Benchmark Report 2011

AustraliaA Wealth of Opportunities

Benchmark Report 2011

Section 1 Strong Economy > 1

The Australian economy continues to perform solidly, building on 20 years of uninterrupted growth and Australia has ranked the second most resilient economy in the world for two years running. Unemployment is around 5 per cent, half that of many developed northern hemisphere countries. Inflation is contained and Australian Government net debt, at around 8 per cent of GDP, is amongst the lowest in the Organisation for Economic Co-operation and Development countries. Australia continues to benefit from a significant rise in the terms of trade and a healthy trade surplus. Demand for Australia’s minerals and natural gas exports, notably from China and other Asian countries underpins this strong performance.

These developments have seen a shift in the relative contributions to GDP by key sectors of the economy. Financial services remains the largest sector accounting for 11 per cent of GDP and the share of mining has increased to 9.6 per cent of GDP.

Australia’s financial sector continues to rank highly at number five in the World Economic Forum’s The Financial Development Report 2010. Australia has the third largest pool of bank assets in the region after Japan and China and the fourth largest pool of contestable funds under management globally.

The funds management sector has grown seven-fold since 1991 at a compound annual growth rate of 11 per cent, and now has A$1.8 trillion in funds under management. Australia’s financial markets are sophisticated, deep and highly liquid. Its stock market is the largest in the region, ex-Japan, and the sixth largest globally. The financial services sector in Australia is open and transparent and is supported by a world’s best practice regulatory system.

The outlook for the Australian economy remains buoyant with a substantial pipeline of investment in the natural resources sector and a growing demand for infrastructure investment. As a major energy supplier, Australia is looking also to respond to opportunities to develop renewable energy capabilities and to build on our reputation for innovation in fields such as biotechnology, medical research and information and communications technology.

Australia has a highly educated and highly skilled workforce. It offers strong multilingual capabilities with over a quarter of labour market participants born outside Australia. Australia has also emerged as a major regional centre for tertiary education which helps build strong business and cultural ties. The richness of Australia’s natural and human resources, the openness of the economy, institutional strength and transparency coupled with a safe and enviable lifestyle position Australia as an important gateway to the fastest growing markets in the world.

AustraliaA Wealth of Opportunities

strongeconomy

World’s 20 Largest economies 2

resilience of the economy to economic cycles 3

the Prosperity Index – 2010 World ranking by country 4

real gDP growth by country 5

Australia’s terms of trade 6

Unemployment rate by country 7

Australia’s real gross Value Added by Industry 8

Australia’s real gross Value Added – growth by Industry 9

general government Financial Balances 10

general government net Debt 11

Australia remains one of the world’s most resilient economies and has enjoyed 20 years of uninterrupted economic growth.

sectIon 1Strong Economy


Australia’s economy ranks the 13th largest in the world, rivalling countries such as India, Spain and South Korea. Australia’s GDP is now estimated at over US$1. 4 trillion, the fourth largest economy in the Asia-Pacific region.

World’s 20 Largest Economies – 2011F

Percentage share of total world nominal GDP in US$

1. USA 22.2%

2. China 9.5%

3. Japan 8.4%

4. Germany 5.1%

5. France 4.0%

6. UK 3.6%

7 . Brazil 3.5% 8. Italy 3.2% 9. Russia 2.8% 10. Canada 2.5% 11. India 2.5% 12. Spain 2.2% 13. Australia 2.1%

20. Saudi Arabia 0.8%19. Switzerland 0.9%18. Turkey 1.2%17. Indonesia 1.2%16. Netherlands 1.2%15. South Korea 1.6%14. Mexico 1.7%

Rest of World 19.7%

8.6%

F = Forecast GDP of the world’s 182 economies: US$68,625 billionGDP of Asia Pacific Economic Cooperation’s 21 member economies: US$38,245 billion (55.7%)Sources: International Monetary Fund, World Economic Outlook Database, April 2011; Austrade


The Australian economy has recorded 20 years of uninterrupted growth to 2011. The strength of the Australian economy is well recognised. The 2011 Institute for Management Development (IMD) World Competitiveness Yearbook rated Australia’s economy the second most resilient in the world for the two consecutive years to 2011. For economies with populations greater than 20 million, Australia has topped this category each year since 2008.

Resilience of the Economy to Economic Cycles The higher the score the better1

Economy 2007 Score

Denmark 7.45USA 6.90Israel 6.82Austria 6.67Malaysia 6.64Switzerland 6.43Australia 6.38India 6.33Hong Kong 6.33Singapore 6.19China 6.17Norway 6.08UK 6.02Chile 6.00Taiwan 5.79Japan 5.79Ireland 5.76Luxembourg 5.73Estonia 5.72Netherlands 5.66Slovenia 5.66Sweden 5.61Czech Republic 5.60Jordan 5.50Iceland 5.44

Economy 2008 Score

Australia 6.78Denmark 6.73Switzerland 6.43Israel 6.14Austria 6.00Norway 5.96Chile 5.89India 5.87Brazil 5.83Finland 5.80Singapore 5.78Sweden 5.66Netherlands 5.66Malaysia 5.66Hong Kong 5.61Taiwan 5.52Czech Republic 5.41Canada 5.36Germany 5.34Slovenia 5.29USA 5.29Estonia 5.27Jordan 5.15China 5.15Ireland 5.02

Economy 2009 Score

Qatar 6.16Norway 5.96Australia 5.83Chile 5.83Denmark 5.79India 5.78Brazil 5.54Israel 5.53Switzerland 5.38China 5.05Malaysia 5.04Finland 5.00Austria 4.98Singapore 4.96Hong Kong 4.94Taiwan 4.91South Africa 4.84Netherlands 4.83Germany 4.79Sweden 4.77Philippines 4.73Slovenia 4.63Lithuania 4.60Jordan 4.60New Zealand 4.49

