| From the point of view of GDP, Australia is now the | | | | continue until 2012. Like in most parts of the world, |
| fourteenth largest economy in the world, with $889 | | | | inflation is rising in Australia too. At the end of 2007, it |
| billion in 2007. The positive reforms the country has | | | | stood at 4.2%. It will probably continue to be above the |
| experienced over the last twenty years have boosted | | | | target of 2%-3%, which had been set by the Bank of |
| it economically, raising the living standards. In the | | | | Australia. This has to with the relation between large |
| 1980’s Australia went through a recession. With the | | | | interest payments and foreign debt. |
| help of strict government policies and growing demand | | | | Australia currently relies on Asia for its economic |
| for commodities, this recession was followed by 16 | | | | stability and well-being, although it has old ties with the |
| years of continuous growth. | | | | US and with Europe. Japan is it’s partner for capital |
| The largest sector in Australia is the services sector, | | | | financing, especially in the field of mining. China is the |
| which, in 2007, comprised seventy two per cent of | | | | main partner of export. Since the mid nineties, |
| GDP. The country takes great profit from the current | | | | Australia's exports have increased with over 50%, |
| commodities demand. Australia exports iron, coal, | | | | from $93 billion to $154 billion, according to the |
| copper, lead, natural gas, diamonds, silver, gold, bauxite, | | | | Australian Bureau of Statistics. More than 250,000 jobs |
| uranium, mineral sands, opals, zinc, meat, grain and | | | | have been created due to exports. |
| wool. The mining and agricultural sectors combined | | | | Recently there has been some instability in the |
| contribute 65% of exports, although they are rather | | | | manufacturing sector. The sector quickly recovered in |
| small sectors. In 2007 alone, Australia exported AU | | | | 2007, contributing to the country’s GDP almost 10%. |
| $216 billion of goods and services and imported AU | | | | The development of Australian economy has been |
| $228 billion, according to the CIA World Factbook. | | | | helped mostly with the support of the government, |
| Australia has the US, Japan and China as main import | | | | which carried economic reforms. The country’s |
| and export partners. | | | | economy is expected to keep growing at least five |
| Australia has an advantageous trade balance. In spite | | | | years from now, raising Australia’s standard of |
| of that, it has an account deficit of 5.8%. According to | | | | living even more. |
| the International Monetary Fund, this current deficit will | | | | |