What's Australia's GDP?
List of Australian businesspeople
The economy of Australia is one of the most developed, modern market economies in the world and the most productive in South Pacific, with a GDP of approximately US$1.6 trillion. Australia's total wealth is 6.4 trillion dollars. In 2011, it was the 13th largest national economy by nominal GDP. Businesspersons involved in different activities, whether commercial or industrial, for the purpose of generating revenue from a combination of human, financial, and physical capital are listed here.
Economy of Australia
Australia's per-capita GDP is higher than that of the UK, Canada, Germany and France in terms of purchasing power parity. Per Capita GDP (PPP) Australia is ranked 18th in the world (CIA World Factbook 2016). The country was ranked second in the United Nations 2016 Human Development Index and sixth in "The Economist" worldwide quality-of-life index 2005. In 2014, using constant exchange rates, Australia's wealth had grown by 4.4% annually on average since 2007, compared with a 9.2% rate over 2000–2007. Australia's sovereign credit rating is "AAA" for all three major rating agencies, higher than the United States of America.
Economy of Australia
Despite the economic slowdown, in the 2014 Credit Suisse Global Wealth Report, Australia continued to have the second-highest average wealth per adult (US$430,800) and the highest median wealth (US$225,400), with a total wealth of $7.2 trillion. The average level of real assets (US$319,700) was the second-highest in the world after Norway and 60% of gross household assets. The report explained that this partly reflects a large endowment of land and natural resources relative to population, and also high urban real estate prices. Only 6% of Australians had a net worth below US$10,000, compared to 29% in the USA and 70% for the world as a whole. The average debt was 20% of gross assets. The proportion of people with wealth above US$100,000 was the highest in the world (eight times the world average). Australia had 3.8% (1,783,000 people) of the top 1% of global wealth holders while having 0.4% of the world's adult population. The wealth share by Australia's top decile was 51.1% in 2000, 50.7% in 2007, and 51.1% in 2014. In 2016, Australia continued to be the second-wealthiest nation in terms of wealth per adult.
History of Australia
The Australian economy was markedly affected by World War II. Expenditure on war reached 37 per cent of GDP by 1943–44, compared to 4 per cent expenditure in 1939–1940. Total war expenditure was £2,949 million between 1939 and 1945.
Economy of Australia
Inflation has typically been between 2–3% and the pre-GFC cash rate typically ranged between 5–7%, however, partly in response to the end of the mining boom the cash rate has recently been steadily falling, dropping from 4.75% in October 2011 to 1.5% in Aug 2016. The service sector of the economy, including tourism, education and financial services, constitutes 69% of GDP. Australian National University in Canberra also provides a probabilistic interest-rate-setting project for the Australian economy, which is compiled by shadow board members from the ANU academic staff.
Seafood in Australia
Seafood in Australia comes from local and international commercial fisheries, aquaculture and recreational anglers. It is an economically important sector, and along with agriculture and forestry contributed $24,744 million to Australia's GDP in year 2007–2008, out of a total GDP of $1,084,146 million. Commercial fisheries in Commonwealth waters are managed by the Australian Fisheries Management Authority, while commercial and recreational fishing in state waters is managed by various state-level agencies.
Economy of Australia
In the Programme for International Student Assessment, Australia regularly scores among the top five of thirty major developed countries (member countries of the Organisation for Economic Co-operation and Development). In 2018 there were 525,054 international students in Australia, comprising a market of 32,2 billion A$.
Southern Hemisphere
Among the most developed nations in the Southern Hemisphere are Australia, with a nominal GDP per capita of US$51,850 and a Human Development Index of 0.939, the second highest in the world as of 2016. New Zealand is also well developed, with a nominal GDP per capita of US$38,385 and a Human Development Index of 0.915, putting it at #13 in the world in 2016. The least developed nations in the Southern Hemisphere cluster in Africa and Oceania, with Burundi and Mozambique at the lowest ends of the Human Development Index, at 0.404 (#184 in the world) and 0.418 (#181 in the world) respectively. The nominal GDP per capitas of these two countries don't go above US$550 per capita, a tiny fraction of the incomes enjoyed by Australians and New Zealanders.
Australian dollar
Economists posit that commodity prices are the dominant driver of the Australian dollar, and this means changes in exchange rates of the Australian dollar occur in ways opposite to many other currencies. For decades, Australia's balance of trade has depended primarily upon commodity exports such as minerals and agricultural products. This means the Australian dollar varies significantly during the business cycle, rallying during global booms as Australia exports raw materials, and falling during recessions as mineral prices slump or when domestic spending overshadows the export earnings outlook. This movement is in the opposite direction to other reserve currencies, which tend to be stronger during market slumps as traders move value from falling stocks into cash.
GDP deflator
The GDP and GDP deflator are calculated by the Australian Bureau of Statistics.
Poverty in Tanzania
GDP
Tourism in Australia
The Australian Government released the 2020 Tourism Industry Potential on 15 November 2010, and estimates the Australian tourism industry to be worth up to $140 billion in overnight expenditure. This growth will largely be due to key emerging markets, including the China market, which is estimated to be the largest economic contributor to the Australian tourism industry by 2020. The number of Chinese visitors has more than doubled from 2006 to 2012 reaching a peak of 626,400 in 2012 and surpassing for the first time the number of arrivals from the United Kingdom. In 2013, China was Australia's fastest growing tourist market. According to Tourism Australia Managing Director Andrew McEvoy, the Chinese are the highest spending visitors to the country.
Economic history of Australia
With the breakdown of the Bretton Woods system in 1971, Australia converted the traditional peg to a fluctuating rate against the US dollar. In September 1974, Australia valued the dollar against a basket of currencies called the trade weighted index (TWI) in an effort to reduce the fluctuations associated with its tie to the US dollar. The daily TWI valuation was changed in November 1976 to a periodically adjusted valuation. On 12 December 1983, Australia floated the Australian dollar, with the exchange rate reflecting the balance of payments and other market drivers.
Early 1990s recession in Australia
The popularity of Hawke's prime ministership, along with the health of the Hawke-Keating political partnership deteriorated along with the Australian economy and Keating began to position himself for a challenge. The Government promised economic recovery for 1991 and launched a series of asset sales to increase revenue. GDP sank, unemployment rose, revenue collapsed and welfare payments surged.
