Australia

Economic and political outline

Economic indicators | Foreign Trade in figures | Sources of economic information | Political outline

Economic indicators

The Australian economy is currently experiencing lasting growth, even exceptional growth for a developed country (a rate of 3.6% per year on average since 1992) by reason of expanding domestic demand and a significant, regular increase in exports, especially mineral and energy raw materials whose prices have rocketed since 2006. The growth of GDP should be 3.5% in 2007-2008 (4.3% in 2006-2007).
High interest rates and the return of drought are likely to have an unfavorable impact on economic growth.
The rate of unemployment is historically low in 2007-2008 (4.2%, the lowest since 1974). Pressure on production capacities (insufficient infrastructures, lack of manpower in some sectors) fuels inflationary pressures (3.5%). Successive rises in the central bank's prime rates (7% in 2008) and record debt are not restricting household consumption.
Australia currently has two main challenges: its ageing population and the increase in value of its currency which weakens its competitiveness especially in relation to Asian countries.

GDP Indicators	2004	2005	2006	2007	2008
GDP (billions USD)	639.39	712.62	755.66	889.68e	942.33e
GDP (constant prices, annual % change)	3.7	2.8	2.7	4.4e	3.8e
GDP per capita (USD)	31,742.47	34,941.50e	36,594.25e	42,552.62e	44,514.40e
General government balance (in % of GDP)	2.0	2.4	1.6e	0.8e	1.0e
Inflation rate (%)	2.3	2.7	3.5	2.3e	2.8e
Unemployment rate (% of the labor force)	5.4	5.1	4.8	4.4	4.3
Current Account (billions USD)	-38.57	-41.28	-41.49	-50.82e	-52.99e
Current Account (in % of GDP)	-6.0	-5.8	-5.5	-5.7e	-5.6e

Source: IMF - World Economic Outlook Database

Note: (e) Estimated data

Socio-demographic indicators	2006	2007	2008
Unemployment rate (%)	4.8	4.4	4.3

Source:

Main sectors of industry

Australia is a vast agricultural country and one of the world's main exporters of wool, meat, wheat and cotton. The country is overflowing with mineral and energy raw materials whose export brings in substantial revenue.
Australia is in the top 10 producers and exporters of most mineral ores. It has among the world's greatest reserves of numerous strategic resources such as uranium, of which it has 40% of the world's proven reserves.
As a country which traditionally imported finished goods, it became industrialized in its recent history and its industry is on a modest scale (only 10% of the Australian active population). The manufacturing industry is built up around the agri-food industry (19.8% of the workforce); machines and equipment (18.9%), processing metals and metal goods (18.2%) and the chemical -petrochemical industry (13.3%).
The tertiary sector occupies a dominant position in the Australian economy (77% of GDP).

Breakdown of economic activity by sector	Agriculture	Industry	Services
Value added (annual % change)	-6.1	1.2	3.1
Value added (in % of GDP)	3.3	27.0	69.6
Employment by sector (in % of total employment)	3.6	21.1	75.0

Source: World Bank - World Development Indicators - last available data.

Monetary indicators	2002	2003	2004	2005	2006
Average annual exchange rate for 1 USD	1.84	1.54	1.36	1.31	1.33

Source: World Bank - World Development Indicators

Foreign trade in figures

In 2006/2007 the structural trade deficit which is characteristic of Australia's foreign trade was reduced and reached EUR6.5 billion (1.2% of GDP). The rise in exports did not compensate for ever increasing imports stimulated by a strong Australian dollar. In a context of continuous growth and in spite of the healthy state of exports, the deterioration of the current account balance and the structural deficit of the balance of trade remain weak points in the Australian economy.
It is coming to depend more and more on the Asian economies and the price of raw materials. Australia is not a country with well developed foreign trade, nor is it very integrated in globalization. It must improve its infrastructures, to find a solution to the bottlenecks which have restricted exports for a long time, and to allow it to integrate world trade better.