Economy 2010 Score

Israel 7.13Australia 7.04India 6.82Qatar 6.82Malaysia 6.63Chile 6.29Switzerland 6.27Norway 6.11Taiwan 6.07China 6.02Poland 5.80Singapore 5.78Sweden 5.75Indonesia 5.64South Korea 5.55Canada 5.55Brazil 5.51Philippines 5.50Austria 5.46Hong Kong 5.40Thailand 5.33Denmark 5.22Netherlands 5.20Germany 5.14Turkey 4.87

Economy 2011 Score

Norway 7.74Australia 7.68Switzerland 7.34India 7.33Canada 7.28Qatar 6.99Chile 6.94Taiwan 6.84Israel 6.83Malaysia 6.81Sweden 6.69Brazil 6.67Austria 6.59China 6.44Estonia 6.39Turkey 6.37Philippines 6.24South Africa 6.20Germany 6.20Thailand 6.18Singapore 6.18Netherlands 6.09Indonesia 6.05Poland 6.00Peru 5.99

Rank

12345678910111213141516171819202122232425

1. Surveyed question: Resilience of the economy to economic cycles is strong (Updated: May 2011, Institute for Management Development (IMD) World Competitiveness Yearbook executive survey based on an index from 0 to 10). Sources: IMD World Competitiveness Online 1995-2011; Austrade


Australia is ranked fourth in the world and first in the Asia Pacific in the Legatum Institute’s 2010 Prosperity Index of more than 100 countries. Countries were rated on the following: economy, entrepreneurship and opportunity, governance, education, health, safety and security, personal freedom and social capital. Australia achieved the following top ten rankings: education (second), personal freedom (fourth), social capital (fourth), economy (eighth), and governance (eighth).

The Prosperity Index – 2010 World Ranking by Country1

UAE = United Arab Emirates. 1. The Prosperity Index assesses 110 countries, accounting for over 90 per cent of the world’s population, and is based on 89 different variables, each of which has a demonstrated effect on economic growth or on personal well-being. The Index consists of eight sub-indexes, each of which represents a fundamental aspect of prosperity: 1. Economy; 2. Entrepreneurship & Opportunity; 3. Governance; 4. Education; 5. Health; 6. Safety & Security; 7. Personal Freedom; and 8. Social Capital. The Legatum Institute is a London-based global think tank that promotes political, economic, and individual liberty around the globe, with a special focus on developing and transitioning countries.Sources: The 2010 Legatum Prosperity Index; Austrade

Overall Overall Entrepreneurship Safety & Personal Social Rank Economy Score Economy & Opportunity Governance Education Health Security Freedom Capital

1 Norway 3.375 1 6 12 4 4 2 2 12 Denmark 3.235 4 1 2 5 17 6 6 23 Finland 3.086 9 4 7 3 10 3 12 74 Australia 3.059 8 13 8 2 15 13 4 45 New Zealand 3.027 17 14 4 1 19 7 3 36 Sweden 2.995 7 2 6 10 9 8 5 117 Canada 2.979 5 10 5 12 11 16 1 88 Switzerland 2.928 2 11 1 29 3 12 19 69 Netherlands 2.811 3 12 10 13 13 18 13 510 USA 2.776 14 3 3 9 1 25 9 1211 Ireland 2.729 22 7 14 15 14 4 7 1013 UK 2.473 18 5 9 22 20 23 15 915 Germany 2.332 13 15 15 25 6 20 14 1617 Singapore 2.040 6 8 11 30 24 5 36 5418 Japan 1.866 11 19 20 24 5 11 42 3119 France 1.864 19 20 19 14 7 27 17 4220 Hong Kong 1.845 10 17 18 53 34 14 16 2422 Taiwan 1.535 25 22 37 7 26 10 28 5223 Spain 1.531 33 27 22 11 25 38 18 3525 Italy 1.307 29 30 32 19 18 30 27 3027 South Korea 1.208 15 18 31 8 30 33 64 5930 UAE 1.054 30 24 38 34 35 24 54 3643 Malaysia 0.246 21 34 34 45 44 52 90 9045 Brazil 0.077 32 49 60 75 55 76 25 5652 Thailand -0.086 23 54 53 47 64 75 106 2058 China -0.374 24 60 64 59 66 92 102 2761 Vietnam -0.462 62 77 62 81 74 46 66 6864 Philippines -0.542 52 69 55 60 81 85 56 8270 Indonesia -0.669 43 82 70 70 84 56 96 4488 India -1.269 44 93 41 89 95 78 74 105


In its latest assessment of Australia’s economy, the International Monetary Fund (IMF) sees the economic outlook for Australia as favourable, led by private investment in mining and commodity exports. It expects strong commodity demand to be long lasting because of favourable prospects for sustained growth in emerging Asia, including China. The IMF projects real GDP growth of 2 per cent for calendar year 2011 and 3.5 per cent growth in 2012, with the unemployment rate remaining at around 5 per cent. It notes Australia’s economic stability has been supported by prudent fiscal policy and ongoing structural reforms.

Real GDP Growth by EconomyF

F = Forecast; UAE = United Arab Emirates. 1. Australia’s 2011 and 2012 figures were sourced from International Monetary Fund (IMF) ‘Australia – 2011 Article IV Consultation Concluding Statement’.2. Based on market exchange rates. Sources: International Monetary Fund, World Economic Outlook (WEO) Database, April 2011, WEO Update June 2011; Austrade

Average Growth Rate Rank 1998 to 2012 2004 2005 2006 2007 2008 2009 2010 2011F 2012F