National fiscal policy response to the Great Recession
In October 2008, the Rudd government implemented a A$10 billion stimulus package with the support of the Senate crossbench. The package included:In February 2009, the Rudd government implemented a A$42 billion stimulus package again with the support of the Senate crossbench. The package included:Australia avoided recession and its growth figures were internationally very high, whilst unemployment remained comparatively low, despite net public sector debt remaining substantially low. It has been disputed as to whether fiscal policy actually helped Australia avoid recession however, with sources citing high NGDP growth, healthy trading partners, a responsible banking industry, no housing collapse, a booming population, and the Australian mining boom.
Economy of Australia
The Australian Securities Exchange in Sydney is the 16th-largest stock exchange in the world in terms of domestic market capitalisation and has the largest interest rate derivatives market in Asia. Some of Australia's large companies include but are not limited to: Wesfarmers, Woolworths, Rio Tinto Group, BHP Billiton, Commonwealth Bank, National Australia Bank, Westpac, ANZ, Macquarie Group, Telstra and Caltex Australia. The currency of Australia and its territories is the Australian dollar which it shares with several Pacific nation states.
Australia
The Hawke Government floated the Australian dollar in 1983 and partially deregulated the financial system. The Howard Government followed with a partial deregulation of the labour market and the further privatisation of state-owned businesses, most notably in the telecommunications industry. The indirect tax system was substantially changed in July 2000 with the introduction of a 10% Goods and Services Tax (GST). In Australia's tax system, personal and company income tax are the main sources of government revenue.
Texas
As of 2017, Texas had a gross state product (GSP) of $1.696 trillion, the second highest in the U.S. Its GSP is greater than the GDPs of Canada, South Korea, Russia and Australia, which are the world's 10th-, 11th-, 12th- and 13th-largest economies, respectively. Texas's economy is the fourth-largest of any country subdivision globally, behind England (as part of the UK), California, and Japan's Kantō region. Its per capita personal income in 2009 was $36,484, ranking 29th in the nation.
List of countries by GDP (nominal)
Gross domestic product (GDP) is the market value of all final goods and services from a nation in a given year. Countries are sorted by nominal GDP estimates from financial and statistical institutions, which are calculated at market or government official exchange rates. Nominal GDP does not take into account differences in the cost of living in different countries, and the results can vary greatly from one year to another based on fluctuations in the exchange rates of the country's currency. Such fluctuations may change a country's ranking from one year to the next, even though they often make little or no difference in the standard of living of its population.
History of Australia
The gold era led to a long period of prosperity, sometimes called "the long boom". This was fed by British investment and the continued growth of the pastoral and mining industries, in addition to the growth of efficient transport by rail, river and sea. By 1891, the sheep population of Australia was estimated at 100 million. Gold production had declined since the 1850s, but in the same year was still worth £5.2 million. Eventually the economic expansion ended; the 1890s were a period of economic depression, felt most strongly in Victoria, and its capital Melbourne.
Australian government debt
The net government debt is gross government debt less its financial assets, which is often expressed as a percentage of Gross Domestic Product (GDP) or debt-to-GDP ratio.
Economy of Australia
The early 1990s recession came swiftly after the Black Monday of October 1987, as a result of a stock collapse of unprecedented size which caused the Dow Jones Industrial Average to fall by 22.6%. This collapse, larger than the stock market crash of 1929, was handled effectively by the global economy and the stock market began to quickly recover. But in North America, the lumbering savings and loans industry was facing decline, which eventually led to a savings and loan crisis which compromised the well-being of millions of US people. The following recession thus impacted the many countries closely linked to the USs, including Australia. Paul Keating, who was prime minister at the time, famously referred to it as "the recession that Australia had to have." During the recession, GDP fell by 1.7%, employment by 3.4% and the unemployment rate rose to 10.8%. However, the recession did assist in reducing long-term inflation rate expectations and Australia has maintained a low inflation environment since the 1990s to the present day.
List of Australian states and territories by gross state product
This is the most recent list of Australian states and territories by gross state product (GSP) and GSP per capita. Also included are the GSP and population growth tables as well as a comparison table showing the surplus/deficit between state final demand (SFD) and GSP for the same financial year. All the data was taken from the Australian Bureau of Statistics website.
Australian government debt
The net government debt was negative (i.e. The Australian government had net positive bond holdings) in the 2006–07-year for the first time in three decades, from an original peak of 18.5% of GDP ($96 billion) in 1995–96. The reduction in net debt is attributable to the consistent budget surpluses in the mid-2000s as well as the privatisation of government assets in the preceding decade.
Housing in Victoria, Australia
As of February 2007, mortgage debt was equivalent to 80% of Australian GDP. By 2009, it had risen to its highest levels of all time in Australian history, around triple the private debt during the Great Depression.
Economy of Australia
The emphasis on exporting commodities rather than manufactures underpinned a significant increase in Australia's terms of trade during the rise in commodity prices since 2000. However, due to a colonial heritage a lot of companies operating in Australia are foreign-owned and as a result, Australia has had persistent current account deficits for over 60 years despite periods of positive net merchandise exports; given the net income outlay between Australia and the rest of the world is always negative. The current account deficit totalled AUD$44.5 billion in 2016 or 2.6% of GDP.
Australia
Australia, officially the Commonwealth of Australia, is a sovereign country comprising the mainland of the Australian continent, the island of Tasmania and numerous smaller islands. It is the largest country in Oceania and the world's sixth-largest country by total area. The neighbouring countries are Papua New Guinea, Indonesia and East Timor to the north; the Solomon Islands and Vanuatu to the north-east; and New Zealand to the south-east. The population of / 1000000 round 0 million is highly urbanised and heavily concentrated on the eastern seaboard. Australia's capital is Canberra, and its largest city is Sydney. The country's other major metropolitan areas are Melbourne, Brisbane, Perth and Adelaide.
