Australia

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Economic and political outline

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

Economic indicators

Australian was not spared from the 2008-2009 global economic crisis: six of its primary trade partners were in recession in 2008-2009. Its unemployment rate, which remains low, did all the same reach 5.2% in June 2009. The country also shows a deficit in the public accounts and at one point, its currency was weakened against the Euro and the American dollar.
Nevertheless, Australia has avoided the recession, thanks to its organized and healthy solid banking system, a very active government with "anti-crisis" measures, the "Chinese outlet", the country's main natural resource customer, and a currency which became stronger from September 2009, recovering to its previous pre-crisis level and thus reducing the price of its imports.
However, the global crisis brought to an end an exceptional period of growth for a developed country (with an average annual rate of 3.6% since 1992 due to growing domestic demand and a significant and regular increase in exports). Inflation should drop during 2010 and household consumption should be maintained in the coming years.
Australia currently has two main challenges: its aging population and the increase in value of its currency which weakens its competitiveness, especially in relation to other Asian countries.

Main indicators	2006	2007	2008	2009	2010
GDP (billions USD)	755.21	909.74	1,010.70	755.07e	744.27
GDP (constant prices, annual % change)	2.8	4.0	2.1	-1.4e	0.6
GDP per capita (USD)	36,413	43,199	47,400	34,974	34,049
General government balance (in % of GDP)	2.1	1.6	0.1	-2.3	-3.5e
Inflation rate (%)	3.5	2.3	4.4	1.6e	1.3e
Unemployment rate (% of the labor force)	4.8	4.4	4.3	6.8	7.8
Current Account (billions USD)	-40.38	-57.13	-42.83	-43.93e	-39.74e
Current Account (in % of GDP)	-5.3	-6.3	-4.2	-5.8e	-5.3e

Source: IMF - World Economic Outlook Database

Note: (e) Estimated data

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 ensures it substantial revenue. Australia is in 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 why its manufacturing sector is small and 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 chemistry-petrochemical industry (slightly more than 10%).
The tertiary sector occupies a dominant position in the Australian economy (more than three-fourth of the GDP).

Breakdown of economic activity by sector	Agriculture	Industry	Services
Employment by sector (in % of total employment)	3.6	21.1	75.0
Value added (in % of GDP)	2.4	29.0	68.6
Value added (annual % change)	-17.7	4.2	4.0

- last available data.

Monetary indicators	2004	2005	2006	2007	2008
Australian Dollar (AUD) - Average annual exchange rate for 1 USD	1.36	1.31	1.33	1.20	1.19

Source: World Bank - World Development Indicators

Indicator of economic freedom

Score:: 82.6/100
Position:: free
World Rank:: 3 out of 179
Regional Rank:: 3 out of 42

Distribution of Economic freedom in the world
Source: 2008 Index of Economic freedom, Heritage Foundation

Country risk

See the country risk analysis provided by Ducroire.

Foreign trade in figures

Australia's external trade is characterized by a structural trade deficit. The increase in exports has not compensated for the high imports which are stimulated by a strong Australian dollar. In terms of continuous growth, and despite healthy exports, the deterioration of the current account balance and of the structural deficit are still the Australian economy's weak points.
The country is becoming more and more dependent on Asian economies and the price of raw materials. Australian foreign trade is not well developed, a fact which reflects the country's relatively weak globalization integration. Australia must improve its infrastructures in order to redress the bottlenecks that have been restricting exports for a long time, so as to allow it to better integrate in global trade. The country's main trade partners are Southeast Asia, the United States and the European Union.

Foreign trade indicators	2003	2004	2005	2006	2007
Imports of goods (millions USD)	85,861	105,230	120,383	134,509	160,205
Exports of goods (millions USD)	70,522	87,166	107,011	124,913	142,435
Imports of services (millions USD)	21,940	27,943	30,505	32,219	39,252
Exports of services (millions USD)	23,747	28,485	31,047	33,088	40,437
Imports of goods and services (annual % change)	13.1	13.0	12.1	7.2	9.2
Exports of goods and services (annual % change)	-0.4	2.1	3.1	2.2	3.8
Imports of goods and services (in % of GDP)	21.5	20.1	21.2	21.8	21.8
Exports of goods and services (in % of GDP)	19.4	17.5	18.7	20.3	20.6
Trade Balance (millions USD)	-15,339	-18,064	-13,372	-9,596	-17,770
Trade Balance (including service) (millions USD)	-13,532	-17,521	-12,830	-8,727	-16,585
Foreign trade (in % of GDP)	40.9	37.6	39.9	42.1	42.4