China 9.8 10.1 11.3 12.7 14.2 9.6 9.2 10.3 9.6 9.5India 7.0 8.1 9.2 9.7 9.9 6.2 6.8 10.4 8.2 7.8Vietnam 6.9 7.8 8.4 8.2 8.5 6.3 5.3 6.8 6.3 6.8Mongolia 6.7 10.6 7.3 18.8 10.2 8.9 -1.3 6.1 9.8 7.1UAE 5.4 10.1 8.6 8.8 6.6 5.3 -3.2 3.2 3.3 3.8Singapore 5.3 9.2 7.4 8.7 8.8 1.5 -0.8 14.5 5.2 4.4Russia 4.6 7.2 6.4 8.2 8.5 5.2 -7.8 4.0 4.8 4.5Philippines 4.4 6.4 5.0 5.3 7.1 3.7 1.1 7.3 5.0 5.0Taiwan 4.3 6.2 4.7 5.4 6.0 0.7 -1.9 10.8 5.4 5.2Malaysia 4.3 6.8 5.3 5.8 6.5 4.7 -1.7 7.2 5.5 5.2South Korea 4.3 4.6 4.0 5.2 5.1 2.3 0.2 6.1 4.5 4.2Indonesia 3.9 5.0 5.7 5.5 6.3 6.0 4.6 6.1 6.2 6.5Hong Kong 3.7 8.5 7.1 7.0 6.4 2.3 -2.7 6.8 5.4 4.2Thailand 3.4 6.3 4.6 5.1 5.0 2.5 -2.3 7.8 4.0 4.5Australia1 3.3 3.8 3.1 2.6 4.6 2.6 1.3 2.7 2.0 3.5Brazil 3.2 5.7 3.2 4.0 6.1 5.2 -0.6 7.5 4.1 3.6Canada 2.6 3.1 3.0 2.8 2.2 0.5 -2.8 3.2 2.9 2.6Spain 2.5 3.3 3.6 4.0 3.6 0.9 -3.7 -0.1 0.8 1.6New Zealand 2.4 4.5 3.3 1.0 2.8 -0.2 -2.1 1.5 0.9 4.1USA 2.4 3.6 3.1 2.7 1.9 0.0 -2.6 2.9 2.5 2.7Netherlands 1.9 2.2 2.0 3.4 3.9 1.9 -3.9 1.7 1.5 1.5UK 1.9 3.0 2.2 2.8 2.7 -0.1 -4.9 1.4 1.5 2.3Switzerland 1.9 2.5 2.6 3.6 3.6 1.9 -1.9 2.6 2.4 1.8France 1.8 2.3 2.0 2.4 2.3 0.1 -2.6 1.4 2.1 1.9Germany 1.4 0.7 0.9 3.6 2.8 0.7 -4.7 3.5 3.2 2.0Italy 0.8 1.5 0.7 2.0 1.5 -1.3 -5.2 1.3 1.0 1.3Japan 0.7 2.7 1.9 2.0 2.4 -1.2 -6.3 4.0 -0.7 2.9World Average2 2.8 3.9 3.5 4.0 3.9 1.6 -2.1 4.0 3.4 3.7


Australia’s terms of trade have reached their highest levels in 140 years, based on strong price increases for Australia’s key non-rural commodity exports. This reflects strong commodity demand from booming Asian economies, particularly those of China and India.

Australia’s Terms of TradeIndex, Trend Terms

50

60

70

80

90

100

110

120

130

Jun

1961

Jun

1963

Jun

1965

Jun

1967

Jun

1969

Jun

1971

Jun

1973

Jun

1975

Jun

1977

Jun

1979

Jun

1981

Jun

1983

Jun

1985

Jun

1987

Jun

1989

Jun

1991

Jun

1993

Jun

1995

Jun

1997

Jun

1999

Jun

2001

Jun

2005

Jun

2007

Jun

2009

Jun

2003

Jun

2011

Sources: Australian Bureau of Statistics Cat. No. 5206.0, – Australian National Accounts: National Income, Expenditure and Product, June 2011, Table 1. Key National Accounts Aggregates (Released 07 September 2011); Austrade


Australia’s unemployment rate has eased to around 5 per cent after peaking at 5.8 per cent in the middle of 2009. Over the past two years employment in Australia rose by almost half a million. Globally, Australia is ranked second in terms of economic resilience which is attributed in part to the openness of the economy and sustained economic reforms over recent decades.

Unemployment Rate by Country

1. Latest unemployment rate for each country – annual rates for 2011 not yet available.Sources: 2002 to 2010 data taken from OECD.StatExtracts on 01 Sep 2011, and latest figures sourced from Bloomberg on 01 Sep 2011; Austrade

Latest Rate1 Rank 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Norway 3.9 4.4 4.4 4.6 3.4 2.5 2.6 3.2 3.6 2.8

Switzerland 2.9 4.1 4.3 4.4 4.0 3.6 3.4 4.1 4.2 2.8

South Korea 3.3 3.6 3.7 3.7 3.4 3.2 3.2 3.6 3.7 3.3

Netherlands 3.1 4.1 5.0 5.3 4.3 3.6 3.0 3.7 4.5 4.3

Japan 5.4 5.2 4.7 4.4 4.1 3.9 4.0 5.0 5.0 4.7

Australia 6.4 5.9 5.4 5.0 4.8 4.4 4.2 5.6 5.2 5.1Mexico 2.9 3.0 3.7 3.5 3.2 3.4 3.5 5.2 5.3 5.6

