Robust Economy

Australia has entered its 28th year of consecutive annual economic growth, setting a new record among developed economies for uninterrupted expansion.

This enviable record of steady growth proves the robustness of Australia’s economy and its reliability as a low-risk and safe environment in which to do business.

The country’s strong regulatory institutions, ability to respond to global changes, and diversified, services-based economy underpin its steady growth.

Australia’s economy is:

  • the world’s 14th largest
  • rated AAA with a stable outlook by all three global rating agencies
  • forecast to realise average annual real GDP growth of 2.7% over the next five years – the highest among major advanced economies
  • characterised by diverse services and technology sectors and low government debt.
uninterrupted annual economic growth

Charts from the Benchmark Report

The Australia Benchmark Report provides rich data demonstrating why there is no better place than Australia to do business. The report examines five key reasons for investing in Australia – Robust Economy, Dynamic Industries, Innovation and Skills, Global Ties and Strong Foundations – and compares Australia’s credentials with other countries.

Charts can be downloaded and saved as images for use in reports and presentations (when using please reference www.austrade.gov.au)

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1.  A large and growing economy
Despite Australia comprising just 0.3 per cent of the world’s population, its economy is expected to be the 14th largest in the world and the fifth largest in the Asian region in 2019. Australia’s nominal GDP is estimated at US$1.5 trillion (almost A$2 trillion) and accounts for 1.7 per cent of the global economy. In 1999, Australia’s total production value was just US$411 billion, meaning it has more than tripled in two decades.
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2.  28th year of consecutive annual economic growth
Australia has entered its 28th year of uninterrupted annual economic growth, increasing more than three per cent on average each year since 1992. Australia is the only major developed economy to have recorded no annual recessions from 1992 to 2018. The economy’s robustness is sustained by solid policy frameworks, strong institutions, an attractive investment environment and deep trade ties with the Asian region.
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3.  Highest growth among major advanced economies
Australia has continued to enjoy a robust economic performance relative to other developed economies while adjusting to the end of the mining boom of the 2000s. Australia is expected to realise average annual real GDP growth of 2.7 per cent between 2019 and 2023 – the highest among major advanced economies and up from an average growth rate of 2.6 per cent between 2014 and 2018.
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4.  Strong ties to Asia support long-term growth
Australia’s strong ties to the Asian region support a positive medium- and long-term growth outlook. By 2023, the regional economy is expected to account for 46 per cent of global production (US$81 trillion out of US$177 trillion) in terms of purchasing power parity valuation, more than double the ratio in 1983 (22 per cent). Over the same period, the combined economies of China and India will likely represent around 30 per cent of the world’s GDP, significantly up from six per cent in 1983.
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5.  Diversified, services-based economy
Australia’s economy is dominated by the services sector, which accounts for more than 75 per cent of real gross value added (GVA). Within the services sector the largest contributor to GVA is financial and insurance services, which generates 9.5 per cent of total GVA. Other top contributors include construction; health care and social assistance; professional, scientific and technical services; mining; and manufacturing.
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6.  Steadily growing services and technology sectors
Australia’s services sector (including construction) has expanded by an annual average of 3.6 per cent since 1992, above the goods sector’s annual average of 2.1 per cent. Information media and telecommunications; professional, scientific and technical services; and financial and insurance services have seen solid annual growth rates of above 4.5 per cent, reflecting the country’s skills base in technology- and knowledge-intensive sectors.
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7.  Low government debt
The IMF estimates the Australian Government’s net debt will be less than 20 per cent of GDP in 2019, well below the 74 per cent forecast for advanced economies as a group. Australian Government debt is predicted to fall to around 15 per cent of GDP by 2023, while the average debt ratio of advanced economies will remain high at around 73 per cent of GDP. The low level of public sector debt underpins Australia’s AAA sovereign credit rating and stable outlook from all three rating agencies.
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