Impact Of Globalization On Australian Economy
Economy of Australia
Globalization has largely benefited the Australian economy. Australia has an abundance of natural resources that their population of 23 million people can’t use, so they sell the surplus to other countries that have a demand for the resources, giving Australia a world market of over 6.5 billion people.
The Australian economy has experienced continuous growth and low unemployment, contained inflation, very low public debt, and a strong and stable financial system. By 2012, Australia had experienced more than 20 years of continued economic growth, averaging 3.5% a year. Demand for resources and energy from Asia and especially China has grown rapidly, creating resource investments and growth in commodity exports. The high Australian dollar has hurt the manufacturing sector, while the services sector is the largest part of the …show more content…
In 2011 the Australian economy was the fastest growing advanced economy in the world. The Australian economy is dominated by its service sector, representing 68% of GDP. The mining sector represents 10% of GDP; the “mining-related economy” represents 9% of GDP, with the total mining sector represents 19% of GDP, according to an article by the Sydney Morning Herald. As a result, economic growth and business in Australia is largely dependent on the mining sector, according to BBC News. Australia was affected by the global financial crisis; but not to the same extent as other countries, due to certain factors, such as: high demand from China, stimulus measures by the then Rudd Government, and a buffer of surplus created during the previous Howard Government. Despite high global demand for Australian mineral commodities, export growth has remained flat in comparison to strong import growth. Even though Australia enjoys high commodity prices, economists have warned that structural change is needed in order to increase the size of manufacturing
Globalization has largely benefited the Australian economy. Australia has an abundance of natural resources that their population of 23 million people can’t use, so they sell the surplus to other countries that have a demand for the resources, giving Australia a world market of over 6.5 billion people.
The Australian economy has experienced continuous growth and low unemployment, contained inflation, very low public debt, and a strong and stable financial system. By 2012, Australia had experienced more than 20 years of continued economic growth, averaging 3.5% a year. Demand for resources and energy from Asia and especially China has grown rapidly, creating resource investments and growth in commodity exports. The high Australian dollar has hurt the manufacturing sector, while the services sector is the largest part of the …show more content…
In 2011 the Australian economy was the fastest growing advanced economy in the world. The Australian economy is dominated by its service sector, representing 68% of GDP. The mining sector represents 10% of GDP; the “mining-related economy” represents 9% of GDP, with the total mining sector represents 19% of GDP, according to an article by the Sydney Morning Herald. As a result, economic growth and business in Australia is largely dependent on the mining sector, according to BBC News. Australia was affected by the global financial crisis; but not to the same extent as other countries, due to certain factors, such as: high demand from China, stimulus measures by the then Rudd Government, and a buffer of surplus created during the previous Howard Government. Despite high global demand for Australian mineral commodities, export growth has remained flat in comparison to strong import growth. Even though Australia enjoys high commodity prices, economists have warned that structural change is needed in order to increase the size of manufacturing