Australian Capital Territory
The economic activity of the Australian Capital Territory is heavily concentrated around Canberra. A stable housing market, steady employment and rapid population growth in the 21st century have led to economic prosperity and in 2011 CommSec ranked the ACT as the second best performing economic region in the country. This trend continued into 2016, when the territory was ranked the third best performing out of all of Australia's states and territories. There is a higher proportion of young adults in the region compared with other Australian states or territories. Approximately one-fifth of ACT residents were born outside Australia, mainly in the United Kingdom. Almost one-fifth speak a language other than English at home, the most common being Chinese.
Queensland
Between 1992 and 2002, the growth in the gross state product of Queensland outperformed that of all the other states and territories. In that period Queensland's GDP grew 5.0% each year, while growth in Australia's gross domestic product (GDP) rose on average 3.9% each year. Queensland's contribution to the Australian GDP increased by 10.4% in that period, one of only three states to do so.
History of Australia
Gold rushes and agricultural industries brought prosperity. Autonomous parliamentary democracies began to be established throughout the six British colonies from the mid-19th century. The colonies voted by referendum to unite in a federation in 1901, and modern Australia came into being. Australia fought on the side of Britain in the two world wars and became a long-standing ally of the United States when threatened by Imperial Japan during World War II. Trade with Asia increased and a post-war immigration program received more than 6.5 million migrants from every continent. Supported by immigration of people from more than 200 countries since the end of World War II, the population increased to more than 23 million by 2014, and sustains the world's 12th largest national economy.
Stanley Bruce
As early as 1927 economic indicators were signalling the onset of a recession in Australia. By 1929, the evidence was unavoidable that recession was becoming depression as a resulting of rapidly deteriorating international conditions. In that year, prices for Australian exports fell by nearly a third and GDP had fallen by 10%, with no attendant fall in the cost of living. Australia's debt now stood at £631 million the interest payments on which were equivalent to nearly half of Australia's export receipts, a situation difficult to sustain even in a positive economic climate. Investors and banks recognised the risk and Australia's credit access was rapidly drying up. Bruce's grand economic development plans had increased the national debt significantly yet had delivered only marginal economic expansion in the short term.
Health care in Australia
Australia's health-expenditure–to–GDP ratio (~9.5%) in 2011–12 was slightly above average compared with other OECD countries.
Australian federal budget
In comparison with similar economies, Australia's government spending is relatively low. For the twenty-year period from 1960 to 1980, the growth in spending roughly matched percentages in the much higher populated nations of Japan and the United States.
Economic history of Australia
The global early 1990s recession came swiftly after the Black Monday of October 1987, resulting from a stock collapse of unprecedented size which saw the Dow Jones Industrial Average fall by 22.6%. This collapse, larger than the stock market crash of 1929, was handled effectively by the global economy, and the stock market began to quickly recover. However, in North America, the lumbering savings and loans industry was facing decline which eventually led to a savings and loan crisis which compromised the wellbeing of millions of Americans. The following recession thus impacted the many countries closely linked to the United States, including Australia. Paul Keating, who was Prime Minister at the time, famously referred to it as "the recession that Australia had to have." During the recession, GDP fell by 1.7%, employment by 3.4% and the unemployment rate rose to 10.8%. However, as is typical during recessions, there was a beneficial reduction in inflation.
Sydney
Sydney's nominal gross domestic product was AU$400.9 billion and AU$80,000 per capita in 2015. Its gross domestic product was AU$337 billion in 2013, the largest in Australia. The Financial and Insurance Services industry accounts for 18.1% of gross product and is ahead of Professional Services with 9% and Manufacturing with 7.2%. In addition to Financial Services and Tourism, the Creative and Technology sectors are focus industries for the City of Sydney and represented 9% and 11% of its economic output in 2012.
Economy of Australia
The Graduate Careers Survey 2014 explained, "However, GCA's Beyond Graduation Survey (BGS) indicates that the middle- and longer-term outlook is very positive, with the employment figures for 2010 graduates growing by 14 percentage points three years later." The Beyond Graduation Survey 2013 included 12,384 responses and the Graduate Careers Survey 2014 survey included 113,263 responses ("59.3 per cent of the almost 191,000 Australian resident graduates who were surveyed responded to the AGS.")
Economy of Australia
Dependent upon commodities, the Australian government endeavoured to redevelop the Australian manufacturing sector. This initiative, also known as microeconomic reform, helped Australian manufacturing to grow from 10.1% in 1983–1984 to 17.8% in 2003–2004.
History of Australia (1901–45)
Lyons favoured the tough economic measures of the "Premiers' Plan", pursued an orthodox fiscal policy and refused to accept NSW Premier Jack Lang's proposals to default on overseas debt repayments. According to author Anne Henderson of the Sydney Institute, Lyons held a steadfast belief in the need to balance budgets, lower costs to business and restore confidence and the Lyons period gave Australia stability and eventual growth between the drama of the Depression and the outbreak of the Second World War. A lowering of wages was enforced and industry tariff protections maintained, which together with cheaper raw materials during the 1930s saw a shift from agriculture to manufacturing as the chief employer of the Australian economy – a shift which was consolidated by increased investment by the commonwealth government into defence and armaments manufacture. Lyons saw restoration of Australia's exports as the key to economic recovery. The Lyons government has often been credited with steering recovery from the depression, although just how much of this was owed to their policies remains contentious. Stuart Macintyre also points out that although Australian GDP grew from £386.9 million to £485.9 million between 1931–2 and 1938-9, real domestic product per head of population was still "but a few shillings greater in 1938–39 (£70.12), than it had been in 1920–21 (£70.04).
It's Time (Australian campaign)
Unemployment was 2.5% and inflation was sitting on 6.1%. The Australian Dollar bought 1.93 US Dollars, 362 Yen or 1.97 Pounds Sterling. A general downturn in the western economies of the world, and the rising price of oil were contributing to a poor financial situation for Australia.
2009 Australian federal budget
Labor budgetary policy on taxation is to keep it below the 2007-2008 level of 24.7% of GDP over the medium term. After taking into account regulatory changes to eliminate "tax minimisation" through employee share schemes, taxation receipts come in at 22% of GDP. The government has not indicated whether it will be modifying its target for 2010–2011, in light of the forecast contraction in growth.
