The Commonwealth of Australia is defined as the world’s smallest continent was first claimed by the British in 1770 and was officially settled through the penal colony of New South Wales in 1788. The Australia Market is based on the mixed economy model adopted by many of the Western countries. To say the least, Australia is a developed economy and a very prosperous one indeed. The Australian economy has made significant strides through the rising prices of Australian exports and increasing tourism. It should the noted in this context that the country’s growth prospects have often drawn flak due to the absence of an export-oriented manufacturing industry as Australian exports are mainly centered on dairy products such as cheese and wool and meat. Agriculture and natural resources constitute about 3%-5% of the Gross Domestic Product (GDP) and the main export markets include Japan, South Korea, New Zealand, USA and China. Australia has the fourth-largest current account deficit in the world (about 7% of its GDP) which is considered to be problematic by some economists as it has coincided with the high terms of trade (rising prices of its exports) and low interest rates which has made the cost of foreign debt servicing low. Important highlights in the Australian economy include the floating of the Australian dollar in 1983, deregulation of the financial system, the labor market and privatization of state-owned businesses such as the telecommunications industry.
Some of the indicators of the Australian economy as in 2007 would be unemployment at 4.6%, inflation in the range of 2%-3% and the service sector including tourism, education, financial services constituting about 69% of the GDP.
Some of the important Australian markets can be categorized as:-
Money and Capital Markets:
The money market is dominated by a few large banks and financial institutions such as Commonwealth Bank Group, Westpac and National Australia Bank. The capital market in Australia is rapidly growing with more than $65 billion of new debt securities launched into the public market. Raising equity through venture capital is also getting popular. The primary stock exchange is the Australian Stock exchange (ASX) and has been transformed into an all-electronic exchange at the moment. It is a public company and is regulated by the Australian Securities and Investments Commission (ASIC). The major market index is the Standard and Poor (S&P) or ASX 200.
Pharmaceutical Market:
Australia has an advanced healthcare system and the demand for pharmaceutical products is quite high. However, its prices in Australia tend to be low compared to most other developed countries due to tight public pricing and reimbursement regulations through the Pharmaceutical Benefits Scheme (PBS). The market for pharmaceuticals in Australia is small and growing and spurted by many multinational producers. Various government incentives exist for domestic research and development. The market is still heavily reliant on imported drugs sourced from the European Union.
Labor Market:
The employment of Australian labor over the last quarter of a century has been heavily biased towards the service sector with the share in the agricultural and manufacturing sector falling over time. There has also been an increased participation of women and students in the workforce as a part of demand for part-time workers and those with interactive skills. With an increase in globalization, the demand for knowledge –based services and labor and those with superior cognitive skills are in demand.