Economy In Australia

Australia has an enviable Western-style capitalist economy, with a per capita GDP on par with the four dominant West European economies. Rising output in the domestic economy has been offsetting the global slump, and business and consumer confidence remains robust. Australia`s emphasis on reforms, low inflation, and growing ties with China are other key factors behind the economy`s strength. The impact of drought, weak foreign demand, and strong import demand pushed the trade deficit up to $14 billion in 2003 and to $11 billion in 2004 from $5 billion in 2002. One other concern is the domestic housing bubble.

Australia has a prosperous, Western-style mixed economy, with a per capita GDP slightly higher than the UK, Germany and France in terms of purchasing power parity. The country was ranked third in the United Nations` 2005 Human Development Index and sixth in The Economist worldwide quality-of-life index 2005. In recent years, the Australian economy has been resilient in the face of global economic downturn. Rising output in the domestic economy has been offsetting the global slump, and business and consumer confidence remains robust. Current areas of concern to some economists include Australia`s high current account deficit and also the high levels of net foreign debt owed by the private sector.

In the 1980s, the Hawke Government started the process of economic reform by floating the Australian dollar in 1983, and deregulating the financial system. Since 1996, the Howard government has continued the process of micro-economic reform, including the partial deregulation of the labour market and the privatisation of state-owned businesses, most notably in the telecommunications industry. Substantial reform of the indirect tax system was implemented in July 2000 with the introduction of a 10% Goods and Services Tax, which has slightly reduced the heavy reliance on personal and company income tax that still characterises Australia`s tax system.


Economy overview

GDP	purchasing power parity - $571.4 billion (2004 est.)
GDP - real growth rate	3% (2004 est.)
GDP - per capita	purchasing power parity - $29,000 (2004 est.)
GDP - composition by sector	agriculture: 3.5% industry: 26.3% services: 70.2% (2004 est.)
Investment gross fixed	24.8% of GDP (2004 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)
Inflation rate consumer prices	2.8% (2004 est.)
Labor force	10.19 million (2004 est.)
Labor force by occupation	agriculture 5%, industry 22%, services 73% (1997 est.)
Unemployment rate	6% (2004 est.)
Budget	revenues: $185 billion expenditures: $181 billion, including capital expenditures of NA (2004 est.)
Public debt	18.2% of GDP (2004 est.)
Agriculture products	wheat, barley, sugarcane, fruits; cattle, sheep, poultry
Industries	mining, industrial and transportation equipment, food processing, chemicals, steel
Industrial production growth rate	-0.1% (2004 est.)
Electricity production	198.2 billion kWh (2001)
Electricity production by source	fossil fuel: 90.8% hydro: 8.3% other: 0.9% (2001) nuclear: 0%
Electricity consumption	184.4 billion kWh (2001)
Electricity exports	0 kWh (2001)
Electricity imports	0 kWh (2001)
Oil production	731,000 bbl/day (2004 est.)
Oil consumption	796,500 bbl/day (2001 est.)
Oil exports	523,400 bbl/day (2001)
Oil imports	530,800 bbl/day (2001)
Oil proved reserves	3.664 billion bbl (1 January 2002)
Natural gas production	33.08 billion cu m (2001 est.)
Natural gas consumption	23.33 billion cu m (2001 est.)
Natural gas exports	9.744 billion cu m (2001 est.)
Natural gas imports	0 cu m (2001 est.)
Natural gas proved reserves	2.407 trillion cu m (1 January 2002)
Current account balance	$-30.14 billion (2004 est.)
Exports	$68.67 billion (2004 est.)
Exports commodities	coal, gold, meat, wool, alumina, iron ore, wheat, machinery and transport equipment
Exports partners	Japan 18.1%, US 8.7%, China 8.4%, South Korea 7.4%, New Zealand 7.4%, UK 6.7% (2003)
Imports	$82.91 billion (2003 est.)
Imports commodities	machinery and transport equipment, computers and office machines, telecommunication equipment and parts; crude oil and petroleum products
Imports partners	US 16%, Japan 12.5%, China 11%, Germany 6.1%, UK 4.2% (2003)
Reserves of foreign exchange gold	$33.26 billion (2004 est.)
Debt external	$233.5 billion (2004 est.)
Economic aid recipient
Currency	Australian dollar (AUD)
Currency code	AUD
Exchange rates	Australian dollars per US dollar - 1.5419 (2003), 1.8406 (2002), 1.9334 (2001), 1.7248 (2000), 1.55 (1999)
Fiscal year	1 July - 30 June