Australia's GDP has been growing for almost twenty consecutive years

2024 Author: Henry Conors | [email protected]. Last modified: 2024-02-12 02:53

One of the most efficient economies in the world, located on a distant continent. Australia's GDP has been growing for almost twenty years, at an average growth rate of 3.3%, despite the fact that the world has experienced two economic crises during this time. Perhaps because the country is trying to minimize state intervention in the economy and has been pursuing a policy of financial deregulation for a long time.

General information

The country's economy belongs to the post-industrial type, in which the largest share falls on the service sector. It accounts for approximately 68% of Australia's GDP. The second largest is the mining sector, which occupies 10% of GDP, another 9% is occupied by industries related to the extraction of minerals. The state of the economy is largely dependent on the export of mining and agricultural industries. Mineral resources and foodstuffs are exported mainly to East Asian countries.

Expertsthe originality of the Australian economy as a "two-speed economy" is noted. The noted impressive GDP growth in Australia is mainly due to the regions where the mining industry is concentrated, as well as the production and services involved in the processing of extracted resources. Thus, two states (Northern Territory and Western Australia) are the regions that provide the main share in the country's economic growth. Many other states are in recession, including the Capital Territory, Tasmania, New South Wales and Victoria. For example, in 2012, when the Australian economy grew by 2.6% in Victoria, there was a recession and the state government went on a 10% job cut in the public sector.

Some economic indicators

The country's GDP is 1262.34 million US dollars - this is the data of 2017. In terms of GDP, Australia in 2017 was in 14th place, right after Russia. The country is one of the few in the world where this figure has been growing continuously since 1990, after falling by -0.38%. When considering the change in Australia's GDP over the years, it can be noted that the minimum growth during this period was 0.44% in 1991, and the maximum was 5% in 1998. Even in the year of the global financial crisis in 2008, the Australian economy grew by 1.8%. The country's average GDP growth rate is 3.3%.

GDP per capita in the country is higher than in many developed countries such as Holland, Great Britain, Hong Kong. The indicator reached the size of 50795.3dollars last year. According to the same indicator, taking into account the level of purchasing power parity, the country is in 19th place with a GDP per capita (PPP) of 49481.87 US dollars.

Australian exports

In terms of exports, the country ranks 22nd in the world - 195 billion US dollars. The main positions of foreign trade are mineral resources (iron ore, coal briquettes, gold, copper ore, aluminum) and agricultural products (meat, wheat, wool, wine and cheeses). In recent years, countries have received significant benefits due to changing global conditions.

The main buyers are the countries of East Asia - China, Japan and South Korea. Next come India and the US. More than a third of all exports go to China - 65.4 billion US dollars.

Main sectors of the economy

Essential for the successful development of the Australian economy was the policy of economic liberalization and financial deregulation adopted in the early 1980s, which began with the introduction of the Australian dollar instead of the Australian pound. Growth was also supported by large public investments in communications, transport and urban infrastructure. Where British finance also prevailed. The expansion of the economy has attracted significant labor resources from around the world.

The formation of the mining industry and the development of agriculture formed the basis for the successful development of the country. High profit margins in mining, primarily iron ore and coal, and grazinganimal husbandry has attracted significant investment, mainly from the former metropolis. In subsequent years, significant volumes of copper, gold, aluminum and uranium began to be mined in the country. A significant part of Australia's GDP is now produced in the extractive industry and in the field related to servicing the extraction of mineral resources. In addition, the share in GDP of the sphere associated with the maintenance of business services and private property has grown significantly. In total, the service sector accounts for 70% of the country's GDP and 75% of jobs.

Other basic industries

Agriculture produces approximately 12% of Australia's GDP, with wheat, meat and wool occupying significant positions in exports. The most highly profitable types are the production of beef and wheat. There are 135,000 farms and livestock farms in the country.

In recent years, the gas industry and the production of liquefied natural gas have received significant development. Australia has built the world's first floating LNG plant. The planned capacity of the enterprise is approximately 110 thousand barrels of oil equivalent per day, including 3.6 million tons of LNG per year.