Australia's Economy

In fact, neither agricultural products, nor mineral products even rank in the top five major imports for 2003.
             Economic Performance Over Time.
             Over the last 15 years the Australian economy has flourished. It has steadily grown and become more competitive on the world stage. The last three years, Australia's economy has posted GDP growth rates above 2.5% per year, with 2002 and 2003 recording growth rates of near 3.5%. The growth of the Australian economy during this time period has been on par with that of the United States and many countries in the European Union, and was actually higher than both the US and EU in 1999. In addition to its high growth, the Australian economy has been able to keep inflation rates down, at or below 3% in 2002 and 2003. Also in 2001-02 new business investment grew by 4.3%. This growth can be attributed to a competitive exchange rate and low interest rates.
             Throughout these years one of the main drivers of economic growth in Australia has been the increase in productivity. This increase in productivity was also instrumental in keeping inflation low during this time of growth. According to a US Federal Reserve Bulletin, the Australian productivity growth throughout the 1990's was higher than all G-7 countries, including the US. In addition, the report states that Australia is one of the only countries in the past few years that posted productivity gains in both labor productivity, and multifactor productivity (which includes labor, capital and intermediate purchases). .
             The unemployment rate in Australia also indicates large-scale economic growth. The rate has steadily declined from its 5-year peak in 2001 at 6.8%, to 5.8% at the close of 2003. These rates are still above the norm in the US and Japan, however they are on par with the unemployment rates in the majority of European Union countries. The reduction of unemployment only serves as more evidence illustrating the growth and prosperity of the Australian economy.