BHP Billiton (ASX: BHP), Rio Tinto (ASX: RIO) and countless other mining corporations have driven the economy. However, as recognised by the report’s co-author, Chris Richardson, “the boom is slowing and our competitive advantage is being challenged… It’s all about catching the next wave. We need another wave – or several – to create a more diversified growth.”

Whilst mining is anticipated to continue being a major driver of growth, it is expected that agribusiness, gas, tourism, international education and wealth management are well-positioned to join it as the global population grows. The report expects the Australian dollar will continue weakening, and soon retreat to around US80 cents.

Companies to benefit

Ruralco (ASX: RHL) is one diversified agricultural company that should benefit from this trend. As the population grows, the company can use its geographical location and access to resources to supply soft commodities. Likewise, global crop protection company Nufarm (ASX: NUF) could realise strong gains in sales as farmers look to protect their products.

BHP is also set to benefit from agricultural growth after having committed to investing a further US$2.6 billion in its Jansen potash project in Canada. Potash is a fertilizer ingredient and whilst it is facing short-term pricing pressures, it boasts good long-term potential.

As Asian countries experience growth, more gas will also be required. To take advantage of growth in the gas industry, Woodside Petroleum (ASX: WPL) and Santos (ASX: SAN) are your safest bets.

Meanwhile, education services provider Navitas (ASX: NVT) is well worth a look at. Operating in multiple cities around the world already, Navitas has scope for further growth.

Based on its current price, Webjet (ASX: WEB) is one of the more attractive tourism companies to add to your portfolio. Webjet is an online travel agency that allows customers to search and book domestic and international products, including flight deals, travel insurance and hotel accommodation. With a market capitalisation of under $300 million, Webjet also has plenty of growth opportunities ahead of it.

Finally, Yellow Brick Road (ASX: YBR) is a good option to take advantage of growth in the financial industry. Led by Mr. Mark Bouris – the founder of mortgage lender Wizard Home Loans – the company increased its revenue for the year to 30 June by 68.36%, and looks set to continue delivering good results for years to come.

Foolish takeaway

Although it is important to invest with the future firmly in mind, it is just as vital to purchase shares at attractive prices to better ensure good returns in the long run.

If you’re wanting to capitalise on such an opportunity, then perhaps you might be interested in our #1 dividend-paying stock? Discover The Motley Fool’s favourite income idea for 2013-2014 in our brand-new, FREE research report, including a full investment analysis! Simply click here for your FREE copy of “The Motley Fool’s Top Dividend Stock for 2013-2014.”

More reading

Motley Fool contributor Ryan Newman does not own shares in any of the companies mentioned.

The 5 mining stocks we’re recommending in 2019…

For decades, Australian mining companies have minted money for individual investors like you and me. But if you believe the pundits and talking heads on TV, those days are long gone. Finito! Behind us forever…

We say nothing could be further from the truth. To earn the really massive returns, you’ve got to fish where others aren’t fishing—and the mining sector could be primed for a resurgence. That’s why top Motley Fool analysts just revealed their exciting new research on 5 ASX miners they believe could help you profit in 2019 and beyond…


The best way we see to play the global zinc shortage… Our #1 favourite large-cap miner (hint: it’s not BHP)… one early-stage gold miner we think could hit the motherlode… Plus two more surprising companies you probably haven’t heard of yet!

For free access to our brand-new research, simply click here or the link below. But be warned, this research is available free for a limited time only, and we reserve the right to withdraw it at any time.

Click here for your FREE report!