Economy Overview
Following two decades of continuous growth, low unemployment, contained inflation, very low public debt, and a strong and stable financial system, Australia enters 2015 facing a range of growth constraints, principally driven by a sharp fall in global prices of key export commodities. Although demand for resources and energy from Asia and especially China has grown rapidly, creating a channel for resources investments and growth in commodity exports, sharp drops in current prices have already impacted growth. The services sector is the largest part of the Australian economy, accounting for about 70% of GDP and 75% of jobs. Australia was comparatively unaffected by the global financial crisis as the banking system has remained strong and inflation is under control. Australia has benefited from a dramatic surge in its terms of trade in recent years, although this trend could reverse or slow due to falling global commodity prices. Australia is a significant exporter of natural resources, energy, and food. Australia's abundant and diverse natural resources attract high levels of foreign investment and include extensive reserves of coal, iron, 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 is an open market with minimal restrictions on imports of goods and services. The process of opening up has increased productivity, stimulated growth, and made the economy more flexible and dynamic. Australia plays an active role in the World Trade Organization, APEC, the G20, and other trade forums. Australia entered into free trade agreements (FTAs) with the Republic of Korea and Japan, and concluded an FTA with China, in 2014, adding to existing FTAs with Chile, Malaysia, New Zealand, Singapore, Thailand, and the US, and a regional FTA with ASEAN and New Zealand. Australia continues to negotiate bilateral agreements with India and Indonesia, as well as larger agreements with its Pacific neighbors and the Gulf Cooperation Council countries, and an Asia-wide Regional Comprehensive Economic Partnership that includes the ten ASEAN countries and China, Japan, Korea, New Zealand and India. Australia is also working on the Trans-Pacific Partnership Agreement with Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the US, and Vietnam.
Agriculture Products
wheat, barley, sugarcane, fruits; cattle, sheep, poultry
Industries
mining, industrial and transportation equipment, food processing, chemicals, steel
Industrial Production Growth Rate
2.1% (2014 est.)
Labor Force
12.37 million (2014 est.)
Labor Force by Occupation
Agriculture: 3.6%
Industry: 21.1%
Services: 75% (2009 est.)
Unemployment Rate
5.7% (2013 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
35.2 (1994)
Budget
Revenues: $493.1 billion
Expenditures: $521.3 billion (2014 est.)
Public Debt
33.1% of GDP (2013 est.)
Central Bank Discount Rate
4.35% (31 December 2010)
Commercial Bank Prime Lending Rate
Stock of Narrow Money
$244.1 billion (31 December 2013 est.)
Stock of Broad Money
$1.648 trillion (31 December 2012 est.)
Stock of Domestic Credit
$2.11 trillion (31 December 2013 est.)
Market Value of Publicly Traded Shares
$1.455 trillion (31 December 2010 est.)
Reserves of Foreign Exchange and Gold
$52.8 billion (31 December 2013 est.)
Debt External
$1.459 trillion (31 December 2013 est.)
Stock of Direct Foreign Investment at Home
$593.6 billion (31 December 2013 est.)
Stock of Direct Foreign Investment Abroad
$471.5 billion (31 December 2013 est.)
Exchange Rates
1.0902 (2010)