Brazil 9.1 9.7 8.9 9.3 8.4 8.1 7.1 8.3 – 6.0

Russia 7.9 8.2 7.8 7.2 7.2 6.1 6.3 8.4 7.5 6.5

New Zealand 5.3 4.8 4.0 3.8 3.9 3.7 4.2 6.1 6.5 6.5

Sweden 5.2 5.8 6.5 7.7 7.0 6.1 6.1 8.3 8.4 6.9

Germany 8.6 9.3 10.3 11.1 10.3 8.6 7.5 7.7 7.1 7.0

Denmark 4.6 5.4 5.5 4.8 3.9 3.8 3.3 6.0 7.4 7.2

Canada 7.7 7.6 7.2 6.8 6.3 6.0 6.1 8.3 8.0 7.2

Chile 8.9 8.5 8.8 8.0 7.7 7.1 7.8 9.7 8.1 7.5

Belgium 7.5 8.2 8.4 8.4 8.2 7.5 7.0 7.9 8.3 7.5

UK 5.1 4.8 4.6 4.6 5.3 5.2 5.3 7.7 7.8 7.9

Finland 9.0 9.0 8.8 8.4 7.6 6.8 6.3 8.3 8.4 7.9

Italy 9.0 8.7 8.0 7.7 6.8 6.1 6.7 7.8 8.4 8.2

USA 5.8 6.0 5.5 5.1 4.6 4.6 5.8 9.3 9.6 9.1

France 8.7 8.5 8.8 8.9 8.8 8.0 7.4 9.1 9.3 9.2

Turkey 10.4 10.5 10.8 10.6 10.2 10.3 11.0 14.0 11.9 9.4

Portugal 5.0 6.3 6.7 7.6 7.7 8.0 7.6 9.5 10.8 12.3

Ireland 4.4 4.6 4.5 4.7 4.6 4.6 5.7 12.0 13.6 14.5

Greece 10.3 9.7 10.5 9.8 8.9 8.3 7.7 9.5 12.5 15.9

Spain 11.4 11.3 11.0 9.2 8.5 8.3 11.3 18.0 20.1 21.2

Unemployment Rate – Percentage of Labour Force, Annual Rate


The financial sector is the largest contributor to Australia’s national output, directly generating 11 per cent or A$135 billion of real gross value added in the year to June 2011. Australia’s financial sector continues to grow faster than most other sectors of the economy. The financial services industry is a major driver of Australia’s economic growth, contributing almost four times that of agriculture, forestry and fisheries (A$34 billion), and almost 15 per cent more than mining (A$118 billion).

Australia’s Real Gross Value Added by Industry1

As a percentage of total industry

Professional/Scientific/Technical Services 6.8%

Finance/Insurance 11.0%

Healthcare/Social Assistance 6.1%

Public Administration/Safety 5.1%

Transport/Postal/Warehousing 5.2%

Wholesale Trade 4.6%

Retail Trade 4.5%

Education/Training 4.4%

Information Media/Telecommunications 3.2%

Service Industries 78.5%

Other Services2 15.1%

Rental/Hiring/Real Estate Services 2.7%

Utilities 2.1%

Manufacturing 9.1%

Construction 7.7%

Mining 9.6%

Agriculture/Forestry/Fishing 2.8%

1. Annual total to June 2011.2. Including Ownership of Dwellings (7.9%), Administrative/Support Services (2.6%), Accommodation/Food Services (2.2%), and Arts/Recreation Services (0.8%).Sources: Australian Bureau of Statistics, Cat. No. 5206.0, National Income, Expenditure and Product, Time Series Workbook (Released 7 September 2011), Table 33; Austrade


Australia’s finance and insurance sector has been one of the country’s highest performing industries, achieving an average annual growth rate of 4.9 per cent per annum between 1998 and 2011. This is well above the combined average for all industries (3. 4 per cent) and reflects the overall strength of Australia’s service-based economy (which currently accounts for almost 80 per cent of the Australian economy).

Australia’s Real Gross Value Added – Growth by Industry1

0 1 2 3 4 5 6 7

Manufacturing

Utilities

Rental/Hiring/Real Estate Services

Education/Training

Public Administration/Safety

Accommodation/Food Services

MiningWholesale Trade

Transport/Postal/Warehousing

Retail Trade

Arts/Recreation Services

Healthcare/Social Assistance

Agriculture/Forestry/Fishing

Financial/Insurance Services

Information/Media/Telecommunications

Administrative/Support Services

Construction

Professional/Scientific/Technical Services

All Industry Average Growth: 3.4% Per Annum

5.8

5.7

5.5

4.9

4.2

4.7

4.2

3.9

3.7

3.6

3.1

2.7

2.5

2.3

2.1

1.7

1.7

1.1

Average Annual Growth Rate (%)1. Annual total to June each year.Sources: Australian Bureau of Statistics, Cat. No. 5206.0, National Income, Expenditure and Product, Time Series Workbook (Released 7 September 2011), Table 33; Austrade


The Organisation for Economic Co-operation and Development (OECD) Economic Outlook confirms that the Australian economy remains one of the best performing in the developed world. The report shows that our general government financial deficit as a percentage of GDP is one of the lowest amongst OECD countries. The OECD has also given a strong endorsement of the Government’s fiscal strategy, stating that the prudent fiscal consolidation strategy reinforces Australia’s commitment to sound public finances.

-10.0

-7.5

-5.0

-2.5

0.0

2.5

5.0

USA

Japa

n

Irela

nd UK

Gre

ece

New

Zea

land

Fran

ce

Port

ugal

Spai

n

Pola

nd

Can

ada

Hun

gary

Aust

ria

Den

mar

k

Turk

ey

Euro

are

a

Isra

el

Belg

ium

Italy

Net

herla

nds

Aust

ralia

Ger

man

y

Finl

and

Luxe

mbo

urg

Switz

erla

nd

Sout

h Ko

rea

Swed

en

-9.1

-8.2 -8.2

-7.1 -6.5

-5.8

-4.6 -4.5 -4.4

-3.7 -3.5 -3.3 -3.2 -3.0 -3.0 -3.0 -2.9 -2.8 -2.6 -2.1

-1.4 -1.2 -0.6

0.0

0.9 1.3 1.4

General Government Financial Balances – 2012Surplus (+) or Deficit (-) as a percentage of nominal GDP

Sources: OECD Economic Outlook No. 89 – June 2011 – Annual Projections for OECD Countries, Annex Table 27 (Released 25 May 2011); Austrade


Australian Government net debt is estimated to be around 8 per cent of GDP, according to the International Monetary Fund (IMF) 2011 World Economic and Financial Surveys. The ratio is well below the average of 73.3 per cent of GDP for advanced economies. The relatively low level of public sector debt reinforces Australia’s strong financial position and sound economic credentials.

