Over the last two decades, Australia's economy has experienced positive reforms that have boosted its economy, and raised its standard of living. Australia is today riding the commodity boom, in particular signing massive contracts with China to feed the fastest growing large economy in the world with the raw materials and energy it so badly needs.
Australia is the thirteenth largest economy in the world. As of 2009, Australia GDP was estimated to be $920 billion. Australia has managed an impressive 18 years of continuous growth since 1992 - see Australia GDP Growth. Even during the Financial Crisis, Australia kept growing, managing 0.732% thanks to its commodity exports. Forecasts suggest growth will continue at least for the next five years, peaking at 3.4% in 2012.
Indeed, being both a country and a continent, the only one in the world, Australia is a land of huge natural resources and beautiful coastlines. Australia geographhas a massive land area of 7,617,930 square kms (Australia geography).
Being a land with enough variation in topography and sand, huge deposits of gold, iron, bauxite, iron, manganese, opals and sapphires have been identified. Natural gas deposits are evenly spread throughout the continent.
Given these factors, it is no wonder that the Australian economy is one of the strongest economies in the world and follows a laissez-faire policy. The country features an enviable per capita GDP of $37,302 (Australia GDP per capita), slightly higher than that of the United States, UK, Germany and France, putting it in 15th position.
This is partly due to the small Australian population of 22,175,475 (2010 estimates) in a large country. A majority of the population resides in the vicinity of Sydney, Melbourne, Adelaide, Perth and Brisbane.
Australia is a western-style market economy. The services sector is the largest, accounting for 71% of GDP in 2008 (Australia Gross Domestic Product by Sector). Although the agricultural and mining sectors are small, 4.7% of GDP combined, they contribute approximately 65% of exports.
Australia Economy Rankings
Here are some rankings for the Australian economy:
* Ranked second in the United Nations 2009 Human Development Index
* First in Legatum's 2008 Prosperity Index
* Sixth in The Economist worldwide Quality-of-Life Index for 2005
* Melbourne was listed 2nd in The Economist's 2008 World's Most Livable Cities list (Perth was 4th, Adelaide was 7th and Sydney was 9th)
* As of 2010, the Australian Securities Exchanges ranks 9th in the world, following the 2006 merger of the Sydney Futures Exchange and the Australian Stock Exchange.
Australia Economy: What Makes it Strong?
Australia is the thirteenth largest economy in the world. As of 2009, Australia GDP was estimated to be $920 billion. Australia has managed an impressive 18 years of continuous growth since 1992 - see Australia GDP Growth. Even during the Financial Crisis, Australia kept growing, managing 0.732% thanks to its commodity exports. Forecasts suggest growth will continue at least for the next five years, peaking at 3.4% in 2012.
Indeed, being both a country and a continent, the only one in the world, Australia is a land of huge natural resources and beautiful coastlines. Australia geographhas a massive land area of 7,617,930 square kms (Australia geography).
Being a land with enough variation in topography and sand, huge deposits of gold, iron, bauxite, iron, manganese, opals and sapphires have been identified. Natural gas deposits are evenly spread throughout the continent.
Given these factors, it is no wonder that the Australian economy is one of the strongest economies in the world and follows a laissez-faire policy. The country features an enviable per capita GDP of $37,302 (Australia GDP per capita), slightly higher than that of the United States, UK, Germany and France, putting it in 15th position.
This is partly due to the small Australian population of 22,175,475 (2010 estimates) in a large country. A majority of the population resides in the vicinity of Sydney, Melbourne, Adelaide, Perth and Brisbane.
Australia is a western-style market economy. The services sector is the largest, accounting for 71% of GDP in 2008 (Australia Gross Domestic Product by Sector). Although the agricultural and mining sectors are small, 4.7% of GDP combined, they contribute approximately 65% of exports.
Australia Economy Rankings
Here are some rankings for the Australian economy:
* Ranked second in the United Nations 2009 Human Development Index
* First in Legatum's 2008 Prosperity Index
* Sixth in The Economist worldwide Quality-of-Life Index for 2005
* Melbourne was listed 2nd in The Economist's 2008 World's Most Livable Cities list (Perth was 4th, Adelaide was 7th and Sydney was 9th)
* As of 2010, the Australian Securities Exchanges ranks 9th in the world, following the 2006 merger of the Sydney Futures Exchange and the Australian Stock Exchange.
Australia Economy: What Makes it Strong?
The key contributing factors are demand for commodities, growing ties with China, low inflation, a housing market boom and strong emphasis on reforms. High export prices for agricultural products, energy and raw materials provide steady and growing foreign exchange income, leading to increasing business and consumer confidence gave a boost to the national economy. The mining states in particular notched up huge growth numbers.
During mid-2008, growth was constrained due to a tight labor market and infrastructure bottlenecks. The trade deficit went up because of strong import demand, a drought and a strong currency. However, the country managed to somewhat escape the bayonet of the Great Recession, which many other developed economies could not. The country’s strong banking sector, monetary and fiscal stimulus, investment from China and sharp buoyant export demand acted as protective factors.
In October 2009, the central bank raised its key rate, making Australia the first G20 country to constrict its monetary policy. Some of the major plans for the 2010 economic development include raising economic productivity, passing the emissions trading legislation and furthering economic relations with China. The government also plans to focus on drought, devastating bushfires and other climate-related issues.
G20
Australia is part of the G-20, Group of Twenty.
Further Resources
Find out about forex and forex courses in Australia.
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