Australia: Economic and Political Outline

Economic Overview

Australia is the world’s thirteenth largest economic power. After a slowing down due to global recession, in 2010 the Australian economy has been growing again, with an estimated growth rate of 3 % of the GDP. This good economic performance owes to the government’s fiscal policy of incentives, by the increase in household consumption and especially by the continuous Chinese demand which helps exports.

The Australian government’s priorities are to improve the country’s competitiveness, namely with regards to the export competition of Asian countries and to deal with the challenges of its aging population and its environment which is vulnerable to climatic problems (droughts).

Australia is a prosperous country and its per capita GDP is amongst the highest in the world. Despite the recent increase in unemployment rate due to the global economic crisis, it remains consistently low, around 5%.

Main Sectors of Industry

The tertiary sector occupies a dominant position in the Australian economy (more than three-fourths of the GDP), but the agricultural and mining sectors are the most important for its exports. Australia is a vast agricultural country and one of the world's main exporters of wool, meat, wheat and cotton. The country is overflowing with mineral and energy raw materials, the export of which ensures it substantial revenues. Australia is among the top 10 producers and exporters of most mineral ores. It has the world's greatest reserves of numerous strategic resources such as uranium, of which it has 40% of the world's proven reserves.

Traditionally Australia is a finished goods importer. Its industrialization is fairly recent, a fact which explains the small scale of its manufacturing sector, which only employs 10% of the active population. The manufacturing industry is built up around the food industry (approximately a fifth of the workforce), machinery and equipment (around 20%), metal processing and metal goods (nearly 20%) and the chemical-petrochemical industry (slightly more than 10%).

Source: World Bank - Last Available Data.

Indicator of Economic Freedom

Score:

82.5/100

Position:

Free

World Rank:

3/179

Regional Rank:

3/38

Distribution of Economic freedom in the world
Source: 2011 Index of Economic freedom, Heritage Foundation

Sources of General Economic Information

Ministries

Department of Foreign Affairs and Trade (DFAT)
Australian Government Agriculture Portal
Minister for Finance and Deregulation
Ministers for Innovation, Industry, Science and Research
Australian Bureau of Agricultural and Resource Economics (ABARE)

Statistical Office

Australian Bureau of Statistics

Central Bank

Reserve Bank of Australia

Stock Exchange

Australian Stock Exchange

Other Useful Resources

Business Council of Australia (BCA)
National Office for the Information Economy (NOIE)

Main Online Newspapers

The Australian Financial Review
Business Review Weekly
The Australian
Sydney Morning Herald
The Age
The Daily Telegraph

Political Outline

Type of State

Commonwealth of Australia. Federal State of 6 States and 2 Territories based on a parliamentary democracy.

Executive Power

Australia an independent nation, belonging to the Commonwealth, and recognizes the British Monarch as its sovereign. Queen Elizabeth II is the Head of State. She is represented in Australia by a Governor General who has a symbolic function (he is appointed by her on the recommendation of the Prime Minister). The Prime Minister is the head of the government. He runs State business. It is the Prime Minister who appoints the Cabinet. The Prime Minister is the leader of the party that wins the majority of seats in the House of Representatives at the General Election.

Legislative Power

The parliament is composed of the Senate and the House of Representatives. Senators are elected for a 6 year term, and the members of the House of Representatives for a 3 year term minimum. The Prime Minister and the Cabinet are responsible to parliament, of which they must be elected members.

Main Political Parties

A bipartisan system with:
- The Liberal Party (conservative, centre-right, neoliberal);
- The Australian Labor Party (social democrat, centre-left).
Also : The Greens, and the National Party (conservative) in coalition with the Liberal Party.

Current Political Leaders

Prime Minister: Kevin RUDD (elected in December 2007) – Labor Party
Governor General: Quentin Alice Louise BRYCE (since 5 September 2008)

Next Election Dates

Senate : June 2011
Representatives : December 2013

Indicator of Freedom of the Press

World Rank:

30/179

Evolution:

12 places down compared to 2010

Source: Worldwide Press Freedom Index 2010, Reporters Without Borders

Indicator of Political Freedom

Ranking:

Free

Political Freedom:

1/7

Civil Liberties:

1/7

Map of freedom 2010
Source: Freedom House