History of Australia
Australia was deeply affected by the Great Depression of the 1930s, particularly due to its heavy dependence on exports, especially primary products such as wool and wheat. Exposed by continuous borrowing to fund capital works in the 1920s, the Australian and state governments were "already far from secure in 1927, when most economic indicators took a turn for the worse. Australia's dependence of exports left her extraordinarily vulnerable to world market fluctuations", according to economic historian Geoff Spenceley. Debt by the state of New South Wales accounted for almost half of Australia's accumulated debt by December 1927. The situation caused alarm amongst a few politicians and economists, notably Edward Shann of the University of Western Australia, but most political, union and business leaders were reluctant to admit to serious problems. In 1926, "Australian Finance" magazine described loans as occurring with a "disconcerting frequency" unrivalled in the British Empire: "It may be a loan to pay off maturing loans or a loan to pay the interest on existing loans, or a loan to repay temporary loans from the bankers..." Thus, well before the Wall Street Crash of 1929, the Australian economy was already facing significant difficulties. As the economy slowed in 1927, so did manufacturing and the country slipped into recession as profits slumped and unemployment rose.
Economy of Australia
In calendar year 2015, there were 7.4 million visitor arrivals. Tourism employed 580,800 people in Australia in 2014–15, 5% of the workforce. About 43.7% of persons employed in tourism were part-time. Tourism also contributed 8.0% of Australia's total export earnings in 2010–11.
Economy of Australia
The Australian economy is dominated by its service sector, comprising 61.1% of the GDP and employing 79.2% of the labour force in 2016. East Asia (including ASEAN and Northeast Asia) is a top export destination, accounting for about 64% of exports in 2016. Australia has the eighth-highest total estimated value of natural resources, valued at US$19.9 trillion in 2016. At the height of the mining boom in 2009–10, the total value-added of the mining industry was 8.4% of GDP. Despite the recent decline in the mining sector, the Australian economy has remained resilient and stable and has not experienced a recession since July 1991.
South Australia
South Australia's Gross State Product was A$48.9 billion starting 2004, making it A$32,996 per capita. Exports for 2006 were valued at $9.0bn with imports at $6.2bn. Private Residential Building Approvals experienced 80% growth over the year of 2006.
Australian Business Number
The Australian Business Number (ABN) is a unique identifier issued by the Australian Business Register (ABR) which is operated by the Australian Taxation Office (ATO). The ABN was introduced on 1 July 2000 by John Howard's Liberal government as part of a major tax reform, which included the introduction of a GST.
Australian Greens
In December 2013, Liberal Party Treasurer Joe Hockey secured a deal with the Greens to remove the debt ceiling in response to debt approaching the current limit of $300b, despite opposition from the Labor Party. In December 2015, the Greens struck a deal with the Coalition Government, passing a law requiring multinational private companies with a turnover over $200 million to disclose their tax arrangements and also making it mandatory for multinational companies with a "global" turnover of $1 billion or more to have to prepare "general purpose" financial statements, which disclose greater tax details than previously occurred in Australia. Once more the following year the Coalition Government and the Greens agreed on a permanent 15% tax rate for backpackers, in exchange for a $100 million funding boost to environmental stewardship not-for-profit Landcare.
Economy of New South Wales
NSW has the largest economy in Australia, valued at $558 billion in 2016-17 or about 33% of Australia's GDP. This is one third larger than that of the next State and Sydney alone accounts for almost one quarter of Australia's GDP.
Australian government debt
Net government debt is defined by the International Monetary Fund as ""gross debt minus financial assets corresponding to debt instruments"". Financial assets corresponding to debt instruments include currency and deposits, debt securities and loans. In the context of the budget, general government sector net debt is equal to the sum of deposits held, government securities (at market value), loans and other borrowing, minus the sum of cash and deposits, advances paid and investments, loans and placements. The net debt to GDP ratio over time is influenced by a government surplus/deficit or due to growth of GDP and inflation, as well as movements in the market value of government securities which may in turn be influenced by movements in general interest rates and currency values.
Economy of Australia
From the early 1980s onwards, the Australian economy has undergone intermittent economic liberalisation. In 1983, under prime minister Bob Hawke, but mainly driven by treasurer Paul Keating, the Australian dollar was floated and financial deregulation was undertaken.
Economic history of Australia
This process of economic reform and restructuring continued under the Coalition Government led by John Howard which took power in 1996. The Howard Government established a goods and services tax from 2000, established a national Productivity Commission, and further deregulated labor markets under WorkChoices in 2006. The result of the process of economic reform is that Australia is now one of the most open economies in the world. It was enjoyed over two decades of economic growth, coupled with low inflation and relatively low unemployment.
2013 Australian federal budget
Some columnists questioned whether the forecast revenue would be as high as predicted especially considering the effect of a high Australian dollar. The assumption that Australia's gross domestic product will grow by 5% per year was also questioned. Representatives from the National Welfare Rights Network and the National Council of Single Mothers and their Children criticised the lack of an increase in dole payments, particularly after many single mothers were transferred to Newstart in January.
Sustainable Population Australia
SPA also seeks to highlight what it claims are the negative economic effects of population growth, such as increased housing costs, lower wages and living standards, and opposes the current historically high level of immigration to Australia. Immigration to Australia has averaged around 200,000 per annum over the past decade. It is the highest rate of immigration in the world.
National Australia Bank
Frank Cicutto was CEO of NAB from 1999 to 2004. The Australian economic environment during his leadership was stable and productive after 17 consecutive years of economic growth since 1992, averaging 3.3 per cent per annum.
History of Australia
May 1931 had seen the creation of a new conservative political force, the United Australia Party formed by breakaway members of the Labor Party combining with the Nationalist Party. At Federal elections in December 1931, the United Australia Party, led by former Labor member Joseph Lyons, easily won office. They remained in power until September 1940. The Lyons government has often been credited with steering recovery from the depression, although just how much of this was owed to their policies remains contentious. Stuart Macintyre also points out that although Australian GDP grew from £386.9 million to £485.9 million between 1931–32 and 1938–39, real domestic product per head of population was still "but a few shillings greater in 1938–39 (£70.12), than it had been in 1920–21 (£70.04).
