Australia In The World Economy
Uploaded by bdogg on Apr 25, 2007
Australia In The World Economy
Australia is quite a rich economy in terms of Gross Domestic Product (GDP) per head of population, ranking 17th in the world. However, this has dropped from a ranking of fourth in 1950, and ninth in 1970. This could be seen as a sign of poor economic performance, however other factors that contribute towards a high standard of living, such as environmental considerations, need to be taken into account.
For much of the period up to the 1960s most of Australia’s exports were in wool, food and other commodities. Since the mid 1970s iron ore and other ores have been a significant export. Heavy dependence on overseas markets and inflows of capital and people meant that when the world economy turned down, we were severely hit. In the mid 1970s, early 1980s and early 1990s we were hit by slowdowns in world trade and industrial growth in the major economies. Up until the 1960s the United Kingdom was our most important customer and provider of imports. Since then, Asia has increased in importance as a customer and provider of manufactured goods. In recent years, we have also seen growth in exports from the services sector – for example, tourism and foreign students paying to study in Australia.
It is apparent from research by the Australian Bureau of Statistics that the make up of Australia’s export commodities has changed significantly from the traditional dominance of rural products. Three main changes stand out. Firstly, the decline in the relative importance of our rural exports. In 1950 textile fibers made up 65 per cent of the value of our merchandise exports, and in 1997 it only accounted for 10 per cent. Secondly, the strong growth in exports of minerals and fuels. And lastly, the growth in the export of services. This is largely the product of expansion in the tourist industry and the development of education and health and financial services exports.
The destination of Australian exports has also changed significantly since 1950. The United Kingdom then accounted for 39 per cent of our exports, and in 1997 it only accounted for 7 per cent. Conversely, in 1950 Japan received only 4 per cent of our merchandise exports, and it now receives 23 per cent, while...