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Economic environment
► The Australian economy
| Australia has one of the fastest growing economies in the world. It is among the strongest and most competitive on the planet, ranked 14th by its GDP. The OECD places Australia 4th in the world in terms of competitiveness, and for the availability of skilled workforce in the areas of finance, accounting and management. |
Indeed Australia finds itself in its 17th year of continuous growth, with an annual average GDP of 3.6% over the last ten years, placing it ahead of the majority of other OECD countries, including Canada, the United Kingdom, Germany and Japan.
It has all but eliminated its public debt and it has a low unemployment rate (4.5% at the end of 2007).The health of the Australian economy continues to attract an increasing number of direct foreign investors. Its appeal lies as much in the strength of its performance as its stability and the transparency of its judicial system. The framework for foreign investment is also very liberal.
Australia’s economic growth has created 1.7 million new jobs in the last decade. Salaries have increased by 16.8% in real terms over the same period (GDP per capita= 28,500 EUR). Although a part of this new prosperity can be explained by its large reserves of mineral resources and its trade with rapidly expanding consumer markets (including China, Japan, the Republic of Korea or India), Australia’s emphasis on economic and structural reform is often cited as the key reason behind the continued strength of the economy.
Australia has one of the most open economies in the world, with very few barriers to trade. And with its highly skilled and flexible workforce, complex technology and innovative culture, Australia is also ranked second in the world for its willingness to try new technologies (behind the United States).
Australia has diversified its economy in order to secure its competitiveness. However even if its output of mineral and agricultural products remains significant, in the last 15 years the production of basic conversion industrial goods has doubled and that of advanced conversion industrial products has tripled.
The tertiary sector now represents the biggest part of the Australian economy, at 71% of its GDP. The services sector is not far behind at 68% of GDP. Australia’s agricultural and mining sectors account for 65% of its exports. Service exports account for approximately a fifth of all Australian exports and have increased by 68% in the past 10 years.
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