Australia recovered relatively quickly from the financial downturn of 1929–1930, with recovery beginning around 1932. The Prime Minister, Joseph Lyons, favoured the tough economic measures of the Premiers' Plan, pursued an orthodox fiscal policy and refused to accept the proposals of the Premier of New South Wales, Jack Lang, to default on overseas debt repayments. According to author Anne Henderson of the Sydney Institute, Lyons held a steadfast belief in "the need to balance budgets, lower costs to business and restore confidence" and the Lyons period gave Australia "stability and eventual growth" between the drama of the Depression and the outbreak of the Second World War. A lowering of wages was enforced and industry tariff protections maintained, which together with cheaper raw materials during the 1930s saw a shift from agriculture to manufacturing as the chief employer of the Australian economy—a shift which was consolidated by increased investment by the commonwealth government into defence and armaments manufacture. Lyons saw restoration of Australia's exports as the key to economic recovery.
Birth rate
At a time when Australia's unemployment was at a 28-year low of 5.2%, the then Treasurer Peter Costello stated there was opportunity to go lower. With a good economic outlook for Australia, Costello held the view that now was a good time to expand the population, with his famous quote that every family should have three children "one for mum, one for dad and one for the country". Australia's fertility rate reached a peak of 1.95 children per woman in 2010, a 30-year high, although still below replacement rate.
Colin Barnett
Barnett was the sole state premier opposed to Labor Prime Minister Kevin Rudd's key Health reform policy deal at the April 2010 COAG meeting. Barnett at the time led the only Liberal State Government in Australia, while all others states were led by Labor Governments. The reasoning for Barnett's strong opposition towards the reform was because it would require the State Governments to forfeit a proportion of their GST revenue. The Rudd Government's proposal was that 30 per cent of the GST revenue pool was to be dedicated towards the Commonwealth's contribution for hospital services, which had a disproportionate impact on those States receiving a less than per capita share of the GST pool (for Western Australia, this would have resulted in an estimated 64 per cent of GST revenue being forfeit). Barnett had already been angered that Western Australia was given a decreased 7.1 percent amount of the GST revenue (lower than last year's revenue amount of 8.1 percent) while Western Australia is a state that will be heavily relied upon for the nation's economic growth due to its booming resource sector. Western Australia therefore would be heavily dependent on GST revenue to fund major resource sector projects although they would not be supported by GST revenue, thus becoming extensive expenditure for the state.
Australia
Ranked fifth in the Index of Economic Freedom (2017), Australia is the world's twelfth largest economy and has the sixth highest per capita GDP (nominal) at US$56,291. The country was ranked second in the United Nations 2016 Human Development Index. Melbourne reached top spot for the fourth year in a row on "The Economist"'s 2014 list of the world's most liveable cities, followed by Adelaide, Sydney, and Perth in the fifth, seventh, and ninth places respectively. Total government debt in Australia is about A$190 billion—20% of GDP in 2010. Australia has among the highest house prices and some of the highest household debt levels in the world.
Economy of Australia
In 2014–15 mineral extraction in Australia was valued at 212 billion Australian dollars. Of this, Coal represented 45,869 million, oil and natural gas 40,369 million, Iron ore 69,486 million, Gold ore 13,685 million, and other metals 7,903 million.
Timeline of the Great Recession
The banking group BNP Paribas states that Australia is in a risky position with regards to the global financial crisis as foreign liabilities accounted for 60% of the nation's GDP.
Greater Western Sydney
Being the third largest economy in Australia, behind Sydney CBD and Melbourne, the region covers and is one of the fastest growing populations in Australia, with an estimated resident population as at 2017 of 2,288,554. Western Sydney has the most multicultural suburbs in the country with 38% of the population speaking a language other than English at home, and up to 90% in some suburbs. Containing about 9% of Australia’s population and 44% of Sydney’s population, the people of GWS are predominantly of a working class background, with major employment in the heavy industries and vocational trade.
Economy of Australia
In the late 19th century, Australia's economic strength relative to the rest of the world was reflected in its GDP. In 1870, Australia had the highest GDP per capita in the world due to economic growth fuelled by its natural resources. However, as Australia's population grew rapidly over the 20th century, its GDP per capita dropped relative to countries such as the US and Norway. However, the Australian economy has been performing nominally better than other economies of the OECD and has supported economic growth for over 20 consecutive years. According to the Reserve Bank of Australia, Australian per capita GDP growth is higher than that of New Zealand, US, Canada and The Netherlands. The past performance of the Australian economy has been heavily influenced by US, Japanese and Chinese economic growth.
Australia
Australia was the only advanced economy not to experience a recession due to the global financial downturn in 2008–2009. However, the economies of six of Australia's major trading partners have been in recession, which in turn has affected Australia, significantly hampering its economic growth in recent years. From 2012 to early 2013, Australia's national economy grew, but some non-mining states and Australia's non-mining economy experienced a recession.
Australia
A wealthy country, Australia has a market economy, a high GDP per capita, and a relatively low rate of poverty. In terms of average wealth, Australia ranked second in the world after Switzerland from 2013 until 2018. In 2018, Australia overtook Switzerland and become the country with the highest average wealth. Australia's poverty rate increased from 10.2% to 11.8%, from 2000/01 to 2013. It was identified by the Credit Suisse Research Institute as the nation with the highest median wealth in the world and the second-highest average wealth per adult in 2013.
Australia
The Australian dollar is the currency for the nation, including Christmas Island, Cocos (Keeling) Islands, and Norfolk Island, as well as the independent Pacific Island states of Kiribati, Nauru, and Tuvalu. With the 2006 merger of the Australian Stock Exchange and the Sydney Futures Exchange, the Australian Securities Exchange became the ninth largest in the world.
Westlink M7
By the late 1990s and first decade of the 21st century Western Sydney had become the third biggest producer of Australia's GDP, after the Sydney CBD and Melbourne. The growth of industrial and residential areas brought about a massive increase in traffic on its local roads. This led to the planning of the Western Sydney Orbital which, among its original purposes, was to serve the stillborn second international airport at Badgerys Creek.
