The Australian Economy is the world’s 12th most wider and has a GDP of $1.4 trillion in 2016. The country benefits from a fairly low level of public debt. Moreover, the unemployment rate remains below six percent and stable gold prices. It makes Australia one of the most attractive places for investment in the world.
This guest post will cover some basic info about Australia’s economic background. Also, it will cover current trends so that readers can quickly speed on this topic.
The background of Australia
Australian was found in a British penal colony. Slowly, the nation was known as one of the high-class economies in Asia. People of Australia are well educated. Also, folks have an average age of 80 years.
Australia is also rich in natural resources such as coal, iron ore, copper, uranium. Still, it lacks timber resources. As a result, the country depends more on foreign trade for wood products.
The current account balance of Australia has some precise facts. Here exports are more important than imports. The figure is $89 billion annually, or 25% of GDP. It compares favorably to other developed countries.
The category includes those who import goods worth 20-30% of their output each year. In 2016 there was a surplus 14th quarter running. As a result, it led some economists to share positivity about a return to rest in 2017.
Role of Australia in export trade
- Australia has a vital trade surplus with China. There is an annual export of over $85 billion goods. Some of the facts are:
- The demand for Australian oil and gas in Asia rises.
- The boom in resources led to a savings phase. As a result, set-up expenditure grew by 50%. However, this trend has reduced.
- It left scope for more sustainable economic growth from other industries. Those include agriculture, tourism, or services sectors.
- But, an economist of Sydney University says, “The mining capital expenditure bonanza is dead,”
Australia’s resources sector accounts for 29% of its exports and 40% of total GDP. In addition, due to China’s claim for dairy products – it imports over $85 billion worth annually. There is strong demand from other nations, such as Taiwan, Hong Kong, Saudi Arabia, or the United States*.
How Australian Economy support small trades?
One can find millions of small trades in Australia. All those are known as the lifeblood of the local population in the country. These small traders play an active role in keeping the rural town alive. Also, the government of Australia wishes to support these small businesses of the nation.
As a result, we need strong government policies that support their growth. Of course, folks can find job scopes locally. No one can force them to move away from family or friends just because there is no job prospect in thei area.
It’s also important to have a well-functioning set-up like internet access at the regional level. Furthermore, these traders can get online. Also, they can reach clients nationwide, and start exporting goods overseas too!
An expert announced the $23 billion investment in transport set-up. The particular projects already underway include the NorthConnex motorway. Uniquely it links Sydney’s Mascot to New South Wales’ central freight corridor.
How is the Australian Economy in the health care sector doing?
The health care sector of Australia’s Economy is doing pretty well. Australia spends about $US500 billion per year on health care.
Some positive facts in favour of healthcare in Australia
Health care covered by taxes
Residents get healthcare coverage by the public system. Folks make payments via taxes and premiums. The government was highly involved in healthcare. As a result, residents get better quality service than other countries in the world.
Australia has ranked near the top of OECD countries in life expectancy. Data from 2011 shows that, Australian females lived an average of 85 years. Also, males are around 79 years old at birth. It is as per the WHO statistics issued last week.
It was largely due to Australia’s closeness to below-average infant mortality rates. The reason can be low levels of homicide or suicide deaths among older Australians over 65.
Growing digital skills in Australia
According to Ipsos, the COVID 19 pandemic had affected small business traders in Australia massively. Only the traders with online business are safe. More than 85% of the small business owners experienced adverse effects in revenue. It’s all during the pandemic situation. But some companies have an online presence.
Moreover, they have online profiles, their websites for buying and selling, etc. Some of them have tied up with affiliate sites; Only these companies reported a minimal loss in their small business.
Internet infrastructure is vital for stable small-scale businesses. As per the latest update by Ipsos, COVID 19 pandemic has not hit the Australian Economy much. The reason behind it is stable internet connectivity in the country. Also, folks were well versed with an online business.
Ipsos recommends digitalizing the business. It is the only solution to prosper even in a pandemic situation. It will have better chances of survival during any disaster or emergency. Also, networking is a viral phenomenon to keep your business public. It will boost your business not only locally but also globally.
Australia is the country with the 12th largest Economy in the world. It has one of the most developed economies in the Asia-Pacific region and a very high standard of living, ranking first for quality of life. The Australian dollar is second after the US dollar as an international currency. Australia’s main exports are coal, gold, natural gas, wool, and wheat.
Success and Challenges in Australian Economy
There is a fairly large trade deficit of $29.03 billion as imports exceed exports. The Australian government is trying to boost the local manufacturing industry. Luckily, it had some success with some sectors such as car making. But overall manufactured goods make up only about 15% of all Australia’s exports.
Australia has faced economic challenges in recent years, too, including high unemployment rates and low wage growth, which puts pressure on domestic demand and company profitability-
This year, we see signs that things might be changing for the better- our Economy grew by 0.22%. And this trend lies likely to continue into next year. Economists predict GDP will grow at an annual rate of around three percent.
Role of decisive action in saving Australian Economy
If you pay a look at the global comparison, Australia could outperform due to its decisive action. The government of Australia played a vital role in minimizing the negative effect on the country’s economy.
China’s current account surplus in 2014 was equal to 8.2% of GDP. But in 2020, this would be 3.2%. This surplus has been shrinking as the country had to import more goods in response to its slowdown.
In Europe, Turkey and Brazil have relatively low and stable current-account surpluses. But in the US, Germany, Britain, Canada, France, and Italy, these deficits have widened since 2007. But Australia only declines by 2.4% over the GDP figure in the year 2019.
Thus, the effect of the economic downfall was very minimal in the year 2020. With regards to finances in Australia, the country stayed stable just like a rock. The experts also say that Australia’s GDP with regards to the private sector debt ratio is going to be only 49%.
You can also read this blog on South Australian Economy.
Australian economic act despite all of its recent struggles
Australia gets praise for the highest values of living among OECD countries. The nation has higher ranks on many other economic terms. At the academic’s level, it ranks one out of 36. Also, the life span at birth is in the 12th position. The gross domestic product per capita sits at 17th place worldwide.
The Economist Intelligence Unit also ranked Australia as one of the best places to live in 2016. It is due to its healthcare quality. With regards to cost-of-living, Australia ranks 14th. Also, the country is a safe place to stay.