The Australian Economy by Justin Kelley - HTML preview

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Overview of the Australian Economy

Australia has one of the largest economies in the world, which is fairly strong with a big mining and agriculture sector. This country had fared well throughout the 2008 Financial Crisis because of its Mining Boom, but is now facing a recession as that boom has ended. Australia like most developed nations has a large service sector with this sector making up 69% of Australia's GDP according to the Mundi index. The economic situation of a country is determined by several factors such as demographics and geography. Below is a run down of Australia.

Geography

Population: 23 million (2015)

 Size of Country: 7.7 million Km2

 Population Density: 3 people/Km2

Australia is a very hot and barren country with the centre being desert and the coastline being fertile. The population is mostly on the coast and as a dry country, Australia has to deal with droughts. Since the population is so far spread, costs for transportation and road maintenance is high.

Map of Australia

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Demographics

Median Age: 37.3 years (2015)

 Median Income: AUD$58,000 before tax (May 2015)

Australia's multicultural population is mostly living in urban areas with 4.3 million of them living in Sydney alone. This country also has a problem with an aging population with there being an increasing number of older people. However Australia's problem with an aging population is much less then that of other countries like Japan, Germany and the United States (US). As a population ages, there will be fewer young people to enter the workforce and to support the older people and this will seriously hurt an economy.

Economy

GDP: US$1.45 trillion (2015), which is is lower then the year before, US$1.56 trillion (2014) according to the World Bank Group

 Currency: Australian Dollar (AUD)

 Balance of Trade: -US$3.3 billion (October 2015)

 Australian Dollar to US Dollar Exchange Rate: 0.72 US Dollar (December 2015)

Unemployment Rate: 6% (December 2015)

 Inflation: 2% (December 2015)

 Consumer Price Index (CPI): 108 points (December 2015)

Government Budget

Government Budget Deficit: AUD$44 billion (2015 fiscal year)

National Public Debt: US$417 billion (December 2015)

Debt per Capita (Person): US$17,000 (December 2015)

Debt as a Percentage of GDP: 26% (December 2015)

Industry

Australia largest industries are mining (Mining Boom), agriculture (not as large any more) and property (Due to housing bubble). Manufacturing still plays a role, but has been on a decline since the 1960's and as most Western nations, Australia's economy is mostly based on the service sector. Australia is a major exporter of metals such as gold, silver, natural gas, coal and iron ore and China is its main trading partner. Australia faces recession and falling exports due to China's recession.