Australian dollar
In 2016, the Australian dollar was the fifth most traded currency in the world, accounting for 6.9% of the world's daily share (down from 8.6% in 2013). It trades in the world foreign exchange markets behind the US dollar, the euro, the yen and the pound sterling. The Australian dollar is popular with currency traders, because of the comparatively high interest rates in Australia, the relative freedom of the foreign exchange market from government intervention, the general stability of Australia's economy and political system, and the prevailing view that the Australian dollar offers diversification benefits in a portfolio containing the major world currencies, especially because of its greater exposure to Asian economies and the commodities cycle. The currency is commonly referred to by foreign-exchange traders as the "Aussie dollar".
Economy of New Zealand
Fortunately for New Zealand, the recession was relatively shallow compared to many other nations in the OECD, it was sixth least affected out of the 34 member
nations with negative real GDP growth totaling 3.5%. In 2009 the economy picked up, led by strong demand from major trading partners Australia and China, and historically high prices for New Zealand's dairy and log exports. In 2010 the GDP grew by a modest 1.6%, but over the next couple of years economic activity continued to improve, driven by the rebuild in Canterbury after the Christchurch earthquakes and recovery in domestic demand. Through 2011, global conditions deteriorated and the terms of trade eased off their 2011 peak, continuing to moderate until September 2012. Since then, commodity prices have rebounded strongly, with strong demand from China and the international situation improving. Commodity prices have been at record highs in recent quarters and remain elevated. High commodity prices are expected to provide a considerable boost to nominal GDP growth in the near term.
Australian dollar
The Australian dollar is a reserve currency and one of the most traded currencies in the world. Other factors in its popularity include a relative lack of central bank intervention, and general stability of the Australian economy and government. In January 2011 at the World Economic Forum in Davos, Switzerland, Alexey Ulyukaev announced that the Central Bank of Russia would begin keeping Australian dollar reserves.
John Stone (Australian politician)
Despite holding what were seen by some to hold neoliberal economic views, Stone initially opposed the decision in December 1983 to float the Australian dollar, and consistently deplored a consumption tax. Indeed, he had repeatedly denounced the GST (and then Treasurer Peter Costello) in print.
History of Australia since 1945
Following two and half decades of economic reform and amidst booming trade with Asia, Australia—in stark contrast to most other Western nations—avoided recession following the 2008 collapse of financial markets. Following the 2010 election, the Gillard Government entered an alliance with the Australian Greens and was destabilized by breaking an election promise not to introduce a carbon tax, by leadership rivalry and by lacking the numbers to push some controversial legislation through the Parliament. Nevertheless, the cross-bench alliance continued to operate and though facing declining poll support and firm opposition from the Liberal-National Coalition, in October the government successfully passed its Clean Energy Bill 2011 aimed to restructure the Australian economy in order to reduce greenhouse gas emissions associated with global warming by increasing costs to industry for carbon emissions. A carbon tax was introduced in Australia on 1 July 2012. Kevin Rudd was reinstated as prime minister in a Labor leadership spill on 27 June 2013.[414] After the 2013 Australian General Election, Rudd lost the role of Prime Minister to Tony Abbott, the Liberal Leader. On 19 December 2013 95% of the Australian military had withdrawn from Afghanistan with the remaining 5% presently training locals in Kabul and Kandahar who are expected to pull out altogether sometime in December 2014, regardless of how the American and British troops' withdraw plays out.
Australia
In the 2016–17 budget, defence spending comprised 2% of GDP, representing the world's 12th largest defence budget. Australia has been involved in UN and regional peacekeeping, disaster relief and armed conflict, including the 2003 invasion of Iraq; it currently has deployed about 2,241 personnel in varying capacities to 12 international operations in areas including Iraq and Afghanistan.
Economy of New South Wales
The economy of New South Wales represents a significant proportion of the Australian economy. The economy was valued at $557.9 billion in 2016-17, representing 33.0% of Australia's total GDP.
Agriculture in Australia
Australia is a major agricultural producer and exporter, with over 325,300 employed in Agriculture, forestry and fishing as of February 2015. Agriculture and its closely related sectors earn $155 billion-a-year for a 12% share of GDP. Australian farmers and graziers own 135,997 farms, covering 61% of Australia's landmass. Approximately 64% of all farms across Australia belong to the state, with a further 23% that are still owned by indigenous groups or tribes. Across the country there is a mix of irrigation and dry-land farming. Australia leads the world with 35 million hectares certified organic, which is 8.8% of Australia's agricultural land. The CSIRO, the federal government agency for scientific research in Australia, has forecast that climate change will cause decreased precipitation over much of Australia and that this will exacerbate existing challenges to water availability and quality for agriculture.
Economic history of World War I
The cost of the war was £377 million, of which 70% was borrowed and the rest came from taxes. Overall, the war had a significantly negative impact on the Australia economy. Real aggregate Gross Domestic Product (GDP) declined by 9.5 percent over the period 1914 to 1920, while the mobilization of personnel resulted in a 6 percent decline in civilian employment. Meanwhile, although population growth continued during the war years, it was only half that of the prewar rate. Per capita incomes also declined sharply, failing by 16 percent.
Secessionism in Western Australia
At the start of the 21st century, Australia was in the middle of a "resources boom", which once again meant that Western Australia's economic contribution to the Australian economy was at a high point. Perceptions of a disproportionately low share of federal resources relative to economic contribution fanned a further wave of secessionist-leaning rhetoric. For example, at the 22 October 2008 Vista Public Lecture, former Western Australian Premier, Richard Court, said that the case for a secessionist movement is only strengthened while the Commonwealth government continues to exploit the State's resource-rich economy and fails to share the prosperity evenly. He argued that, at the time, Western Australia accounted for 35% of the nation's export income yet most of the revenue is used to strengthen the "financial muscle growing in Canberra". The state has approximately 9–10% of the nation's population, generates over 10% of the Goods and Services Tax revenue, but received only 6% of what was being distributed. Court said that if the then-current Federation path continues, then by the year 2020, Western Australia would be receiving only 5% of what would be distributed by the Commonwealth Grants Commission. The former Premier said he was not advocating secession but stressed that the financial imbalance required addressing and that "the time to do so is now".
Economy of Australia
The manufacturing industry in Australia has declined from 30% of GDP in the 1960s to 12% of GDP in 2007.