Source: World Bank

Main partner countries

Main customers (% of exports)	2008
Japan	22.8%
China	14.6%
South Korea	8.3%
India	6.1%
United States	5.4%
New-Zealand	4.2%
United Kingdom	4.2%
Singapore	2.8%
Thailand	2.4%
Indonesia	1.9%
Malaysia	1.8%
United Arab Emirates	1.8%
Netherlands	1.6%
Hong Kong	1.4%
Saudi Arabia	1.1%
South Africa	1.1%
Germany	0.8%
France	0.8%
Italy	0.8%
Vietnam	0.7%
See more countries	42.8%

Main suppliers (% of imports)	2008
China	15.6%
United States	12.0%
Japan	9.0%
Singapore	7.2%
Germany	5.0%
Thailand	4.5%
United Kingdom	4.4%
Malaysia	4.0%
New-Zealand	3.4%
South Korea	2.9%
Italy	2.4%
Indonesia	2.3%
Vietnam	2.3%
France	2.2%
Papua New Guinea	1.3%
Canada	1.2%
Sweden	1.2%
United Arab Emirates	1.0%
Switzerland	1.0%
Ireland	1.0%
See more countries	51.2%

Source: Comtrade

Main products

Main exports (% of exports)	2008
Mineral fuels, mineral oils and products of their...Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes	31.9%
Ores, slag and ashOres, slag and ash	18.5%
Natural or cultured pearls, precious or...Natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad with precious metal, and articles thereof; imitation jewellery; coin	6.9%
Meat and edible meat offalMeat and edible meat offal	3.2%
Inorganic chemicals; organic or inorganic...Inorganic chemicals; organic or inorganic compounds of precious metals, of rare-earth metals, of radioactive elements or of isotopes	3.2%
Aluminium and articles thereofAluminium and articles thereof	2.8%
Nuclear reactors, boilers, machinery and...Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof	2.7%
CerealsCereals	2.3%
Vehicles other than railway or tramway...Vehicles other than railway or tramway rolling-stock, and parts and accessories thereof	2.2%
Pharmaceutical productsPharmaceutical products	1.8%
Copper and articles thereofCopper and articles thereof	1.7%
Electrical machinery and equipment and parts...Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles	1.4%
Optical, photographic, cinematographic, measuring,...Optical, photographic, cinematographic, measuring, checking, precision, medical or surgical instruments and apparatus; parts and accessories thereof	1.3%
Dairy produce; birds' eggs; natural honey; edible...Dairy produce; birds' eggs; natural honey; edible products of animal origin, not elsewhere specified or included	1.2%
Beverages, spirits and vinegarBeverages, spirits and vinegar	1.2%
Wool, fine or coarse animal hair; horsehair yarn...Wool, fine or coarse animal hair; horsehair yarn and woven fabric	1.0%
Iron and steelIron and steel	1.0%
Wood and articles of wood; wood charcoalWood and articles of wood; wood charcoal	0.7%
Lead and articles thereofLead and articles thereof	0.5%
Live animalsLive animals	0.5%
Oil seeds and oleaginous fruits; miscellaneous...Oil seeds and oleaginous fruits; miscellaneous grains, seeds and fruit; industrial or medicinal plants; straw and fodder	0.5%
Plastics and articles thereofPlastics and articles thereof	0.5%
Zinc and articles thereofZinc and articles thereof	0.5%
Nickel and articles thereofNickel and articles thereof	0.5%
Raw hides and skins (other than furskins) and...Raw hides and skins (other than furskins) and leather	0.5%
Fish and crustaceans, molluscs and other aquatic...Fish and crustaceans, molluscs and other aquatic invertebrates	0.5%
Aircraft, spacecraft, and parts thereofAircraft, spacecraft, and parts thereof	0.5%
Articles of iron or steelArticles of iron or steel	0.4%
Products of the milling industry; malt; starches;...Products of the milling industry; malt; starches; inulin; wheat gluten	0.4%
Paper and paperboard; articles of paper pulp, of...Paper and paperboard; articles of paper pulp, of paper or of paperboard	0.3%
Animal or vegetable fats and oils and their...Animal or vegetable fats and oils and their cleavage products; prepared edible fats; animal or vegetable waxes	0.3%
FertilizersFertilizers	0.3%
Tanning or dyeing extracts; tannins and their...Tanning or dyeing extracts; tannins and their derivatives; dyes, pigments and other colouring matter; paints and varnishes; putty and other mastics; inks	0.3%
Edible vegetables and certain roots and tubersEdible vegetables and certain roots and tubers	0.3%
Edible fruit and nuts; peel of citrus fruits or...Edible fruit and nuts; peel of citrus fruits or melons	0.3%
Residues and waste from the food industries;...Residues and waste from the food industries; prepared animal fodder	0.3%
CottonCotton	0.2%
Miscellaneous chemical productsMiscellaneous chemical products	0.2%
Preparations of cereals, flour, starch or milk;...Preparations of cereals, flour, starch or milk; pastrycooks' products	0.2%
Essential oils and resinoids; perfumery, cosmetic...Essential oils and resinoids; perfumery, cosmetic or toilet preparations	0.2%
Salt; sulphur; earths and stone; plastering...Salt; sulphur; earths and stone; plastering materials, lime and cement	0.2%
Miscellaneous edible preparationsMiscellaneous edible preparations	0.2%
Albuminoidal substances; modified starches; glues;...Albuminoidal substances; modified starches; glues; enzymes	0.2%
Toys, games and sports requisites; parts and...Toys, games and sports requisites; parts and accessories thereof	0.2%
Other base metals; cermets; articles thereofOther base metals; cermets; articles thereof	0.2%
Ships, boats and floating structuresShips, boats and floating structures	0.1%
Printed books, newspapers, pictures and other...Printed books, newspapers, pictures and other products of the printing industry; manuscripts, typescripts and plans	0.1%
Pulp of wood or of other fibrous cellulosic...Pulp of wood or of other fibrous cellulosic material; recovered (waste and scrap) paper or paperboard	0.1%
Rubber and articles thereofRubber and articles thereof	0.1%
Furniture; bedding, mattresses, mattress supports,...Furniture; bedding, mattresses, mattress supports, cushions and similar stuffed furnishings; lamps and lighting fittings, not elsewhere specified or included; illuminated signs, illuminated name-plates and the like; prefabricated buildings	0.1%
Preparations of vegetables, fruit, nuts or other...Preparations of vegetables, fruit, nuts or other parts of plants	0.1%
Tools, implements, cutlery, spoons and forks, of...Tools, implements, cutlery, spoons and forks, of base metal; parts thereof of base metal	0.1%
See more products	36.4%

