Economic trends
After a slowdown due to the global recession, the Australian economy has been resuming growth since 2010 and a growth of around 3% of GDP is expected to continue in 2012. This good performance is due to the tax incentive policy pursued by the government, to the recovery in household consumption and especially to the continued Chinese demand which boosts exports. Australian has been growth is driven by the mining boom since the 2000s.
There is much to envy the Australian economy: the country's public debt is the lowest in the OECD. The Government remains ready to respond to potential effects of the crisis in the euro area, playing on lower interest rates. Priority is given to the implementation of policies adopted by the Parliament in 2011, including the tax on carbon emissions and the tax on profits in the energy sector. The latter aims to correct imbalances between the mining industry, which is doing very well, and other sectors such as tourism and manufacturing. The goal of a return to a balanced budget for the fiscal year 2012/2013 is likely to be achieved, but a reduction in expenditures is expected. The government also seeks to improve national competitiveness, particularly with regard to export competition from Asian countries, as well as to deal with the challenges of an aging population and an environment vulnerable to problems (drought, floods).
Australia is a prosperous country and its per capita GDP is amongst the highest in the world. Despite the recent increase in unemployment rate due to the global economic crisis, this rate remains consistently low, around 5%.
Main branches of industry
The tertiary sector occupies a dominant position in the Australian economy (more than three-fourths of the GDP), but the agricultural and mining sectors are the most important for its exports. 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, the export of which ensures it substantial revenues. Australia is among the top 10 producers and exporters of most mineral ores. It has the world's greatest reserves of numerous strategic resources such as uranium, of which it has 40% of the world's proven reserves.
Traditionally Australia is a finished goods importer. Its industrialization is fairly recent, a fact which explains the small scale of its manufacturing sector, which only employs 10% of the active population. The manufacturing industry is built up around the food industry (approximately a fifth of the workforce), machinery and equipment (around 20%), metal processing and metal goods (nearly 20%) and the chemical-petrochemical industry (slightly more than 10%).
International trade
Australia is very open to international trade, which represents over 40% of the country's GDP.
The foreign trade of Australia was characterized by a structural trade deficit, but this trend was reversed. Australia recorded a trade surplus due to the increase in export volume (including mining products to China) and rising commodity prices.
Australia is accelerating its integration into the Asia-Pacific area. Its main trading partners are Asian countries (especially China), the United States and the European Union.
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Last updates: May 2012