Economic history of Australia
According to a 2018 study in the "Economic History Review", "Australian GDP per worker grew exceptionally quickly from the 1820s to the 1870s, at a rate about twice that of the US and three times that of Britain." This rapid growth in GDP per worker did not however lead to rising inequality (as has been the case in similar scenarios in other countries) but rather a "revolutionary levelling in incomes up to the 1870s".
Economy of Tasmania
With a gross state product per capita of $AUD 50,237 (2015-2016) Tasmania is rich by world standards. Converted to US dollars on the 3-March-2017 this amount is $US 38,354.21. If Tasmania was a separate country, this would place it as the 21st richest country in the world, on a GDP per capita basis. This statement is based on the International Monetary Fund's ranking in 2015.
Economy of Malaysia
According to a HSBC report in 2012, Malaysia will become the world's 21st largest economy by 2050, with a GDP of $1.2 trillion (Year 2000 dollars) and a GDP per capita of $29,247 (Year 2000 dollars). The report also says "The electronic equipment, petroleum, and liquefied natural gas producer will see a substantial increase in income per capita. Malaysian life expectancy, relatively high level of schooling, and above average fertility rate will help in its rapid expansion." Viktor Shvets, the managing director in Credit Suisse, has said "Malaysia has all the right ingredients to become a developed nation."
Economy of Australia
In the financial year 2014/15, tourism represented 3.0% of Australia's GDP contributing A$47.5 billion to the national economy. Domestic tourism is a significant part of the tourism industry, representing 73% of the total direct tourism GDP.
Bob Hawke
According to political commentator Paul Kelly, "the most influential economic decisions of the 1980s were the floating of the Australian dollar and the deregulation of the financial system". Although the Fraser Government had played a part in the process of financial deregulation by commissioning the 1981 Campbell Report, opposition from Fraser himself had stalled the deregulation process. When the Hawke Government implemented a comprehensive program of financial deregulation and reform, it "transformed economics and politics in Australia". The Australian economy became significantly more integrated with the global economy as a result, which completely transformed its relationship with Asia, Europe and the United States. Both Hawke and Keating would claim the credit for being the driving force behind the success of the Australian Dollar float. That year the economy was seen to be in crisis with a 40% devaluation of the Australian dollar, a marked increase in the current account deficit and the loss of the Federal Government's triple A rating.
Economy of Australia
While Australia's overall national economy grew, some non-mining states and Australia's non-mining economy experienced a recession.
Economy of Australia
According to the 2011 Credit Suisse Global Wealth report, Australia's wealth per adult had quadrupled over the past decade, and its total wealth was US$6.4 trillion. In the report Australia was the second-wealthiest country in the world behind Switzerland based on average wealth per adult, and had the highest median wealth in the world (US$222,000, nearly four times the amount of each US adult) and a proportion of people with wealth above US$100,000 that was eight times the world average. This was attributed to a resilient Australian dollar, property ownership levels and a strong labour market. Compared to the rest of the world, very few Australians had a net worth of less than US$1,000, which was attributed to relatively low credit card and student loan debt. In 2013, Australia was identified by the Credit Suisse as retaining its 2012 position as the nation with the second-highest average wealth per adult (US$403,000); however, the nation's poverty rate was also reported to have increased from 10.2% in 2000–01 to 11.8% at the time of the 2013 report on global wealth.
Economic history of Australia
During the war, Australia's international trade and investment position also began to change. In 1944, Australia became a part of the Bretton Woods system, with major world currencies maintaining fixed exchange rates relative to each other and with the US dollar being pegged to gold. Australia maintained a fixed exchange rate which was effectively pegged to sterling until 1967. The exchange rate between the Australian and British pounds was set at 0.8 GBP (16 shillings sterling; A£1.25 = £1 sterling). However, those new developments did not entirely supplant the traditional relationship with Britain, and Australia remained a part of the "Sterling Zone" until 1967. That reflected Australia's historical ties as well as a view about the stability in value of the British pound, after a brief period of disruption caused by the Second World War, the United Kingdom returned to its position as Australia's main trading partner.
Economy of Australia
All in all over 43,150 deals have been completed national, inbound or outbound Australia. This cumulates to an overall value of US$2,554 billion. There was a strong upward trend between 1989 and 2007. In this peak year almost 3,100 deals took place, which is almost 60% more than in 2017, the current low. Australian companies are particularly investing in the fields of metals and minerals (15% of all deals from Australia into foreign countries). Runner-up is the oil and gas industry with only 6.4%.
Australia
An emphasis on exporting commodities rather than manufactured goods has underpinned a significant increase in Australia's terms of trade since the start of the 21st century, due to rising commodity prices. Australia has a balance of payments that is more than 7% of GDP negative, and has had persistently large current account deficits for more than 50 years. Australia has grown at an average annual rate of 3.6% for over 15 years, in comparison to the OECD annual average of 2.5%.
2008 Western Australian gas crisis
In terms of the macroeconomic impact of the gas crisis, the Committee relied heavily upon State Treasury forecasts provided during its inquiry, including that "the June 2008 disruption in gas supplies... is expected to cost the Western Australian economy around $2 billion in Gross State Product (GSP) terms, with roughly half of this impact in each of the June and September quarters of 2008. This translates to approximately a 0.5 percentage point reduction in estimated GSP growth in 2007-08, from 7.5% at budget-time to 7.0%." The report refers to the Reserve Bank's modelling of the national impact of the crisis, "that the disruption is expected to result in a temporary reduction in national GDP growth of around 0.25 percentage point, spread across the June and September quarters... as national GDP is around a trillion dollars, a 0.25 percentage point represents about $2½ billion, so the Reserve Bank estimate is broadly consistent with that of the Western Australian Treasury."
Economic history of Australia
The new Australian Government, led by Liberal leader Robert Menzies, continued to regulate economic activity, but preferred to manage the economy "indirectly" where possible. More encouragement was given to private industry, but where public enterprise was deemed "necessary" it was retained, and in some cases expanded. The pragmatic approach of the conservative Menzies Government was underlined with the establishment of the Reserve Bank of Australia, the continuance of the mass immigration policy began in 1946, and the signing of a range of new trade agreements with nations outside the British Empire, including West Germany (1955), Japan (1957) and the USSR (1965). In 1955 Australia began exporting coal to Japan, and by 1967 Japan had surpassed Britain as Australia's main market. Symbolically in 1966 Australia abandoned the pound and adopted the Australian Dollar.