Main imports (% of imports)	2008
Mineral fuels, mineral oils and products of their...Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes	15.7%
Nuclear reactors, boilers, machinery and...Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof	14.8%
Vehicles other than railway or tramway...Vehicles other than railway or tramway rolling-stock, and parts and accessories thereof	12.0%
Electrical machinery and equipment and parts...Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles	9.6%
Natural or cultured pearls, precious or...Natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad with precious metal, and articles thereof; imitation jewellery; coin	5.2%
Pharmaceutical productsPharmaceutical products	3.5%
Optical, photographic, cinematographic, measuring,...Optical, photographic, cinematographic, measuring, checking, precision, medical or surgical instruments and apparatus; parts and accessories thereof	3.2%
Plastics and articles thereofPlastics and articles thereof	2.3%
Articles of iron or steelArticles of iron or steel	2.2%
Aircraft, spacecraft, and parts thereofAircraft, spacecraft, and parts thereof	1.8%
Iron and steelIron and steel	1.6%
Organic chemicalsOrganic chemicals	1.6%
Furniture; bedding, mattresses, mattress supports,...Furniture; bedding, mattresses, mattress supports, cushions and similar stuffed furnishings; lamps and lighting fittings, not elsewhere specified or included; illuminated signs, illuminated name-plates and the like; prefabricated buildings	1.5%
Rubber and articles thereofRubber and articles thereof	1.3%
Paper and paperboard; articles of paper pulp, of...Paper and paperboard; articles of paper pulp, of paper or of paperboard	1.3%
Toys, games and sports requisites; parts and...Toys, games and sports requisites; parts and accessories thereof	1.2%
Articles of apparel and clothing accessories, not...Articles of apparel and clothing accessories, not knitted or crocheted	1.1%
FertilizersFertilizers	1.0%
Articles of apparel and clothing accessories,...Articles of apparel and clothing accessories, knitted or crocheted	1.0%
Inorganic chemicals; organic or inorganic...Inorganic chemicals; organic or inorganic compounds of precious metals, of rare-earth metals, of radioactive elements or of isotopes	0.8%
Miscellaneous chemical productsMiscellaneous chemical products	0.7%
Beverages, spirits and vinegarBeverages, spirits and vinegar	0.7%
Miscellaneous edible preparationsMiscellaneous edible preparations	0.6%
Aluminium and articles thereofAluminium and articles thereof	0.6%
Ships, boats and floating structuresShips, boats and floating structures	0.6%
Wood and articles of wood; wood charcoalWood and articles of wood; wood charcoal	0.6%
Footwear, gaiters and the like; parts of such...Footwear, gaiters and the like; parts of such articles	0.6%
Essential oils and resinoids; perfumery, cosmetic...Essential oils and resinoids; perfumery, cosmetic or toilet preparations	0.6%
Printed books, newspapers, pictures and other...Printed books, newspapers, pictures and other products of the printing industry; manuscripts, typescripts and plans	0.5%
Copper and articles thereofCopper and articles thereof	0.5%
Other made-up textile articles; sets; worn...Other made-up textile articles; sets; worn clothing and worn textile articles; rags	0.4%
Tools, implements, cutlery, spoons and forks, of...Tools, implements, cutlery, spoons and forks, of base metal; parts thereof of base metal	0.4%
Miscellaneous articles of base metalMiscellaneous articles of base metal	0.4%
Articles of leather; saddlery and harness; travel...Articles of leather; saddlery and harness; travel goods, handbags and similar containers; articles of animal gut (other than silkworm gut)	0.4%
Railway or tramway locomotives, rolling-stock and...Railway or tramway locomotives, rolling-stock and parts thereof; railway or tramway track fixtures and fittings and parts thereof; mechanical (including electro-mechanical) traffic signalling equipment of all kinds	0.4%
