MBA Australia

Australian Economy

The Economy of Australia is a prosperous, one of the strongest economies in the world competitive, open, vibrant and flexible, with a per capita GDP slightly higher than France and Germany, although slightly lower than the United Kingdom or the United States.

The International Monetary Fund (IMF) has commended Australia on the sound macroeconomic management and continuing structural reform efforts that have underpinned its sustained strong economic performance.

During the last 15 years, Australia's standard of living has risen substantially. According to the 2006 Economic Survey by the Organisation for Economic Cooperation and Development (OECD), living standards in Australia now surpass those of all Group of Eight countries except the United States.

Since 1990, Australia's real economy has grown by an average of around 3.3 per cent a year. Australia's GDP in 2006 (in value terms) was around $1 trillion.

Australia's strong economic growth has been coupled with low inflation. The inflation rate has been stable during the last 15 years, averaging around 2.5 per cent over this period. Unemployment has fallen, from a peak of nearly 11 per cent in 1992 to below 5 per cent, its lowest level since the 1970s.

The Australian economy is dominated by its services sector (68% of GDP), yet it is the agricultural and mining sectors (8% of GDP combined) that account for 65% of its exports. Rich in natural resources, Australia is a major exporter of agricultural products, particularly grains and wool, and minerals, including various metals, coal, and natural gas. A downturn in world commodity prices can thus have a large impact on the economy.

Australia's competitive advantage in primary products is a reflection of the natural wealth of the Australian continent and its small domestic market; 20.6 million people occupy a continent the size of the contiguous United States. Service industries have expanded in recent decades at the expense of the manufacturing sector, which now accounts for just fewer than 12 per cent of GDP.

Economy Statistics

These are some of the most important statistics of Australia's economy :

Economy of Australia Currency Australian Dollar ($A or A$, AU$ or $AU, AUD) Fiscal year 1 July - 30 June Trade organisations APEC, WTO and OECD Economy Statistics GDP ranking 34th (2003) GDP (purchasing power parity – PPP) $645.3 billion (2006 est.) GDP (official exchange rate) $NZ921.5 billion (2005) GDP growth 3.8% (Q2 2007) GDP per capita (PPP) $32,900 (2006 est.) GDP composition by sector agriculture (3.8%) industry (26.2%) services (70%) (2005 est.) Inflation rate 2.1% (Q2 2007) Pop below poverty line N/A (2006) Budget Revenues $NZ375.6 bn, Expenditures $NZ361.2 bn Public debt 16.1% of GDP (2005) Reserves and foreign exchange and gold $NZ65.1 billion External debt $NZ486.3 billion Economic aid donor $NZ1.344 million Unemployment 4.3% (Q2 2007) Arable land 6.15% Labour force 10.66 million (2006 est.) Labour force by occupation agriculture 3.6% mining 1.1% industry 20.2% services 75.1% (2004) Industries mining, industrial and transportation equipment, food processing, chemicals, steel. Natural resources bauxite, coal, iron ore, copper, tin, gold, silver, uranium, nickel, tungsten, mineral sands, lead, zinc, diamonds, natural gas, petroleum. Trading Partners Exports $117 billion (2006 est.) Export goods coal, gold, meat, wool, alumina, iron ore, wheat, machinery and transport equipment. Main partners Japan 20.3%, China 11.5%, South Korea 7.9%, US 6.7%, New Zealand 6.5%, India 5% (2005) Imports $127.7 billion (2006 est.) Imports goods machinery and transport equipment, computers and office machines, telecommunication equipment and parts; crude oil and petroleum products. Main Partners US 13.9%, China 13.7%, Japan 11%, Singapore 5.6%, Germany 5.6% (2005) Public finances Public debt $585.1 billion (30 June 2006 est.) External debt $15.5bn (2003) Revenues A$222.9 billion (2005-2006) Expenses A$206.0 billion (2005-2006) Economic aid donor: ODA, $2.5 billion (2005/06 Budget)

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