ALPHA Fund Australias Economic Strengths January 2011 Austrade Presentation

download ALPHA Fund   Australias Economic Strengths   January 2011   Austrade Presentation

of 68

  • date post

    20-May-2015
  • Category

    Documents

  • view

    703
  • download

    4

Embed Size (px)

Transcript of ALPHA Fund Australias Economic Strengths January 2011 Austrade Presentation

  • 1. AustraliaA Global FinancialServices CentreBenchmark Report 2010

2. AUSTRALIAA Global Financial Services CentreAustralia has emerged from the Global Financial Crisiswith its standing as a nancial centre in the regionenhanced.Australia weathered the worst of the global nancial crisis. Australias nancial sectorremains in robust good health, underpinned by a world best practice regulatory system.The World Economic Forums Financial Development Report 2009 has also rankedAustralia second out of 55 of the worlds leading nancial systems and capital markets. ABN 11 764 698 227Australia is home to the worlds fourth largest pool of contestable funds underDate: September 2010management, which is also the largest in the region. The funds management sector has ISBN: 978-0-9807059-3-5grown ve-fold since 1995, at a compound annual growth rate of 12 per cent, and nowhas A$ 1.7 trillion in funds under management. DISCLAIMER This report has been prepared as a general overview. It is not intended to provide an exhaustive coverageAustralias impressive record of sustained economic and employment growth is of the topic. The information is made available on theexpected to continue. The IMF forecasts Australian economic growth of 3.0 per cent inunderstanding that the Australian Trade Commission2010 and 3.5 per cent for 2011. This compares favourably with those of other advanced(Austrade) is not providing professional advice. Therefore, while all care has been taken in theeconomies. Australias unemployment rate is also relatively low at 5.3 per cent. preparation of this report, Austrade does not acceptThe 2010 IMD World Competitiveness Yearbook has rated Australias economy as the responsibility for any losses suffered by persons relyingsecond most resilient in the world.on the information contained in this report or arising from any error or omission in the report. Any person relying on this information does so entirely at theirThese core economic strengths, our robust institutional framework, the openness of own discretion and Austrade strongly recommends theour economy and the size, depth and sophistication of our markets will underpin thereader obtain independent professional advice prior to acting on this information.future growth of the nancial services sector. Austrades role includes to facilitate engagement byThe Australian Government has continued to take important steps to support the Australian nancial services exporters in markets outside Australia. Austrade is not a promoter of anyinternationalisation of the nancial sector and to enhance Australias attractiveness nancial services products or investments and doesas a global nancial services centre.not provide investment advice. Austrade assumes no responsibility for any company, product or service mentioned in this document, for any materials provided in relation to such products, nor for any act or omission of any business connected with such products. Investors should always consider whether an investment is appropriate for their needs and seek out independent advice as appropriate. 