Economy Overview
Australia's abundant and diverse natural resources attract high levels of foreign investment and include extensive reserves of coal, iron ore, copper, gold, natural gas, uranium, and renewable energy sources. A series of major investments, such as the US$40 billion Gorgon Liquid Natural Gas project, will significantly expand the resources sector. Australia also has a large services sector and is a significant exporter of natural resources, energy, and food. Key tenets of Australia's trade policy include support for open trade and the successful culmination of the Doha Round of multilateral trade negotiations, particularly for agriculture and services. The Australian economy grew for 17 consecutive years before the global financial crisis. Subsequently, the former RUDD government introduced a fiscal stimulus package worth over US$50 billion to offset the effect of the slowing world economy, while the Reserve Bank of Australia cut interest rates to historic lows. These policies - and continued demand for commodities, especially from China - helped the Australian economy rebound after just one quarter of negative growth. The economy grew by 1.4% during 2009 - the best performance in the OECD - by 2.5% in 2010, 2.1% in 2011, and 3.3% in 2012. Unemployment, originally expected to reach 8-10%, peaked at 5.7% in late 2009 and fell to 5.2% in 2012. As a result of an improved economy, the budget deficit dropped to 0.8% of GDP in 2012 and the government could return to budget surpluses before 2015. Australia was one of the first advanced economies to raise interest rates, with seven rate hikes between October 2009 and November 2010. The GILLARD government is focused on raising Australia's economic productivity to ensure the sustainability of growth, and continues to manage the symbiotic, but sometimes tense, economic relationship with China. Australia is engaged in the Trans-Pacific Partnership talks and ongoing free trade agreement negotiations with China, Japan, and Korea.
Agriculture Products
wheat, barley, sugarcane, fruits; cattle, sheep, poultry
Industrial Production Growth Rate
-0.1% (2011 est.)country comparison to the world: 148
Labor Force
12.27 million (2012 est.)country comparison to the world: 43
Unemployment Rate
5.2% (2012 est.)country comparison to the world: 51 5.1% (2011 est.)
Population Below Poverty Line
NA%
Household Income or Consumption by Percentage Share
Lowest 10%: 2%
Highest 10%: 25.4% (1994)
Distribution of Family Income Gini Index
30.5 (2006)country comparison to the world: 115 35.2 (1994)
Budget
Revenues: $516.3 billion
Expenditures: $528.3 billion (2012 est.)
Public Debt
26.9% of GDP (2012 est.)country comparison to the world: 119 26.7% of GDP (2011 est.)
Central Bank Discount Rate
4.35% (31 December 2010 est.)country comparison to the world: 100 3.28% (31 December 2009 est.) note: this is the Reserve Bank of Australia's "cash rate target," or policy rate
Commercial Bank Prime Lending Rate
Stock of Narrow Money
$544 billion (31 December 2012 est.)country comparison to the world: 10 $492.3 billion (31 December 2011 est.)
Stock of Broad Money
$1.708 trillion (31 December 2012 est.)country comparison to the world: 12 $1.501 trillion (31 December 2011 est.)
Stock of Domestic Credit
$2.303 trillion (31 December 2012 est.)country comparison to the world: 12 $2.061 trillion (31 December 2011 est.)
Market Value of Publicly Traded Shares
$1.198 trillion (31 December 2011)country comparison to the world: 11 $1.455 trillion (31 December 2010) $1.258 trillion (31 December 2009)
Reserves of Foreign Exchange and Gold
$47.7 billion (31 December 2012 est.)country comparison to the world: 38 $46.83 billion (31 December 2011 est.)
Debt External
$1.466 trillion (31 December 2012 est.)country comparison to the world: 12 $1.367 trillion (31 December 2011 est.)
Stock of Direct Foreign Investment at Home
$598.7 billion (31 December 2012 est.)country comparison to the world: 12 $549 billion (31 December 2011 est.)
Stock of Direct Foreign Investment Abroad
$496.4 billion (31 December 2012 est.)country comparison to the world: 13 $442.6 billion (31 December 2011 est.)
Exchange Rates
Australian dollars (AUD) per US dollar -0.963 (2012 est.) 0.9695 (2011 est.) 1.0902 (2010) 1.2822 (2009) 1.2059 (2008)