0

20

40

60

80

100

120

140

Japa

n

Irela

nd

Italy

Portu

gal

Belg

ium

Fran

ce UK USA

Spai

n

Ger

man

y

Aust

ria

Switz

erla

nd

Sout

h Af

rica

Braz

il

Mex

ico

Can

ada

Net

herla

nds

Turk

ey

Sout

h Ko

rea

New

Zea

land

Aust

ralia

Den

mar

k

135.1

104.3100.4

90.4

83.0 81.1 78.6 76.7

55.7 54.751.1 49.6

39.5 39.4 36.8 36.332.3 30.6

25.7

13.68.3 6.9

General Government Net Debt1 – 2012As a percentage of GDP

1. IMF staff estimates and projections. Projections are based on staff assessment of current policies.Sources: International Monetary Fund (IMF) World Economic and Financial Surveys, Fiscal Monitor, April 2011, Statistical Table 8; Austrade

Average 64.4Advanced 73.3Emerging 25.7

openeconomy

World merchandise Trade by country 13

Australia’s Trade in Goods and Services 14

contribution to Australia’s Total exports by Sector 15

Australia’s merchandise exports by country 16

Australia’s merchandise Imports by country 17

Australia’s merchandise exports and Imports by Industry 18

markets for Australian exports 19

Australia’s Rural and mineral Resources exports 20

exports and Imports of Australian mineral Resources 21

Value of Australian mineral exports by Destination 22

World energy Selected Indicators 23

outlook for World primary energy Demand 24

Distribution of Foreign Students in Tertiary education 25

Australia’s exports of education Services 26

overseas Students by Home country and Field of Study 27

Australian Universities Academic Ranking in Top 500 28

Stock of Foreign Direct Investment in Australia 29

Foreign Direct Investment Inward Stock by economy 30

Australia has an open economy which is increasingly integrated with countries in our region – the fastest growing markets in the world.

SecTIon 2Open Economy

Section 2 Open Economy > 13

The ratio of Australia’s trade (exports plus imports) in goods and services to GDP was high, around 40 per cent in 2010-11. According to the latest report by the World Trade Organization (WTO), Australia exported more than US$210 billion worth of merchandise goods and imported around US$202 billion worth of merchandise products, respectively the 15th and 13th largest globally.

World Merchandise Trade by Economy – 2010 Excluding Intra-EU (27) trade

Value Share Annual % Rank Exporters (US$Bn) % change

1 Extra-EU (27) exports 1,787 15.0 172 China 1,578 13.3 313 USA 1,278 10.8 214 Japan 770 6.5 335 South Korea 466 3.9 28 6 Hong Kong 401 3.4 22 – domestic exports1 18 0.2 7 – re-exports1 383 3.2 237 Russia 400 3.4 328 Canada 387 3.3 229 Singapore 352 3.0 30 – domestic exports 183 1.5 32 – re-exports 169 1.4 2810 Mexico 298 2.5 3011 Taiwan 275 2.3 3512 Saudi Arabia1 254 2.1 3213 UAE1 235 2.0 2714 India 216 1.8 3115 Australia 212 1.8 3816 Brazil 202 1.7 3217 Malaysia 199 1.7 2618 Switzerland 195 1.6 1319 Thailand 195 1.6 2820 Indonesia 158 1.3 32 Total of above4 9,858 83.0 World4 (excl. Intra-EU (27)) 11,878 100 26

Value Share Annual % Rank Importers (US$Bn) % change

1 Extra-EU (27) exports 1,977 16.5 182 USA 1,968 16.4 233 China 1,395 11.6 394 Japan 693 5.8 255 Hong Kong 442 3.7 25 – retained imports1 116 1.0 316 South Korea 425 3.5 32 7 Canada2 402 3.3 228 India 323 2.7 259 Singapore 311 2.6 26 – retained imports3 142 1.2 24 10 Mexico 311 2.6 2911 Taiwan 251 2.1 4412 Russia2 248 2.1 3013 Australia 202 1.7 2214 Brazil 191 1.6 4315 Turkey 185 1.5 3216 Thailand 182 1.5 3617 Switzerland 176 1.5 1318 UAE1 170 1.4 1319 Malaysia 165 1.4 3320 Indonesia 132 1.1 46 Total of above4 10,149 84.5 World4 (excl. Intra-EU (27)) 12,016 100 24

UAE = United Arab Emirates. 1. WTO Secretariat estimates.2. Imports are valued FOB (Free On Board).3. Singapore’s retained imports are defined as imports less re-exports.4. Includes significant re-exports or imports for re-export.Source: World Trade Organization (WTO), World Trade 2010, Prospects for 2011, Press Release (7 April 2011), Appendix Table 4; Austrade


In 2010-11, Australia’s annual export value of goods and services rose by 17 per cent to A$298 billion. The surge was led by minerals, up 48 per cent to A$79 billion, and fuels, which climbed 20 per cent to A$68 billion. Australia’s annual imports also increased by 7 per cent to A$276 billion in 2010-11. Australia recorded a total trade surplus of A$22 billion in 2010-11, a marked turnaround on the A$3 billion deficit of the previous year.

Australia’s Trade in Goods and ServicesA$ Million seasonally adjusted

-6,000

-4,000

-2,000

0

2,000

4,000

6,000

8,000

0

5,000

10,000

15,000

20,000

25,000

30,000

Imports (LHS)

Exports (LHS)

Trade Balance (RHS)

Jun

2005

Dec

200

5

Jun

2006

Dec

200

6

Jun

2007

Dec

200

7

Jun

2008

Dec

200

8

Jun

2009

Dec

200

9

Jun

2010

Dec

201

0

Jun

2011

Sources: Australian Bureau of Statistics, Cat. No. 5368.0, International Trade in Goods and Services, Australia Table 1 (Released 3 August 2011); Austrade


Over the past four decades, resources as a percentage of Australia’s total exports of goods and services have risen to over 50 per cent from around 17 per cent in 1980. In percentage terms, exports of rural and other merchandise, including manufacturing, have declined with each contributing around 14 per cent to total exports.

