Australia, with a population of 26,005,540, is ranked 54th in the world, just behind Niger. Located in Oceania, it covers a total area of 7,741,220 square kilometers, ranking 6th globally, just below Brazil.
Australia’s economic position in 2022 is robust, with a GDP of 1,692,956,646,855.7 USD, ranking 12th globally. It follows Brazil, with a GDP of 1,920,095,779,022.73 USD. The GDP per capita in Australia is 65,099.8459 USD, placing it 13th worldwide.
Denmark is ahead in this aspect, with a GDP per capita of 67,790.054 USD. Australia’s economy is diverse, with strong sectors in mining, agriculture, and services, contributing to its stable economic growth and high standard of living for its citizens.
What are the economic activities of Australia?
- Primary activities: 3.6% of GDP.
- Secondary activities: 25.3% of GDP.
- Tertiary activities: 71.2% of GDP.
Primary Sector of Australia
Australia’s primary sector, particularly its agricultural activities, thrives due to its diverse climate and abundant natural resources. With 47.26% of the land dedicated to agriculture, the country produces a variety of crops and animal products. The main agricultural products include wheat, sugarcane, barley, milk, rapeseed, cotton, sorghum, beef, oats, and chicken.
Despite contributing 3.6% to the GDP, agriculture remains vital to the economy, providing employment and sustaining rural communities. The sector’s significance lies in the production of a wide range of high-quality products, ensuring food security and export opportunities.
Australia’s diverse geology provides a rich array of natural resources, driving its primary sector. With vast reserves of coal, iron ore, uranium, opals, and more, the country dominates global markets. Notably, it leads in coal exports, opal supply, uranium reserves, and LNG exports, shaping its strong economy.
Australia’s oil production of around 334,448 barrels per day ranks it 20th globally. With reserves of 1,193,000,000 barrels, it holds 0.15% of the world’s oil reserves.
Australia’s gas production industry continues to thrive, with 147,200 million m³ produced in 2020, solidifying its position as the 7th largest producer in the world.
Secondary Sector of Australia
What is the secondary sector or what are secondary activities?
The secondary sector involves industries that transform raw materials into finished products for consumption. In Australia, the main industrial products include industrial and transportation equipment, food processing, chemicals, and steel. These goods are manufactured for domestic consumption and export, contributing significantly to the country’s economy.
In 2023, Australia’s manufacturing sector contributed only 8.33% to the country’s total exports, indicating its relatively minor role in the economy compared to other sectors.
Tertiary sector of Australia
What is the tertiary sector or what are tertiary activities?
The tertiary sector in Australia encompasses a wide range of services where individuals provide expertise and time to enhance productivity and meet various needs. This sector involves intangible goods such as advice, attention, and expertise, catering to both consumer and business demands. Key tertiary activities in Australia include healthcare and medical care, education and training, banking and finance, tourism and hospitality, transportation and logistics, and communication and information exchange.
In particular, Australia’s tourism industry is a vital contributor to its economy, with annual arrivals reaching 9,466,000, representing a staggering 0.364 tourist per capita. Sydney’s Opera House and the Great Barrier Reef are among the most popular attractions, drawing visitors from around the globe to experience Australia’s natural wonders and cultural heritage.
Another example of tertiary economic activity is the mobile cellular economic sector, with over 28 million subscriptions, supporting technological growth by enhancing connectivity, fostering innovation, and enabling digital services.
Military Activities and Economic Sectors of Australia
The military is a key example of many economic activities in Australia. It involves the primary sector through resource extraction for military use. The secondary sector includes the manufacturing of military equipment. The tertiary sector provides services, while the quaternary sector focuses on military research and development. Lastly, the quinary sector deals with high-level decision-making and strategy in the military.
In 2023, Australia’s military expenditure was $32,340 million, which is 1.90% of the country’s GDP. The active military force consists of 58,600 personnel, resulting in about 3.8 active military members per 1,000 people.
Biggest company in Australia
Which is the biggest company in Australia? The biggest company is BHP Group, with a market value of approximately 178.07 billion USD. It operates in the materials industry, focusing on mining and resources. BHP was founded in 1885 and plays a significant role in the primary economic sector.
International Trade of Australia
Import Activities of Australia
Australia’s import activities are of high importance, with total imports in 2023 reaching $287.86 billion, accounting for 19.71% of the country’s GDP.
Australia’s import activities are diverse, with major partners like China, US, South Korea, Japan, and Singapore. Key import commodities include refined petroleum, cars, garments, trucks, and plastic products.
Exports Activities of Australia
Australia’s total exports in 2023 were $369.24 billion, accounting for 25.43% of its GDP. This indicates a medium level of importance, showcasing a significant contribution to the country’s economy.
Australia’s export activities are significant, with China being the largest partner at 29%, followed by Japan at 19% and South Korea at 10%. Key export commodities include coal, iron ore, natural gas, gold, and wheat.
Australia economy challenges in 2024
Australia faces challenges in 2024 as it navigates economic shifts towards green energy. Despite a strong economy, it grapples with balancing mining and sustainability goals. The “Future Made in Australia” program aims to drive investments in renewable energy, but the transition poses hurdles in maintaining trade partnerships and economic stability.
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