Australia is one of the largest mixed economies of the world. Its GDP for the year 2014 has been $1.57 trillion US Dollars. The total wealth of the continent amounts to US $6.4 trillion. In the fiscal year 2012, it was ranked as the 12th largest economy by nominal GDP. On the other hand, with the PPP-adjustable GDP, it ranked as the 17th largest economy. Australia has become the new business hub. Today, it is the 19th largest exporter and importer in the world. The country’s total wealth is 1.7% of the entire world’s economy.
The main factors making Australia’s economy more vibrant today are low inflation, high growth rate, flexibility in the labor market and an extremely competitive business environment.
Top Economies in Australia
Some areas in Australia have shown a good progress while other economies have shown recession. For this reason only, the Australian economy is known as a two speed economy. The top economies in Australia are:
- The New South Wales.
- The Western Australia.
Let’s have a detailed look at these top two economies within Australia.
New South Wales
The region of New South Wales consists of some of the most important cities of the continent, including Australia’s most populous city - Sydney. Not only is it the capital of the state of New South Wales, but also the biggest and the most significant financial center of the entire country. Receiving contributions from different cities, the state has seen a GDP growth of about 2.1% for the year 13/14. Mentioned below are some interesting facts about its economy.
- NSW holds the title of Australia’s largest economy. Its contribution towards the country’s overall GDP is around 33%.
- The main export products of New South Wales include coal, aluminum, refined petroleum and copper ore.
- Countries which are the main export partners of the state include Japan, Korea, China, USA and New Zealand.
- Its major import partners are Japan, China, Korea and Germany.
- The state contains the largest manufacturing industry of the country.
- The powerful economy of NSW is even larger than the national economies of some countries including Thailand, Ukraine, Malaysia, Colombo, South Africa and Philippines.
- More than 600 companies of Asia Pacific have their regional offices operating in New South Wales.
- Employment in financial services in NSW is now almost half the size of that in London and more than one third of the size in comparison to the New York City.
Major cities in Western Australia contributing towards its powerful economy include Melbourne, Adelaide, Brisbane and Perth. The region’s economy is dominated by its service sector and resources. Mentioned below are some interesting and informative facts.
- Western Australia holds the title of being the nation’s most productive state with a gross state product amounting to AUD $ 193 billion.
- The economy of Western Australia is mainly supported by the export of iron-ore, liquefied natural gas, gold, nickel and agricultural products. In addition, commodities like sheep, wheat, wool and live cattle also make an important contribution.
- In the year 2011 Western Australia contributed to a whopping 46% of the total exports made by Australia.
- The region’s economic output has been enhanced over the years through a vigorous increase in the service sector. This mainly includes finance, insurance and property. In addition, the construction sector has also made an important contribution.
- Western Australia’s economic growth surpasses the national average. This has been made possible owing to the rise in the global demand for petroleum and minerals, particularly from China and Japan.
- In Western Australia, the Gross State Product per personis higher than any other state of the continent.
- As compared to the other states, Western Australia’s economy is more capital intensive.
- The core strength for this state lies in its diversification. For the past fifteen years it has been exporting a wide range of commodities instead of banking on a few. This has helped in protecting and insulating itself from damage or loss caused by the ever fluctuating world prices.
- Australia is known to be the world’s largest producer of bauxite and alumina. Western Australia contributes to half of the total production of both these important minerals.
- The region also boasts of being the world’s third largest iron-ore producer. It contributes to 15% of the world’s total production of this valuable mineral.
- The region also produces 75% of the total of 240 tones gold extracted in the continent.
- According to a report published in Feb 2012, the total weekly income of an adult in Western Australia on average is about AUD $1617.90 while that in the rest of Australia it is AUD $ 1406.80.
Overall, the country’s economy is booming with progress. Different sectors, including mining and business are making important contributions.