Contribution to Australia’s Total Exports by SectorReal value as a percentage of total exports

Sources: Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES), Australian Commodity Statistics 2010, Australian Economy Overview Tables, Table 7, (Released 2 December 2010); Austrade

0

10

20

30

40

50

60

Rural Mineral and EnergyResources

Other Merchandise,incl. Manufacturing

Services

1979-80 1989-90 1999-00 2009-10


Australia’s merchandise exports rose 10 per cent a year between 2005-06 and 2010-11. This impressive result was primarily due to strong demand for our minerals and fuels in Asia. Of the top ten export markets in 2011, eight were from the Asia-Pacific region. Their combined value accounted for 73 per cent of Australia’s total export earnings in 2010-11, up from 60 per cent five years ago.

Australia’s Merchandise Exports by Country1

A$ Billion FOB Value

CAGR = Compound Annual Growth Rate.FOB = Free on Board.UAE = United Arab Emirates. 1. Financial year ending June.Sources: Australian Bureau of Statistics Cat No. 5368.0 International Trade in Goods and Services, Australia (Released 3 August 2011), Table 14a; Austrade

Share % CAGR % Rank Economy 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2010-11 2006-11

1 China 18.1 22.8 27.0 39.3 46.5 64.6 26.4 28.9

2 Japan 31.1 32.6 35.0 52.8 37.1 46.8 19.1 8.5

3 South Korea 11.8 13.1 14.2 19.3 16.5 22.5 9.2 13.8

4 India 7.4 10.1 9.3 15.4 16.2 15.6 6.4 16.1

5 Taiwan 5.9 6.2 6.5 8.1 6.9 9.1 3.7 9.0

6 USA 9.8 9.8 10.6 11.6 9.5 9.1 3.7 -1.5

7 New Zealand 8.7 9.4 9.5 8.5 8.0 7.7 3.1 -2.6

8 Thailand 4.2 4.3 4.6 5.0 4.7 7.0 2.9 10.5

9 UK 7.8 6.1 8.3 11.5 7.2 6.5 2.7 -3.4

10 Singapore 4.2 4.6 5.2 5.5 5.0 5.4 2.2 5.3

11 Indonesia 4.0 4.2 4.0 4.3 4.3 4.8 2.0 3.7

12 Malaysia 2.5 3.1 3.4 3.7 3.1 4.1 1.7 10.0

13 Hong Kong 2.9 3.0 2.8 3.2 2.7 3.3 1.3 2.4

14 Netherlands 2.6 3.0 2.9 3.2 2.1 3.0 1.2 2.9

15 Papua New Guinea 1.4 1.5 1.6 1.6 2.0 2.2 0.9 9.8

16 UAE 1.6 2.4 3.1 3.6 2.0 2.2 0.9 5.9

17 Germany 1.4 1.4 1.5 2.2 1.7 2.1 0.9 8.2

18 Vietnam 0.9 1.6 1.8 1.2 1.4 1.8 0.7 14.6

19 South Africa 2.2 2.3 2.4 2.1 1.8 1.6 0.7 -6.1

20 Brazil 0.9 0.9 0.9 1.5 1.3 1.5 0.6 9.8

Other Markets 22.9 25.4 26.0 27.1 20.7 23.8 9.7 0.8

TOTAL 152.4 168.0 180.8 230.8 200.6 244.5 100.0 9.9


Australia’s merchandise imports rose 5 per cent a year between 2006 and 2011. Of the top 10 import partners, seven were from the Asia-Pacific region, with a total combined value of more than A$100 billion. These accounted for almost half of Australia’s total imports bills in 2010-11. China is Australia’s largest source of imports, overtaking the USA in 2005-06, with a total bill of A$ 41.1 billion in 2010-11.

Australia’s Merchandise Imports by Country1

Customs Value A$ Billion

CAGR = Compound Annual Growth Rate.UAE = United Arab Emirates. 1. Financial year ending June.Sources: Australian Bureau of Statistics Cat No. 5368.0 International Trade in Goods and Services, Australia (Released 3 August 2011), Table 14b; Austrade

Share % CAGR % Rank Economy 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2010-11 2006-11

