The resources and energy sectors are expected to continue to struggle throughout 2026 due to trade barriers, according to the Department of Industry, Science and Resources (DISR) December 2025 Resources and Energy Quarterly.
The global outlook forecasts a modest recovery in 2027, following the International Monetary Fund’s (IMF) growth of 3.2% in 2025 and 3.1% in 2026. The IMF has had an upwards revision since the July 2025 quarterly, though still noting a 0.1% downgrade over this next period.
Trade restrictions are expected to continue to impact the sector, with trade volumes projected to be lower in 2025 and 2026 in comparison to October 2024.
Global industrial production is also expected to decrease in 2026 to 2.4%, before picking up to 2.8% in 2027. IMF reports the world industrial production to have increased 0.9% in February 2025.
The World Economic Forum places the resources and energy industry as second in reshaping the global manufacturing landscape in its 2024 report due to the sector’s adoption of renewable energy sources, promoting energy efficiency and embracing circular economic principles to enhance long-term sustainability.
Down from tariff rates of 65% in April 2025, China is still facing high rates on US tariffs. Rates are currently sitting around 45% according to the DISR quarterly.
DISR expects the Chinese Government to set its 2026 growth target as similar to its 2025 target.
Write to Maddison Elliott at Mining.com.au
Images: iStock