3. SECTION 1 Strong Economy Australias performance through the Global Worlds 20 Largest Economies 2 Financial Crisis conrms its standing as one Real GDP Growth by Country 3 of the worlds most resilient economies. Resilience of the Economy to Economic Cycles 4Unemployment Rates by Country5Australias Real Gross Value Added by Industry 6Australias Real Gross Value Added Growth by Industry7Gross Fixed Capital Formation as a Percentage of GDP 8Inward Foreign Direct Investment Stocks by Country 9Australias Exports of Goods and Services10Australias Exports of Education Services11The Prosperity Index World Ranking by Country12Net Government Debt13Percentage of Nonperforming Bank Loans to Total Bank Loans 14 StrongEconomy 4. Worlds 20 Largest Economies 2010FPercentage share of total world nominal GDP in US$ Rest of World 19.17%14. Mexico 1.61%15. South Korea 1.60%16. Netherlands 1.29% 1. USA 23.96%17. Turkey 1.15%18. Indonesia 1.09%19. Switzerland 0.87%20. Belgium 0.78%8.39% 13. Australia 1.93%2. China 8.69% 12. India 2.21% 11. Spain 2.31%3. Japan 8.54% 10. Russia 2.44% 9. Canada 2.52% 8. Brazil 3.09% 7. Italy 3.43%4. Germany 5.40% 6. UK 3.60% 5. France 4.32%GDP of the worlds 183 economies: US$61,767 billionGDP of Asia Pacic Economic Cooperations 21 member economies: US$34,483 billion (55.83%)F = ForecastSources: International Monetary Fund, World Economic Outlook Database, April 2010; AustradeAlthough Australias population is less than half a per cent of the global total, its economy ranks the 13th largest in the world, rivalling countries such asIndia, South Korea and Netherlands. Australias GDP is now estimated at around US$1.2 trillion, the fourth largest economy in the Asia-Pacic region. Section 1. Strong Economy 2 5. Real GDP Growth by Country 2002 to 2010F Average Growth Rate Country 1998 to 20102002 2003 2004 200520062007 20082009 2010F China9.7 9.1 10.0 10.1 10.411.613.0 9.69.1 10.5 India7.0 4.66.97.99.2 9.8 9.4 6.45.79.4 Vietnam6.9 7.17.37.88.4 8.2 8.5 6.25.36.5 UAE5.4 2.6 11.99.78.2 8.7 6.1 5.1 -0.71.3 Singapore5.0 4.23.89.27.6 8.7 8.2 1.4 -1.39.9 Korea4.2 7.22.84.64.0 5.2 5.1 2.30.25.7 Philippines4.2 4.44.96.45.0 5.3 7.1 3.81.16.0 Malaysia 4.1 5.45.86.85.3 5.8 6.2 4.6 -1.76.7 Taiwan 4.0 5.33.76.24.7 5.4 6.0 0.7 -1.97.7 Indonesia3.5 4.54.85.05.7 5.5 6.3 6.04.56.0 Hong Kong3.4 1.83.08.57.1 7.0 6.4 2.1 -2.86.0 Australia3.3 3.93.23.63.2 2.6 4.7 2.41.33.0 Thailand 3.2 5.37.16.34.6 5.1 4.9 2.5 -2.27.0 Brazil 3.1 2.71.15.73.2 4.0 6.1 5.1 -0.27.1 Greece 3.0 3.45.94.62.2 4.5 4.5 2.0 -2.0 -2.0 Spain2.7 2.73.13.33.6 4.0 3.6 0.9 -3.6 -0.4 Canada 2.7 2.91.93.13.0 2.9 2.5 0.5 -2.53.6 New Zealand2.5 4.94.24.43.2 1.0 2.8-0.1 -1.63.0 USA2.4 1.82.53.63.1 2.7 2.1 0.4 -2.43.3 UK 2.0 2.12.83.02.2 2.9 2.6 0.5 -4.91.2 Netherlands2.0 0.10.32.22.0 3.4 3.6 2.0 -4.01.3 Switzerland1.8 0.4 -0.22.52.6 3.6 3.6 1.8 -1.51.5 France 1.7 1.11.12.31.9 2.4 2.3 0.1 -2.51.4 Germany1.0 0.0 -0.21.20.7 3.2 2.5 1.2 -4.91.4 Italy0.7 0.50.01.50.7 2.0 1.5-1.3 -5.00.9 Japan0.6 0.31.42.71.9 2.0 2.4-1.2 -5.22.4 World Average1 2.6 2.02.74.03.4 3.9 3.9 1.8 -2.03.6F = Forecast; UAE = United Arab Emirates1. Based on market exchange ratesSources: International Monetary Fund, World Economic Outlook (WEO) Database, April 2009; WEO Update July 2009; AustradeIn the July 2010 Update of the International Monetary Funds (IMF) World Economic Outlook, the IMF has forecast that the Australian economy willgrow by 3.0 per cent