Australia GDP Growth
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In comparison to a majority of countries, Australian economy is quite strong. This gets reflected in Australia’s robust gross domestic product (GDP) growth. In 2007, Australia’s GDP (purchasing power parity) was estimated to be around $760 billion. This was just 1.1 percent of global gross domestic product. As per International Monetary Fund, Australia also possesses one of world’s highest GDP per capita figures- $36, 226.
Australian GDP growth
| Year | GDP- Real growth |
| 2003 | 3.60 percent |
| 2004 | 3.00 percent |
| 2005 | 3.50 percent |
| 2006 | 2.70 percent |
| 2007 | 2.70 percent |
| 2008 | 4.00 percent |
Australia GDP composition
According to 2007 estimates, services accounted for 70.7 percent of total GDP of Australia. This was followed next by industry, which contributed about 25.6 percent to Australian GDP. Agriculture accounted for only 3.7 percent of Australia’s gross domestic product.
Australia GDP per capita growth
Economic strength of Australia can be easily understood from GDP per capita data based on purchasing power parity. This figure has been rising on an annual basis, and from about $9809 in 1980, Australia’s GDP per capita has risen to around $37,700 in 2008. The table below shows approximate GDP per capita figures for last 5 year period.
| Year | GDP per capita (approx.) |
| 2004 | 31,551 |
| 2005 | 32,897 |
| 2006 | 34,375 |
| 2007 | 36,258 |
| 2008 | 37,700 |
IMF predictions
International Monetary Fund (IMF) claimed that Australia was in a strong position to counter global financial market turbulence. For fiscal year ending on June 30, 2008 IMF predicted a GDP growth of 4.4 percent for Australia. But a year after that, IMF also expected Australia GDP growth to fall to 4 percent. International Monetary Fund expects Australia’s GDP growth to be minimally affected by global financial crisis.
But a few Australian hedge funds had to bear losses due to exposure to US subprime market. Liquidity levels in Australia’s money market have begun to show an improvement. Reserve Bank of Australia’s decision to increase official cash rate target to 6.50 percent on August 8, 2008, also met with approval from IMF. Cost of funding is on a rise as far as Australian economy is concerned. But significant profits in mining indicate that investments in Australia are likely to remain unaffected in near future.
