Australia, the sixth largest country in the world, is said to be one of the strongest and stablest economies. Australia has a mixed economy, i.e., an economy that supports both free market and state enterprise.
Australia’s Economy
The World Bank has provided the following details about the economy of Australia:
- Gross Domestic Product (2015): 1.62 trillion USD
- GDP per capita: 64,500 USD
- Inflation (CPI): 1.0%
The 2011 Credit Suisse Global Wealth Report showed that Australia has a median wealth of 222,000 US dollars while US has a median wealth of 50,000 US dollars. This means that the average person in Australia is earning more than four times of what a person earns on average in the US. The same report also mentioned that Australia’s wealth has quadrupled over the past decade.
The above figures are enough to substantiate the point of Australia’s stable economy. The mining and service sector contribute the most to the Australia’s Economy. That being said, let us further analyze as to why Australia’s economy is still stable and will be so in the long run as well
Mining Industry
The mining industry is by far one of the greatest contributors to Australia’s economy. It has for a long time corroborated and helped to maintain a stable environment in Australian markets. The British were the first to realize the strength of Australia’s mining industry and initiated the infrastructure projects to support the mining industry.
Quality of Life
Australia was ranked 6th in the Worldwide quality of life index, 2005 published by The Economist. The quality of life index is widely accepted as the true indicator of the average person’s’ life in a country. This index takes into account multiple factors such as GDP per capita, life expectancy, divorce rate, unemployment rate, climate and so on. All of these factors combined together can serve as the real indicator of the welfare of people of a Country.
Export
Australia is one of the few developed countries with a booming export sector. Australia is endowed with a huge amount of natural resources with majority of the land uninhabited. The agriculture sector contributes a lot towards exports. Australia is known to market widely to countries like China, US and Japan. The products exported can range from gold and iron to wheat and live animals. Australia also exports crude petroleum, coal and natural gas.
Tax
Taxation in Australia is transparent and lucid to understand. Other than income tax, excise duty and so on, Australia also uses the Goods and Service Tax that is a conglomeration of most of the indirect taxes on commodities and services. The GST is collected at the point of sale and subsides the overall complications related in the Manufacturing process. GST also brings down the cost of products for consumers and augments the revenue for organisations.
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