The Australian Economy

• Australia


  • A highly developed country with a mixed economy, the 14th-largest economy by nominal GDP. Known for its long run of uninterrupted GDP growth, avoiding a recession for over 26 years until 2020.
• Australian economyis known for:


  • Service sector dominates, employing 78.8% of the labour force
  • Mining remains significant, contributing to 8.4% of GDP at its peak
  • Major exporter, particularly in goods
• Australian Stock Exchange and Companies

  • The Australian Securities Exchange is the 16th-largest in the world.
  • Major companies include Commonwealth Bank, BHP, and Rio Tinto.
  • The Australian dollar is the national currency.
• Australia's GDP growth rate from 1901–2000

  • Averaged 3.4% annually
  • Saw peaks in the 1920s, 1950s, and 1980s
  • Financial crises occurred in the early 1920s, 1930s, 1970s, and early 1990s
• Economic liberalisation in the 1980s


  1. Australian dollar was floated

  2. Financial deregulation occurred
• Mining industry


  • Key driver of economic growth
  • Attracted significant British capital and immigration for labor
  • Iron ore and gold mining have been particularly profitable
• Taxes in Australia


  • Levied at federal, state, and local levels
  • Federal government's income tax is the main revenue source
  • States have their own taxes, including payroll and land taxes
• Employment trends in Australia

  • Unemployment rates have fluctuated, with recent stability at 3.8%
  • Underemployment remains an issue, affecting economic participation
  • Largest employment sectors include healthcare, retail, and construction
• Australia's mining industry

  • A leading producer of minerals and resources
  • Major companies like Rio Tinto and BHP
  • The closure of the Argyle diamond mine marked the end of an era
• Australia's service sector

  • A major employer, including IT and finance
  • Australia's "big four banks" are among the world's safest
  • Tourism contributes significantly to GDP and employment
• Trade

  Australia's economy is closely tied to East and Southeast Asia

  China is a major investor, particularly in the resource sector

  China is a major trade partner, especially for exports and imports

  Australia has free trade agreements with several nations including the US, China, and Japan

  Trade agreements and foreign investment play key roles in growth
• Economic Histroy: 20th century

  • Australia's GDP growth rate from 1901–2000 averaged 3.4% annually.
  • The economy saw peaks in the 1920s, 1950s, and 1980s.
  • Financial crises occurred in the early 1920s, 1930s, 1970s, and early 1990s.
• Economic Liberilisation

  • In the 1980s, Australia underwent economic liberalisation meaning that the government's restrictions and regulations in an economy were minimised in return for higher involvement of private organisations.
  • The Australian dollar was floated, and financial deregulation occurred.
  • This shift aimed to modernise the Australian economy.
• Global Financial Crisis Response

  • Australia's government stimulus package helped prevent a recession.
  • The World Bank predicted strong GDP growth for Australia post-crisis.
  • The economy showed resilience with a growth rate of 4.3% year-on-year.
• 2020 Recession

  • The COVID-19 pandemic led to Australia's first recession in nearly 30 years.
  • GDP fell 7% in the June 2020 quarter.
  • The recession officially ended in December 2020.
• Economic Indicators

  • Australia's inflation rate is typically between 2 and 3%.
  • The cash rate has been decreasing, reflecting the end of the mining boom.
  • The service sector, including tourism and education, is a major part of GDP.
• Regional Economic Differences

  • Economic growth has varied across states, often tied to mining.
  • Western Australia and the Northern Territory have seen significant growth.
  • Other states have experienced recessions at different times.
• Taxation in Australia

  • Taxes are levied at federal, state, and local levels.
  • The federal government's income tax is the main revenue source.
  • States have their own taxes, including payroll and land taxes.
• Employment Trends

  • Unemployment rates have fluctuated, with recent stability at 3.8%.
  • Underemployment remains an issue, affecting economic participation.
  • The largest employment sectors include healthcare, retail, and construction.
• Education and Employment for Professionals

  • Employment rates for new professionals vary by field.
  • Some sectors, like dentistry and architecture, have seen growth.
  • Others, like computer science and psychology, have faced declines.
• State Unemployment Rankings

  • Unemployment rates differ across states and territories.
  • Tasmania and Northern Territory have higher rates than others.
  • New South Wales and Western Australia have lower unemployment rates.
• Industry and Mining

  • Australia is a leading producer of minerals and resources.
  • The mining sector is significant, with major companies like Rio Tinto and BHP.
  • The closure of the Argyle diamond mine marked the end of an era.
• Manufacturing and Agriculture

  • Manufacturing has declined from 30% of GDP in the 1960s to 12% in 2007.
  • Car manufacturing ended with the closure of Holden and Toyota in 2017.
  • Agriculture, fishing, and forestry remain important, with a focus on exports.
• Services and Finance

  • The service sector, including IT and finance, is a major employer.
  • Australia's "big four banks" are among the world's safest.
  • Tourism contributes significantly to GDP and employment.
• Creativity and Culture

  • Creative industries contribute significantly to the economy.
  • They generate more economic output than some traditional sectors.
  • Australia has a strong media industry with global influence.
• Trade, Debt, and Investment

  • Australia has a history of current account deficits.
  • National debt has increased, with significant foreign investment.
  • China is a major investor, particularly in the resource sector.
• Conclusion: Australia's Economic Landscape


  • Australia's economy is diverse, with strengths in various sectors.
  • Challenges include managing debt, employment, and regional disparities.
  • Trade agreements and foreign investment play key roles in growth.