Australia Economy 2014
In 2014, according to estimates by the International Monetary Fund, Australia was the nineteenth country in the world by size of the economy; based on the goals of the 2012 White Paper, it aspires to be among the top ten by 2025. In terms of GDP, Australia is the first country in Oceania and the second in Southeast Asia, behind Indonesia, while, if the comparison is extended to all of Asia, Australia falls to sixth place, behind China, Japan, India, Indonesia and South Korea. In a similar measure to other advanced economies, more than 70% of GDP Australia is generated by the tertiary sector, particularly financial services, real estate and business services.
Although it has suffered from the effects of the global economic and financial crisis, and despite the enormous damage caused to the national economy by the disastrous floods that have periodically occurred over the last four years, the country has never entered a recession. After a partial slowdown in annual growth in 2011, Australian GDP returned above the 3.5% threshold in 2012 to then settle, even in forecasts, at around 2.5%. However, despite the austerity measures undertaken by the Abbott government, public debt has grown from 20.4% of GDP in 2007 to nearly double (36%) over seven years. For Australia 2014, please check thesciencetutor.org.
However, the increase in unemployment, which even in times of crisis has not reached very worrying levels (5.7% in 2013), has however mainly affected young people (12.2%), many of whom are forced to live longer. than expected with the parents or to give up the idea of buying a house, discouraged by the high prices. The IMF has classified Australia as one of the most expensive countries in the world in terms of housing costs: average house prices in Sydney, for example, increased in 2014 alone by more than 12%; in Melbourne, growth was 4.5%. In Australia, among other things, fear of a housing bubble bursting remains high similar to the one that preceded and triggered the US crisis in 2007. The economic policy of the Australian governments of the last twenty years has been articulated around the objective of liberalizing and deregulating the markets and business activity: this principle has been endorsed by the governments that have succeeded one another in power, but not all promises have been fulfilled. However, the economic reforms allowed the state budget to record a series of surpluses between 1997 and 2008. Even the large deficit caused by the slowdown in the economy after 2009 is now in the process of being reabsorbed, but it is unlikely that there will be a new surplus budget before 2020. Canberra also reduced foreign aid flows by US $ 8.5 billion over the next four years, thereby eroding some of its economic influence in the region.
Australia has significant mineral and energy reserves of high commercial value. It has the largest reserves of lead, iron and zinc in the world, and reserves of bauxite second in the world to Guinea alone. The intention of the current federal government is to make Australia an ‘energy superpower’ and come up with a plan to increase trade. Australia now exports three-fifths of the energy it produces and, according to recent estimates, the share of minerals and energy exports will increase by 60% over the next five years, generating approximately A $ 290 billion annually. In general, the volume of energy exports is growing overall, even if the revenue is not increasing at the same rate due to the low prices of coal and iron.
In 2014, the value of exports exceeded the remarkable figure of 240 billion dollars. As for international trade, since 2009 China has overtaken Japan also as a destination market for Australian goods and today the difference between the two states is more than 17%. The country still spends most of its foreign trade on its Pacific coast regional neighbors, primarily China and the US. Also for this reason Australia aims to play an important role in the main regional organizations of the area.
Chief among these is the Asia-Pacific Economic Conference (APEC), the body that brings together most of the countries and islands of the Pacific Ocean. Australia is a founding member and, in consideration of its growing importance as a forum for coordination and dialogue between the United States and China, Canberra pays particular attention to it.
Although not part of AEAN (the Association of Southeast Asian Nations), Australia participates in the regional forum held annually by the organization as the first dialogue partner and in 2009 entered into a free trade agreement (AanZfta). The country is also the main actor of the Pacific Islands Forum (Pif), an intergovernmental organization which, in addition to Australia, includes most of the Pacific islands and is aimed, by statute, at improving the economic and social conditions of the populations. of the acceding countries. Finally, it should not be forgotten that Canberra is a member of the Commowealth, the organization that gathers a large part of the former colonies of the British Empire.