1 China 23.2 27.1 31.0 37.0 36.4 41.1 19.2 12.1

2 USA 22.8 24.9 24.3 25.3 21.9 23.3 10.9 0.4

3 Japan 17.3 17.4 19.7 17.8 17.8 16.7 7.8 -0.8

4 Singapore 10.5 10.1 13.7 13.4 10.9 11.4 5.3 1.6

5 Germany 8.7 9.3 10.6 11.1 10.7 10.2 4.8 3.4

6 Thailand 5.4 7.2 8.8 10.8 12.4 9.1 4.3 11.1

7 Malaysia 6.8 6.6 8.1 8.3 8.5 8.8 4.1 5.5

8 New Zealand 5.5 5.6 7.0 7.1 7.0 7.4 3.4 6.1

9 South Korea 6.5 6.0 6.2 6.5 7.1 7.0 3.3 1.5

10 UK 6.0 7.4 8.5 9.0 5.8 6.0 2.8 0.1

11 Indonesia 4.6 4.6 4.6 5.0 4.7 5.8 2.7 4.8

12 Italy 4.2 4.9 4.9 5.3 4.8 4.8 2.3 3.0

13 France 5.3 3.9 5.0 4.7 3.9 3.8 1.8 -6.6

14 Taiwan 3.8 4.4 4.1 4.1 3.4 3.6 1.7 -1.0

15 Papua New Guinea 2.3 2.2 2.7 3.0 2.9 3.5 1.6 8.4

16 UAE 0.7 1.7 2.5 1.9 2.3 3.1 1.5 36.3

17 Vietnam 4.1 4.5 5.1 4.4 3.1 2.7 1.2 -8.4

18 Switzerland 1.6 1.9 2.1 2.5 2.2 2.5 1.2 9.8

19 Sweden 2.4 2.3 2.5 2.4 2.1 2.3 1.1 -0.7

20 Ireland 1.9 2.1 2.0 2.4 2.3 2.2 1.0 3.3

Other Markets 24.0 26.4 28.7 37.2 33.4 38.8 18.1 10.1

TOTAL 167.5 180.8 202.3 219.5 203.6 214.2 100.0 5.0


Iron ore exports have grown rapidly with a Compound Annual Growth Rate (CAGR) of 27 per cent between 2006 and 2011. Iron ore has overtaken coal as Australia’s number one export since 2009-10, with a 28.5 per cent share of total export earnings in 2010-11 valued at A$69.6 billion. Coal is our second most important export with a total value of more than A$43 billion in 2010-11 and market share of 17.6 per cent. Australia’s merchandise imports have increased moderately with a CAGR of 5 per cent over the past five years. Machinery and transport equipment were Australia’s top two imports, with a total combined bill of A$89 billion in 2010-11 and market share of 41 per cent.

Australia’s Merchandise Exports and Imports by Industry1

A$ Billion

CAGR = Compound Annual Growth Rate; MFG = Manufacturing.1. Financial year ending June.2. Australian New Zealand Standard Industry Classification 2006 (Trade version). Sources: Australian Bureau of Statistics Cat No. 5368.0 International Trade in Goods and Services, Australia (Released 3 August 2011), Tables 32b and 35a; Austrade

Share % CAGR % Rank Exports by Industry 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2010-11 2006-11

1 Metal Ore Mining 20.8 25.8 31.5 43.2 45.1 69.6 28.5 27.32 Coal Mining 24.3 21.8 24.4 54.7 36.4 43.1 17.6 12.23 Primary Metal and Metal Product MFG 25.0 33.5 34.1 37.0 30.9 33.4 13.7 5.94 Oil and Gas Extraction 11.4 13.9 16.6 19.4 17.9 22.5 9.2 14.55 Food Product MFG 13.5 13.9 13.8 15.8 13.6 14.6 6.0 1.66 Agriculture 8.1 7.5 8.3 10.4 8.8 11.6 4.8 7.67 Machinery and Equipment MFG 9.9 10.5 11.0 11.7 10.4 11.1 4.5 2.28 Basic Chemical and Chemical Product MFG 6.2 6.9 7.4 7.5 7.2 7.1 2.9 2.79 Transport Equipment MFG 6.1 5.3 6.4 5.5 4.5 4.1 1.7 -7.410 Petroleum and Coal Product MFG 3.2 3.1 3.8 3.1 2.6 2.9 1.2 -2.1 Other Industries 24.0 25.7 23.6 22.6 23.3 24.5 10.0 0.4 TOTAL 152.4 168.0 180.8 230.8 200.6 244.5 100.0 9.9

Share % CAGR % Rank Imports by Industry 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2010-11 2006-11

1 Machinery and Equipment MFG 51.2 55.0 57.4 63.3 58.6 60.7 28.3 3.42 Transport Equipment MFG 27.5 28.6 33.1 26.1 29.2 28.0 13.1 0.43 Basic Chemical and Chemical Product MFG 17.3 18.5 20.0 22.2 20.1 21.8 10.2 4.84 Oil and Gas Extraction 12.8 14.1 17.9 17.0 16.3 21.6 10.1 11.15 Petroleum and Coal Product MFG 8.8 8.1 12.7 13.0 11.2 12.0 5.6 6.46 Primary Metal and Metal Product MFG 9.3 11.0 13.1 18.7 13.3 11.7 5.5 4.77 Textile, Leather, Clothing and Footwear MFG 8.5 9.0 9.2 10.6 9.6 10.5 4.9 4.28 Food Product MFG 5.5 6.5 7.1 8.2 7.8 8.2 3.8 8.29 Polymer Product and Rubber Product MFG 5.4 6.2 6.4 7.0 6.9 7.4 3.5 6.510 Fabricated Metal Product MFG 5.0 5.8 6.0 7.6 6.3 6.8 3.2 6.5 Other Industries 16.3 17.9 19.3 25.6 24.3 25.5 11.9 9.5 TOTAL 167.5 180.8 202.3 219.5 203.6 214.2 100.0 5.0


China was Australia’s largest merchandise export destination with a market share of 23 per cent of our total export value in real terms in 2009-10. This figure was up sharply from 5 per cent 10 years ago and reflects the surge in China’s demand for our mineral goods. India has also emerged as a significant export destination, with a market share of 8 per cent in 2010. With regards to market shares of major developed economies, Japan remains important accounting for 18 per cent of exports. The shares going to the European Union and the USA have declined to 8 per cent and 5 per cent respectively.

Markets for Australian Exports As a percentage of total exports by economy and industry in 2009-10 Dollars

EU = European Union. Sources: Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES), Australian Commodities, June quarter 2011, vol 18 no 2, June quarter 2011, Page 145; Austrade

(A$ Billion) China Japan South Korea India EU 27 USA New Zealand Other

TOTAL 1999-00 132.8 5 19 8 2 13 10 7 36 2009-10 200.7 23 18 8 8 8 5 4 26 (A$ Billion) Japan ASEAN Other Asia China USA EU 27 Middle East Other

Agriculture 1999-00 33.5 17 15 15 7 8 11 8 19

2009-10 28.6 14 14 14 12 8 6 6 26 (A$ Billion) China Japan India South Korea EU 27 Other Asia Thailand Other

Minerals 1999-00 37.9 5 16 1 9 9 22 2 36

2009-10 82.1 37 12 11 8 8 7 3 14 (A$ Billion) Japan South Korea India Taiwan Other Asia EU 27 Other

Energy 1999-00 25.2 39 12 3 7 12 7 20

2009-10 57.5 38 12 11 5 20 5 9 New (A$ Billion) Zealand USA China EU 27 South Korea Japan Other

Manufacturing 1999-00 31.4 21 23 4 24 8 8 12

2009-10 29.1 19 19 18 15 5 4 20


Export earnings from the rural and mineral resources sectors are expected to reach a record A$253 billion in 2011-12. This represents an overall increase of 18 per cent from an estimated A$215 billion in 2010-11. The value of rural exports is predicted to grow by 6 per cent in 2011-12 to A$36 billion, following an estimated rise of 12 per cent to A$34 billion in 2010-11. This forecast increase largely reflects expected higher farm production and a favourable outlook for agricultural prices on world markets. Export earnings from mineral resources are projected to jump by 20 per cent in 2011-12 to A$217 billion, following an estimated rise of 31 per cent to around A$181 billion in 2010-11.

