Atrium foyer, Melbourne, VIC © Nick Bowers Photography
Now in its 28th year of consecutive annual economic growth, Australia’s economy is underpinned by strong institutions, an exceptional services sector and an ability to respond to global changes. Over the next five years, Australia’s economic growth rate is forecast to be the highest among major advanced economies.
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.
Australia: A 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.
28 years of uninterrupted annual economic growth
The Australian economy remains resilient, sustained by sound macroeconomic policies, strong institutions and solid trade ties with the Asia-Pacific region. Growing 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 and is now in its 28th year of consecutive growth. The Australian economy's resilience is sustained by robust policy frameworks, strong institutions, sophisticated financial systems, an attractive investment environment and deep trade ties with the Asian region.