Preparations of vegetables, fruit, nuts or other...Preparations of vegetables, fruit, nuts or other parts of plants	0.4%
Glass and glasswareGlass and glassware	0.3%
Ceramic productsCeramic products	0.3%
Tanning or dyeing extracts; tannins and their...Tanning or dyeing extracts; tannins and their derivatives; dyes, pigments and other colouring matter; paints and varnishes; putty and other mastics; inks	0.3%
Preparations of cereals, flour, starch or milk;...Preparations of cereals, flour, starch or milk; pastrycooks' products	0.3%
Dairy produce; birds' eggs; natural honey; edible...Dairy produce; birds' eggs; natural honey; edible products of animal origin, not elsewhere specified or included	0.3%
Salt; sulphur; earths and stone; plastering...Salt; sulphur; earths and stone; plastering materials, lime and cement	0.3%
Animal or vegetable fats and oils and their...Animal or vegetable fats and oils and their cleavage products; prepared edible fats; animal or vegetable waxes	0.3%
Preparations of meat, of fish or of crustaceans,...Preparations of meat, of fish or of crustaceans, molluscs or other aquatic invertebrates	0.3%
Fish and crustaceans, molluscs and other aquatic...Fish and crustaceans, molluscs and other aquatic invertebrates	0.3%
Arms and ammunition; parts and accessories thereofArms and ammunition; parts and accessories thereof	0.3%
Edible fruit and nuts; peel of citrus fruits or...Edible fruit and nuts; peel of citrus fruits or melons	0.3%
Soap, organic surface-active agents, washing...Soap, organic surface-active agents, washing preparations, lubricating preparations, artificial waxes, prepared waxes, polishing or scouring preparations, candles and similar articles, modelling pastes, 'dental waxes' and dental preparations with a basis of plaster	0.3%
Residues and waste from the food industries;...Residues and waste from the food industries; prepared animal fodder	0.3%
Articles of stone, plaster, cement, asbestos, mica...Articles of stone, plaster, cement, asbestos, mica or similar materials	0.2%
Cocoa and cocoa preparationsCocoa and cocoa preparations	0.2%
Ores, slag and ashOres, slag and ash	0.2%
Meat and edible meat offalMeat and edible meat offal	0.2%
Coffee, tea, maté and spicesCoffee, tea, maté and spices	0.2%
Clocks and watches and parts thereofClocks and watches and parts thereof	0.2%
Miscellaneous manufactured articlesMiscellaneous manufactured articles	0.2%
Photographic or cinematographic goodsPhotographic or cinematographic goods	0.2%
Carpets and other textile floor coveringsCarpets and other textile floor coverings	0.1%
Man-made filamentsMan-made filaments	0.1%
Pulp of wood or of other fibrous cellulosic...Pulp of wood or of other fibrous cellulosic material; recovered (waste and scrap) paper or paperboard	0.1%
Albuminoidal substances; modified starches; glues;...Albuminoidal substances; modified starches; glues; enzymes	0.1%
Edible vegetables and certain roots and tubersEdible vegetables and certain roots and tubers	0.1%
See more products	42.6%

Source: Comtrade

See more products: More imports (Intracen Data)
More exports (Intracen Data)

Sources of general 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
Search Engines: Anzwers
Ninemsn
Web Search
Wombat
Economic portals

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: Quentin Alice Louise BRYCE (since 5 September 2008)
Next election dates: Senate : latest June 2011
Representatives : latest December 2010

Indicator of freedom of the press

World Rank:: 28/173
Evolution:: Same rank in relation to 2007

Source: Worldwide Press Freedom Index 2008, Reporters Without Borders

Indicator of political freedom

Ranking:: Free
Political freedom:: 1/7
Civil liberties:: 1/7

Map of freedom 2008
Source: Freedom House

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