The Health of Australia’s Economy

There are several factors that contribute to the overall health of Australia’s economy. These include natural resources, exports, and business confidence. These factors are vital to the country’s future development. But how do they relate to one another? Let’s examine each of them in turn. In this article, we’ll look at the exports and imports, as well as Business confidence and natural resources.

Imports

Imports are a vital part of Australia’s economy. They allow the country to import foreign products and bring them to the market. Australia has 12 top export markets, with total exports expected to reach A$326 billion by 2020. Of these markets, China receives 36% of Australia’s exports. Other top export destinations include Japan, Korea, the US, and ASEAN.

Other major exports include coal, iron ore, and petroleum. In terms of value, Australia is the twenty-fourth largest exporter of goods in the world. It has a net trade balance of $28.7 billion, which is positive. The country’s trade relationship with Asia has helped it maintain a stable economy. Australia is also one of the world’s biggest suppliers of iron ore, with 30% of the global supply.

Australians import most of their machinery and equipment from overseas. A significant percentage of that equipment comes from China and the United States. However, many of these imports are heavily regulated. Some of these products cannot enter the country at all. Because of this, Australia needs to find other sources of supply.

In addition to these exports, Australia imports a range of goods from around the world. The country’s enviable reputation for quality products makes Australian exports a desirable choice for Chinese consumers. China’s growing population and growing need for food security also offer a large market for Australian agribusinesses.

Natural resources

Australia has been able to avoid recession for the past 28 years, and its economy is not entirely dependent on natural resources. In fact, the nation’s service industry (financial, commercial, and transportation services) accounts for over 70% of the country’s GDP. Tourism, however, is a major part of the economy. Although Australia’s economy relies heavily on natural resources, it has managed to stay afloat for the most part, thanks to a successful use of its many resources.

The abundance and diversity of natural resources in Australia has enticed a large amount of foreign investment. The country is home to huge reserves of coal, iron ore, copper, gold, and natural gas. It also has abundant renewable energy sources. These assets are expected to contribute significantly to the country’s economy in the future, as major investments will be made in the resources sector.

The increase in demand for these commodities increased employment in the mining sector and other industries related to the extraction of these commodities. As a result, household incomes increased and more Australians had more money to spend. This boosted the economy and government tax revenue. In addition, the demand for these commodities increased in the post-war years, creating new opportunities for miners.

Australia’s forests also contribute to the nation’s economy. About 17% of the country is covered by forest, and 1.95 million hectares are used for commercial plantations. Native forests are dominated by acacia trees and Eucalyptus trees, while half of Australia’s commercial forests are made up of exotic softwoods. Monterey pine, for example, is widely used for plywood and veneer.