Australia: Drought challenge

A pick-up in export volumes is likely to bring output growth gradually back up above the trend rate of over 3% by 2008, despite a decline in the terms of trade and a cooling of the business investment boom. However, growth will be held back in 2007 by the effect of a drought on the agricultural sector.
Interest rates are close to a level that should ensure inflation returns to the target over the coming year. A modest fiscal surplus should be maintained, as buoyant tax receipts related to the commodities boom will be transitory. Skill shortages have threatened to reduce growth and prompted the recent announcement of a new skills initiative. Constraints on trading water need to be removed so that scarce water moves to higher value uses.
Population (000s), 200520 329
Area (000 sq km)7 687
CurrencyDollar
GDP (Billion USD), 2005672.9
Life expectancy at birth (Women, Men), 2004 83.0, 78.1
Total labour force (000s), 200510 575
Government typeIndependent Federal State, UK Monarch
Indicators% change unless otherwise indicated
200620072008
GDP growth2.63.03.4
Household savings ratio-1.7-0.8-1.2
Consumer price index3.72.82.5
Unemployment rate (%)5.05.05.1
General government financial balance
(% GDP)
2.51.91.4
Current account balance (% GDP)-5.5-5.6-5.2
Source: OECD©OECD Observer No. 258/259, December 2006


Economic data

GDP growth: +0.2% Q4 2019
Consumer price inflation: 2.3% January 2020
Trade (G20): -0.1% exp, -1.3% imp, Q4 2019
Unemployment: 5.1% January 2020
Last update: 11 March 2020

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