Foreign trade indicators	2002	2003	2004	2005	2006
Imports of goods (millions USD)	70,527	85,861	105,230	120,383	134,439
Exports of goods (millions USD)	65,014	70,517	87,161	107,011	124,915
Imports of services (millions USD)	18,388	21,940	27,943	30,505	32,265
Exports of services (millions USD)	19,594	23,747	28,485	31,047	33,014
Imports of goods and services (annual % change)	13.1	12.7	12.2	n.c.	n.c.
Exports of goods and services (annual % change)	-0.8	1.4	2.7	n.c.	n.c.
Imports of goods and services (in % of GDP)	21.4	20.0	21.2	n.c.	n.c.
Exports of goods and services (in % of GDP)	19.1	17.3	18.4	n.c.	n.c.
Trade Balance (millions USD)	-5,514	-15,344	-18,069	-13,372	-9,524
Trade Balance (including service) (millions USD)	-4,308	-13,538	-17,526	-12,830	-8,775
Current Account (millions USD)	-15,824	-28,645	-38,781	-40,900	-40,633
Current Account (in % of GDP)	-3.7	-5.3	-5.9	-5.6	-5.3
Foreign trade (in % of GDP)	40.5	37.3	39.6	n.c.	n.c.

Source: World Bank - World Development Indicators

Main partner countries

Main customers (% of exports)	2006
Japan	19.8%
China	12.5%
South Korea	7.5%
United States	6.2%
New-Zealand	5.5%

Main suppliers (% of imports)	2006
China	14.5%
United States	14.0%
Japan	9.8%
Singapore	6.1%
Germany	5.1%

Source: 2006

Main products

Main exports (% of exports)	2006
Mineral fuels, mineral oils	24.0%
Ores, slag and ash	15.4%
Natural or cultured pearls, precious or semi-precious stones	6.2%
Meat	4.3%

Main imports (% of imports)	2006
Machinery and mechanical appliances	16.3%
Mineral fuels, mineral oils	13.2%
Vehicles other than railway or tramway	12.5%
Electrical machinery and equipment	10.9%
Natural or cultured pearls, precious or semi-precious stones	4.1%

Source: 2006

To see more products: More imports (Intracen Data)
More exports (Intracen Data)

Sources of economic information

Ministries: Department of Foreign Affairs and Trade (DFAT)Australian Government Agriculture Portal Minister for Finance and Deregulation Ministers for Innovation, Industry, Science and Research Australian Bureau of Agricultural and Resource Economics (ABARE)
Statistical Office: Australian Bureau of Statistics
Central Bank: Reserve Bank of Australia
Stock Exchange: Australian Stock Exchange
Online newspapers: The Australian Financial Review
Business Review Weekly
The Australian
Sydney Morning Herald
The Age
The Daily Telegraph
Search Engines: Anzwers
Ninemsn
Web Search
Wombat

Political outline

Executive Power: Australia an independent nation, belonging to the Commonwealth, and recognizes the British Monarch as its sovereign. Queen Elizabeth II is the Head of State. She is represented in Australia by a Governor General who has a symbolic function (he is appointed by her on the recommendation of the Prime Minister). The Prime Minister is the head of the government. He runs State business. It is the Prime Minister who appoints the Cabinet. The Prime Minister is the leader of the party that wins the majority of seats in the House of Representatives at the General Election.
Legislative Power: The parliament is composed of the Senate and the House of Representatives. Senators are elected for a 6 year term, and the members of the House of Representatives for a 3 year term minimum. The Prime Minister and the Cabinet are responsible to parliament, of which they must be elected members.
Main political parties: A bipartisan system with:
- The Liberal Party (conservative, centre-right, neoliberal);
- The Australian Labor Party (social democrat, centre-left).
Also : The Greens, and the National Party (conservative) in coalition with the Liberal Party.
Current political leaders: Prime Minister: Kevin RUDD (elected in December 2007) – Labor Party
Governor General: Michael JEFFERY (since August 2003)
Next election dates: Senate : latest June 2011
Representatives : latest December 2010