Australia Business and Economy

Australian Business and Economy is the most thriving in the world and has made a stable base in the world economy. Australia was highly praised by various international organizations like International Monetary Fund for brilliant macroeconomic management and consistent economic reform. The small business sectors in Australia are the most significant part of its economy. The amount of investment in Australia is fourth largest in the world. The per capita Gross Domestic Product is marginally less than United States and United Kingdom which proves the high standard of Australian Economy. The development in the economic sector has led to the significant rise in the living standard of the citizens. Low inflation rate is also a positive characteristics of Australian economy which is absent in most of the developed countries.

Some specifications of Australian Economy:

• Currency- Australian Dollar
• Fiscal year- 1st July to 30th June
• Current GDP growth- 3.8%
• Current Inflation rate- 2.5%

The development of Australian economy can be traced back to the mid nineteenth century when production of wool began here. With the discovery of gold in the same decade Australia experienced economic growth and increase in population. The vast stretch of fertile lands and the huge natural resources of the country were mainly responsible for the sustained growth which the country experienced. From the Second World War the economic expansion in this country augmented highly and the boom period continued till 1970s. In 1987 the Australian Stock Exchange Limited was established which contributed to the economic advancement.

Presently the main industries in Australia are mining, chemicals, industrial and transportation goods and food processing. Very recently the Knowledge based industries has began developing rapidly mainly due to the hi-tech and social changes. Information and Communications Technology today in Australia has a market of $80 billion. There are about twenty five thousand IT companies operating here. The major business areas in Australia are Import & Export, Insurance, and also Home based Business. There are approximately three million people in Australia and around 1.2 million small businesses. A significant percentage of the goods produced by the small business sectors are exported.

The infrastructure of the government of Australia has created a stable and strong base for the economy to grow. Though the country has free market economy the contribution of the government is very significant. This has made the country the second easiest economy for a new businessman and third easiest place to get a credit for business. There are very less restrictions in Australia in the field of trade and investment. The most important tax for almost all goods and businesses are GST and VAT. The world class infrastructure, extraordinary natural resource and right governmental policies have made Australia one of the most developed nations of the world.