Malaysia
In 1991, current Prime Minister of Malaysia, Mahathir Mohamad outlined his ideal in Vision 2020, in which Malaysia would become a self-sufficient industrialised nation by 2020. It will need to develop an endogeous capacity in innovation, however, to reach its goal of becoming a high-income country by 2020. Najib Razak has said Malaysia could attain developed country status much earlier from the actual target in 2020, adding the country has two program concept such as Government Transformation Programme and the Economic Transformation Programme. According to a HSBC report, Malaysia will become the world's 21st largest economy by 2050, with a GDP of $1.2 trillion (Year 2000 dollars) and a GDP per capita of $29,247 (Year 2000 dollars). The report also says "The electronic equipment, petroleum, and liquefied natural gas producer will see a substantial increase in income per capita. Malaysian life expectancy, relatively high level of schooling, and above average fertility rate will help in its rapid expansion". Viktor Shvets, the managing director of Credit Suisse, has said "Malaysia has all the right ingredients to become a developed nation".
In the 1970s, the predominantly mining and agricultural-based economy began a transition towards a more multi-sector economy. Since the 1980s, the industrial sector, with a high level of investment, has led the country's growth. The economy recovered from the 1997 Asian Financial Crisis earlier than neighbouring countries did, and has since recovered to the levels of the pre-crisis era with a GDP per capita of $14,800. Economic inequalities exist between different ethnic groups. The Chinese make up about one-quarter of the population, but accounts for 70 per cent of the country's market capitalisation. Chinese businesses in Malaysia are part of the larger bamboo network, a network of overseas Chinese businesses in the Southeast Asian market sharing common family and cultural ties.
Economy of New Caledonia
The GDP of New Caledonia in 2007 was 8.8 billion US dollars at market exchange rates, the fourth-largest economy in Oceania after Australia, New Zealand, and Hawaii. The GDP per capita was 36,376 US dollars in 2007 (at market exchange rates, not at PPP), lower than in Australia and Hawaii, but higher than in New Zealand.
Economy of Australia
However, as Australia's CAD is almost entirely generated by the private sector, as outlined in Professor John Pitchford's 'Consenting Adults Thesis' in the early 1990s, there is an argument that the CAD is not a significant issue. Historically, Australia has relied on overseas capital to fill the gap between domestic savings and investment, and many of these investment opportunities could not have been pursued if Australia did not have access to foreign savings. This suggests that Australia's apparently low savings level and CAD are not necessarily a significant problem. As long as the investment that is being funded by overseas capital inflow generates sufficient returns to pay for the servicing costs in the future, the increase in foreign liabilities can be viewed as sustainable in the longer term.
Economy of Australia
Note: All data in the table above are seasonally adjusted, except for the Northern Territory and the Australian Capital Territory, which are trend data.
Commonwealth Bank
Australia
Energy policy of Australia
As of 2016, Federal energy policies continue to support the coal mining and natural gas industries through subsidies for fossil fuel use and production as the exports by those industries contribute significantly to the earnings of foreign exchange and government revenues. Australia is one of the most coal-dependent countries in the world. Coal and natural gas, along with oil-based products, are currently the primary sources of Australian energy usage and the coal industry produces approximately 38% of Australia's total greenhouse gas emissions. In 2015 Federal policy reverted to a pro-coal economy with cuts to alternate and renewable energy government offices, targets and subsidies
Economy of Australia
Rich in natural resources, Australia is a major exporter of agricultural products, particularly wheat and wool, minerals such as iron ore and gold, and energy in the forms of liquified natural gas and coal. Although agriculture and natural resources constitute only 3% and 5% of GDP, respectively, they contribute substantially to Australia's export composition. Australia's largest export markets are Japan, China, South Korea, India and the US.
Garnaut Climate Change Review
Professor Garnaut said that the overall cost to the Australian economy of tackling climate change under both the 450ppm and 550ppm scenarios was manageable and in the order of 0.1-0.2 per cent of annual economic growth to 2020.
Fiscal imbalance in Australia
Currently, the funds distributed to achieve HFE are the revenues raised by the Commonwealth from the goods and services tax (GST), currently about AU$50bn a year. The amount collected by the Commonwealth from GST is distributed by the federal Treasurer each year on the basis of advice provided by the Commonwealth Grants Commission.
Carbon pricing in Australia
Australia’s total greenhouse gas emissions increased by 0.3% in the first six months of the Carbon Tax to December 2012 to 276.5 Mt CO2 equiv, while Australia's gross domestic product grew at a rate of 2.5% per annum.
Balance of payments of Australia
Dependent upon commodities, the Australian government has endeavoured to redevelop the Australian manufacturing sector. This initiative, also known as microeconomic reform, has helped Australian manufacturing to grow from 10.1% in 1983-1984 to 17.8% in 2003-2004.
Gross domestic product
GDP does not take into account the value of household and other unpaid work. Some, including Martha Nussbaum, argue that this value should be included in measuring GDP, as household labor is largely a substitute for goods and services that would otherwise be purchased for value. Even under conservative estimates, the value of unpaid labor in Australia has been calculated to be over 50% of the country's GDP. A later study analyzed this value in other countries, with results ranging from a low of about 15% in Canada (using conservative estimates) to high of nearly 70% in the United Kingdom (using more liberal estimates). For the United States, the value was estimated to be between about 20% on the low end to nearly 50% on the high end, depending on the methodology being used. Because many public policies are shaped by GDP calculations and by the related field of national accounts, the non-inclusion of unpaid work in calculating GDP can create distortions in public policy, and some economists have advocated for changes in the way public policies are formed and implemented.
2015 Australian federal budget
The budget is the eighth in a row to contain a deficit. In May 2015, the deficit for FY 2015/16 was forecast to be $35.1 billion (2.1% of GDP). In December 2015, this increased to $37.4 billion.