in 2010 and 3.5 per cent in 2011, giving it a brighter outlook than that of the advanced economies as a whole. A timely response tothe nancial crisis, a healthy banking sector, rigorous regulatory environment, exible exchange rate and sustained demand from China for Australiancommodities helped to avoid the worst of the nancial turbulence that other economies experienced. Section 1. Strong Economy 3 6. Resilience of the Economy to Economic Cycles 2006 to 2010The higher the score the better1 Rank Country2006 Score Country 2007 Score Country 2008 ScoreCountry2009 Score Country 2010 Score1 Australia 7.39Denmark7.45Australia6.78 Qatar6.16 Israel 7.13 2USA 7.22USA 6.90 Denmark 6.73Norway5.96Australia 7.04 3Denmark7.16 Israel6.82 Switzerland6.43 Australia 5.83India 6.82 4Hong Kong 7.09Austria6.67Israel6.14Chile 5.83Qatar 6.82 5India 6.84Malaysia6.64 Austria6.00 Denmark5.79 Malaysia6.63 6Israel6.80Switzerland 6.43 Norway 5.96 India5.78 Chile 6.29 7Ireland 6.68Australia 6.38 Chile5.89 Brazil5.54Switzerland 6.27 8Norway6.68India 6.33 India5.87 Israel5.53Norway6.11 9Chile 6.41Hong Kong 6.33 Brazil 5.83 Switzerland 5.38Taiwan6.07 10 Canada6.38Singapore6.19Finland5.80 China 5.05China 6.02 11 Switzerland 6.34China6.17Singapore 5.78Malaysia5.04Poland5.80 12 Malaysia6.34Norway6.08 Sweden 5.66 Finland 5.00Singapore 5.78 13 Japan 6.32UK6.02 Netherlands5.66 Austria 4.98Sweden5.75 14 Qatar 6.31Chile 6.00 Malaysia 5.66 Singapore 4.96Indonesia 5.64 15 Singapore 6.30Taiwan 5.79Hong Kong 5.61Hong Kong 4.94South Korea 5.55 16 Estonia6.19 Japan5.79Taiwan 5.52 Taiwan 4.91 Canada5.55 17 Finland 6.02Ireland5.76Czech Republic5.41South Africa4.84Brazil5.51 18 Iceland 6.00Luxembourg 5.73Canada 5.36 Netherlands 4.83Philippines 5.50 19 China 5.90Estonia5.72Germany5.34 Germany4.79 Austria 5.46 20 Thailand5.82Netherlands 5.66 Slovenia 5.29 Sweden 4.77 Hong Kong 5.40 21 UK5.82Slovenia5.66 USA5.29 Philippines4.73 Thailand5.33 22 South Africa5.75Sweden 5.61Estonia5.27 Slovenia4.63Denmark 5.22 23 Sweden5.72Czech Republic 5.60Jordan5.15Lithuania 4.60Netherlands 5.20 24 Jordan5.67Jordan5.50 China 5.15Jordan4.60Germany 5.14 25 Taiwan5.65Iceland 5.44 Ireland5.02 New Zealand 4.49Turkey4.87Surveyed question: Resilience of the economy to economic cycles is strong.1. IMD World Competitiveness Yearbook Executive Opinion Survey based on an index from 0 to 10. The IMD included 58 economies in the 2010 survey.Sources: IMD World Competitiveness Online 1995-2010 (Updated: May 2010); AustradeThe Australian economy has recorded 19 years of uninterrupted growth to 2010, despite two global downturns. The strength of the Australian economyis well recognised. The 2010 Institute for Management Development (IMD) World Competitiveness Yearbook rated Australias economy the second mostresilient in the world. For countries with populations greater than 20 million, Australia ranked rst in 2009 and 2010, and has topped this category in eightof the previous nine years. Section 1. Strong Economy4 7. Unemployment Rates by Country 2007 to 2010Unemployment Rate Percentage of Labour ForceAnnualLatest Rate1Country2007 200820092010Spain 8.311.318.020.1Ireland 4.6 6.111.813.7Turkey 10.311.014.112.0Greece8.3 7.7 9.511.7Portugal8.0 7.6 9.510.6France8.0 7.4 9.1 9.5Sweden6.0 6.2 8.3 9.5USA 4.6 5.8 9.3 9.5Belgium7.57.0 7.9 8.6Chile7.17.810.8 8.5Italy 5.9 6.7 7.8 8.4Canada6.0 6.1 8.3 8.0UK5.4 5.7 7.6 7.8Germany 8.7 7.57.77.6Brazil9.3 7.9 8.1 7.0Russia6.1 6.4 8.4 6