Australia Economy Profile 2009

Economy - overview

Australia has an enviable, strong economy with a per capita GDP on par with the four dominant West European economies. Emphasis on reforms, low inflation, a housing market boom, and growing ties with China have been key factors over the course of the economy's 17 solid years of expansion. Robust business and consumer confidence and high export prices for raw materials and agricultural products fueled the economy in recent years, particularly in mining states. Drought, robust import demand, and a strong currency pushed the trade deficit up however, while infrastructure bottlenecks and a tight labor market constrained growth in export volumes and stoked inflation through mid-2008. The unwinding of the yen-based carry trade in late 2008 has contributed to a weakening of the Australian dollar. Tight global liquidity has challenged Australia's banking sector, which relies heavily on international wholesale markets for funding. The economy remains relatively healthy despite falling export commodity prices. The government plans to counter slowing growth in 2009 with fiscal stimulus efforts.

GDP (purchasing power parity)

$800.2 billion (2008 est.)
$782.2 billion (2007 est.)
$752.2 billion (2006 est.)
note: data are in 2008 US dollars

GDP (official exchange rate)

$1.011 trillion (2008 est.)

GDP - real growth rate

2.3% (2008 est.)
4% (2007 est.)
2.8% (2006 est.)

GDP - per capita (PPP)

$38,100 (2008 est.)
$37,700 (2007 est.)
$36,700 (2006 est.)
note: data are in 2008 US dollars

GDP - composition by sector

agriculture: 3.4%
industry: 26.8%
services: 69.8% (2008 est.)

Population below poverty line

NA%

Labor force

11.25 million (2008 est.)

Labor force - by occupation

agriculture: 3.6%
industry: 21.1%
services: 75% (2005 est.)

Unemployment rate

4.2% (2008 est.)
4.4% (2007 est.)

Household income or consumption by percentage share

lowest 10%: 2%
highest 10%: 25.4% (1994)

Distribution of family income - Gini index

30.5 (2006)
35.2 (1994)

Investment (gross fixed)

28.7% of GDP (2008 est.)

Budget

revenues: $350.3 billion
expenditures: $332.4 billion (2008 est.)

Public debt

13.9% of GDP (2008 est.)
17.4% of GDP (2004 est.)
note: the Commonwealth government eliminated its net debt in 2006, but continues a gross debt issue to support the market for risk-free securities

Inflation rate (consumer prices)

4.4% (2008 est.)
2.3% (2007 est.)

Commercial bank prime lending rate

NA% (31 December 2008)
10.02% (31 December 2007)

Stock of money

$NA (31 December 2008)
$298.5 billion (31 December 2007)

Stock of quasi money

$NA (31 December 2008)
$667.2 billion (31 December 2007)

Stock of domestic credit

$NA (31 December 2008)
$1.312 trillion (31 December 2007)

Industries

mining, industrial and transportation equipment, food processing, chemicals, steel

Industrial production growth rate

3% (2008 est.)

Electricity - production

244.2 billion kWh (2007 est.)

Electricity - production by source

fossil fuel: 90.8%
hydro: 8.3%
nuclear: 0%
other: 0.9% (2001)

Electricity - consumption

220 billion kWh (2006 est.)

Electricity - exports

0 kWh (2007 est.)

Electricity - imports

0 kWh (2007 est.)

Oil - production

600,000 bbl/day (2008 est.)

Oil - consumption

966,200 bbl/day (2007 est.)

Oil - imports

615,000 bbl/day (2005)

Oil - exports

337,400 bbl/day (2005)

Oil - proved reserves

1.5 billion bbl (1 January 2008 est.)

Natural gas - production

43.62 billion cu m (2007 est.)

Natural gas - consumption

29.4 billion cu m (2007 est.)

Natural gas - exports

19.91 billion cu m (2007 est.)

Natural gas - imports

5.689 billion cu m (2007 est.)

Natural gas - proved reserves

849.5 billion cu m (1 January 2008 est.)

Current Account Balance

$-41.88 billion (2008 est.)
$-57.68 billion (2007 est.)

Agriculture - products

wheat, barley, sugarcane, fruits, cattle, sheep, poultry

Exports

$190.2 billion (2008 est.)
$142.4 billion (2007 est.)

Exports - commodities

coal, iron ore, gold, meat, wool, alumina, wheat, machinery and transport equipment

Exports - partners

Japan 22.2%, China 14.6%, South Korea 8.2%, India 6.1%, US 5.5%, NZ 4.3%, UK 4.2% (2008)

Imports

$193.3 billion (2008 est.)
$160.2 billion (2007 est.)

Imports - commodities

machinery and transport equipment, computers and office machines, telecommunication equipment and parts; crude oil and petroleum products

Imports - partners

China 15.4%, US 12%, Japan 9.1%, Singapore 7%, Germany 5%, Thailand 4.5%, UK 4.3%, Malaysia 4.1% (2008)

Reserves of foreign exchange and gold

$32.92 billion (31 December 2008 est.)
$26.91 billion (31 December 2007 est.)

Debt - external

$770.3 billion (31 December 2008)
$820.4 billion (31 December 2007)

Stock of direct foreign investment - at home

$366.5 billion (31 December 2008 est.)
$337.5 billion (31 December 2007 est.)

Stock of direct foreign investment - abroad

$312.1 billion (31 December 2008 est.)
$290.4 billion (31 December 2007 est.)

Market value of publicly traded shares

$NA (31 December 2008)
$1.298 trillion (31 December 2007)
$1.096 trillion (31 December 2006)

Economic aid - donor

ODA, $2.123 billion (2006)

Currency (code)

AUD

Currency (code)

Australian dollar (AUD)

Exchange rates

Australian dollars (AUD) per US dollar - 1.2059 (2008 est.), 1.2137 (2007), 1.3285 (2006), 1.3095 (2005), 1.3598 (2004)

Fiscal year

1 July - 30 June