Australia: Economy#
Following two decades of continuous growth, low unemployment, contained inflation, very low public debt, and a strong and stable financial system, Australia enters 2016 facing a range of growth constraints, principally driven by a sharp fall in global prices of key export commodities. Demand for resources and energy from Asia and especially China has stalled and sharp drops in current prices have 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 benefited from a dramatic surge in its terms of trade in recent years, although this trend has reversed 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’s free trade agreement (FTA) with China entered into force in 2015, adding to existing FTAs with the Republic of Korea, Japan, 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.
Economic Facts#
| GDP (purchasing power parity) | $1.189 trillion (2016 est.) $1.156 trillion (2015 est.) $1.128 trillion (2014 est.) note: data are in 2016 dollars |
|---|---|
| GDP (official exchange rate) | $1.257 trillion (2015 est.) |
| GDP - real growth rate | 2.9% (2016 est.) 2.4% (2015 est.) 2.7% (2014 est.) |
| GDP - per capita (PPP) | $48,800 (2016 est.) $48,300 (2015 est.) $47,800 (2014 est.) note: data are in 2016 dollars |
| Gross national saving | 21.7% of GDP (2016 est.) 22.1% of GDP (2015 est.) 23.7% of GDP (2014 est.) |
| GDP - composition, by end use | household consumption: 58.5% government consumption: 18.7% investment in fixed capital: 24.3% investment in inventories: 0% exports of goods and services: 19.4% imports of goods and services: -20.9% (2016 est.) |
| GDP - composition, by sector of origin | agriculture: 3.6% industry: 28.2% services: 68.2% (2016 est.) |
| Agriculture - products | wheat, barley, sugarcane, fruits; cattle, sheep, poultry |
| Industries | mining, industrial and transportation equipment, food processing, chemicals, steel |
| Industrial production growth rate | 2% (2016 est.) |
| Labor force | 12.63 million (2016 est.) |
| Labor force - by occupation | agriculture: 3.6% industry: 21.1% services: 75.3% (2009 est.) |
| Unemployment rate | 5.8% (2016 est.) 6.1% (2015 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 | 30.3 (2008) 35.2 (1994) |
| Budget | revenues: $420.5 billion expenditures: $446.4 billion (2016 est.) |
| Taxes and other revenues | 33.5% of GDP (2016 est.) |
| Budget surplus (+) or deficit (-) | -2.1% of GDP (2016 est.) |
| Public debt | 46.1% of GDP (2016 est.) 44.2% of GDP (2015 est.) |
| Fiscal year | 1 July - 30 June |
| Inflation rate (consumer prices) | 1.4% (2016 est.) 1.5% (2015 est.) |
| Central bank discount rate | 3% (28 February 2013) 4.35% (31 December 2010) note: this is the Reserve Bank of Australia's "cash rate target," or policy rate |
| Commercial bank prime lending rate | 5.1% (31 December 2016 est.) 5.58% (31 December 2015 est.) |
| Stock of narrow money | $245.3 billion (31 December 2016 est.) $223.2 billion (31 December 2015 est.) |
| Stock of broad money | $1.661 trillion (31 December 2013 est.) $1.648 trillion (31 December 2012 est.) |
| Stock of domestic credit | $2.158 trillion (31 December 2016 est.) $1.986 trillion (31 December 2015 est.) |
| Market value of publicly traded shares | $1.187 trillion (31 December 2015 est.) $1.289 trillion (31 December 2014 est.) $1.366 trillion (31 December 2013 est.) |
| Current account balance | -$43.85 billion (2016 est.) -$57.98 billion (2015 est.) |
| Exports | $184.3 billion (2016 est.) $188.3 billion (2015 est.) |
| Exports - commodities | coal, iron ore, gold, meat, wool, alumina, wheat, machinery and transport equipment |
| Exports - partners | China 32.2%, Japan 15.9%, South Korea 7.1%, US 5.4%, India 4.2% (2015) |
| Imports | $203.1 billion (2016 est.) $207.7 billion (2015 est.) |
| Imports - commodities | machinery and transport equipment, computers and office machines, telecommunication equipment and parts; crude oil and petroleum products |
| Imports - partners | China 23%, US 11.2%, Japan 7.4%, South Korea 5.5%, Thailand 5.1%, Germany 4.6% (2015) |
| Reserves of foreign exchange and gold | $54.3 billion (31 December 2016 est.) $49.27 billion (31 December 2015 est.) |
| Debt - external | $1.692 trillion (31 December 2016 est.) $1.524 trillion (31 December 2015 est.) |
| Stock of direct foreign investment - at home | $614.5 billion (31 December 2016 est.) $582.6 billion (31 December 2015 est.) |
| Stock of direct foreign investment - abroad | $441.9 billion (31 December 2016 est.) $437.8 billion (31 December 2015 est.) |
| Exchange rates | Australian dollars (AUD) per US dollar - 1.352 (2016 est.) 1.3291 (2015 est.) 1.3291 (2014 est.) 1.1094 (2013 est.) 0.97 (2012 est.) |