A High-Income, Resource-Rich Market with Growing Global Influence

A High-Income, Resource-Rich Market with Growing Global Influence

A High-Income, Resource-Rich Market with Growing Global Influence

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Australia's economy is one of the world's largest and most stable, characterized by its high-income, mixed-market nature and abundant natural resources. As of 2021, Australia holds the title of the world’s fourteenth-largest economy by nominal terms and the eighteenth-largest by purchasing power parity (PPP). The country’s wealth per adult ranks second globally, following Luxembourg, and its financial assets per capita stand among the top thirteen worldwide.

The Australian workforce consists of approximately 13.5 million people, with a notably low unemployment rate of 3.5% as of June 2022. Despite this economic prosperity, a significant portion of the population, over 13.6%, lives in poverty, with 774,000 children under 15 experiencing relative poverty. The Australian dollar is the national currency, also used by the island states of Kiribati, Nauru, and Tuvalu.

In terms of debt, Australia has a national government debt of approximately $963 billion as of June 2022, which is about 45.1% of its GDP, making it one of the highest in the world. Additionally, Australia’s household debt was ranked as the second-highest globally in 2020, after Switzerland. The country’s housing prices are some of the highest globally, particularly in urban areas like Sydney and Melbourne.

Australia’s economy is heavily driven by the service sector, which accounts for around 71.2% of GDP. The industrial sector follows with 25.3%, while agriculture represents a small but vital portion, contributing 3.6% to GDP. As a global exporter, Australia is the 21st-largest exporter and 24th-largest importer. China is its largest trading partner, absorbing around 40% of its exports and contributing 17.6% of its imports. Other significant markets include Japan, the United States, and South Korea.

Australia enjoys high levels of competitiveness and economic freedom, ranking tenth globally in the Human Development Index in 2022. Its tourism sector is also a key contributor, with 9.5 million international tourists visiting in 2019. Australia was ranked thirteenth in inbound tourism in the Asia-Pacific region in 2019 and seventh in the world for travel and tourism competitiveness in 2021.

In the energy sector, Australia generates a significant portion of its electricity from renewable sources, such as wind, solar, and hydro power. It exceeded its 20% renewable energy target by 2020 and has set a new goal of 82% renewable energy by 2030, with a longer-term target of achieving net-zero emissions by 2050.

Australia’s commitment to science and technology is reflected in its substantial research and development expenditure, totaling $35.6 billion in 2019, or 1.79% of its GDP. The country ranks highly in global innovation, contributing over 4% of the world’s published research. Australia’s achievements in space exploration, technology, and scientific advancements, such as Wi-Fi technology and polymer banknotes, further enhance its global reputation as a leader in innovation.

With a strong economic foundation and ongoing commitment to sustainability and innovation, Australia continues to be a major player on the world stage.