In the Australian economy there has been a continuous growth and features a low unemployment, contained inflation, very low public debt, and a strong and stable financial system. Australia had experienced more than 20 years of continued economic growth, averaging 3.5% a year. Australia was comparatively unaffected by the global financial crisis, Australia has benefited from a dramatic surge in its terms of trading in recent years. Australia has the best exporter of natural resources, energy and food. Australia's abundant and diverse natural resources attract high levels of foreign investment and include extensive reserves of coal, iron, copper, gold, natural gas, uranium, and renewable energy sources. Australia has free trade agreements (FTAs) with Chile, Malaysia, New Zealand, Singapore, Thailand, and the US. Demand for resources and energy from Asia and especially China has grown rapidly, creating a channel for resources investments and growth in commodity exports. China became the world's largest exporter. It's changes began when increased autonomy for state enterprises, creation of a diversified banking system, development of stock markets, rapid growth of the private sector, and opening to foreign trade and investment. China in 2012 stood as the second largest economy in the world. The Chinese government faces numerous economic challenges, for example :reducing its high domestic saving rate, sustaining adequate job growth for tens of millions of migrants and new entrants to the work force, reducing corruption and other economic crimes and containing environmental damage and social strife related to the economy's rapid transformation. China is now one of the most rapidly aging countries in the world. The environment is getting worse notably air pollution, soil erosion, and the steady fall of the water table. GDP- Real growth rate
The high Australian dollar has hurt the manufacturing sector, while the services sector is the largest part of the Australian economy, accounting for about 70% of GDP and 75% of jobs. whereas in China the GDP growth consequently slowed to under 8% for 2012. An economic slowdown in Europe contributed to China's, and is expected to further drag Chinese growth in 2013. Debt overhang from the stimulus program, particularly among local governments.
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