Australia’s Rural and Mineral Resources Exports1

CAGR = Compound Annual Growth Rate; E = ABARES estimate; F = ABARES forecast; YOY = Year on Year. 1. Balance of payments basis.2. Includes other farm, forest and fisheries products. Includes exports of wine and of paper and paperboard, which are not included in this balance of payments item

by the ABS.3. Includes diamonds, which are not included in this balance of payments item by the ABS.4. Includes ABARES estimates for steel and nickel, which are retained as confidential by the ABS.Sources: Australian Bureau of Agricultural and Resources Economics and Science (ABARES), June Statistics Data Table 6 ; Australian Bureau of Statistics (ABS), Balance of Payments and International Investment Position, Australia, Cat. No. 5302.0, Canberra.

2006-07 2007-08 2008-09 2009-10 2010-11F 2011-12F % Share YoY % Change % CAGR

Rural

Cereal Grains and Products 4.2 5.0 6.9 5.3 7.3 8.5 3.3 15.9 15.2

Sugar and Honey 1.7 1.2 1.5 2.1 1.4 1.4 0.6 1.7 -2.9

Meat and Meat Preparations 7.1 6.5 7.5 6.4 6.9 6.9 2.7 0.3 -0.6

Wool and Sheepskins 3.1 2.8 2.3 2.3 3.0 3.0 1.2 0.7 -0.1

Other Rural2 14.4 14.5 15.8 14.5 15.4 16.3 6.5 5.8 2.5

TOTAL 30.4 30.0 33.9 30.5 34.0 36.1 14.3 6.2 3.5

Mineral Resources Coal, Coke and Briquettes 21.9 24.6 55.0 36.8 46.2 60.7 24.0 31.2 22.6

Other Mineral Fuels 15.6 18.9 20.7 19.0 22.8 25.8 10.2 13.0 10.5

Metalliferous Ores and 36.0 42.0 52.7 54.1 80.2 92.0 36.4 14.7 20.6 Other Minerals3, E

Gold 10.7 12.3 17.5 14.3 15.0 20.0 7.9 33.2 13.2

Other Metals4,E 22.3 18.5 14.4 14.0 16.2 18.1 7.2 11.9 -4.1

TOTALE 106.7 116.2 160.2 138.2 180.5 216.6 85.7 20.0 15.2TOTAL COMMODITIES SECTORE 137.1 146.1 194.1 168.7 214.5 252.7 100.0 17.8 13.0

Current Price A$ Billion 2011-12F 2007-12F

Current Price A$ Billion


With the rise in demand for commodities, notably from emerging Asian economies, the value of Australia’s resource exports increased sharply to around A$137 billion in 2010 from A$45 billion in 2000 and from less than A$25 billion 20 years ago. Imports also rose rapidly, albeit from a lower base. The import bill of mineral resources was estimated to be around A$40 billion in 2009-10.

Exports and Imports of Australian Mineral Resources1

0

20

40

60

80

100

120

140

160

1970-71 1973-74 1976-77 1979-80 1982-83 1985-86 1988-89 1991-92 1994-95 1997-98 2000-01 2003-04 2006-07 2009-10

Exports

Imports

A$ B

illion

1. Balance of payments basis.Sources: Australian Bureau of Agricultural and Resource Economics and Sciences, Australian Commodity Statistics 2010, Australian Economy – Resources Sector, Table 37; Austrade


In 2009-10, Australia’s export earnings from mineral commodities totalled A$135 billion, up sharply from A$43 billion a decade ago. This represents a CAGR of 12 per cent over the past 10 years. The surge in our export earnings reflects continuing strong growth in demand from Australia’s major trading partners such as China, Japan, India and South Korea. The combined export value of these top four markets totalled A$97 billion in 2009-10, significantly up from A$19 billion between 2000 and 2010. The combined market share of these economies has risen to 72 per cent of mineral exports in 2010 from 44 per cent 10 years ago.

Value of Australian Mineral Exports A$ Billion by destination

CAGR = Compound Annual Growth Rate.1. Not on a balance of payments basis. Sources: Australian Bureau of Agricultural and Resource Economics and Sciences , Australian Commodity Statistics 2010, Australian Economy – Resources Sector, Table 40; Austrade

0

5

10

15

20

25

30

35

40

China Japan India SouthKorea

UK Taiwan Singapore USA Germany Netherlands NewZealand

France HongKong

2009-101999-00

2.04

37.7

11.3

31.1

0.95

14.9

4.65

13.3

1.54

5.12

2.96

5.07

3.26

2.77

1.80

1.67

0.38 0.

95

0.46

0.94

0.86

0.86

0.31 0.62 1.0

1

0.61


Australia is one of the top energy export producers. Australia has more than one third of the world’s known economic uranium resources, very large coal (black and brown) resources that underpin exports and low-cost domestic electricity production, and substantial conventional gas and coal seam gas resources. This globally significant resource base is capable of meeting both domestic and increased export demand for energy over the next 20 years and beyond.

World Energy Selected Indicators

Mtoe = Million tonnes of oil equivalent; TPES = Total primary energy supply; TWh = Terawatt hours.UAE = United Arab Emirates. OECD = Organisation for Economic Co-operation and Development.1. Gross production plus imports minus exports minus losses.2. Includes Hong Kong.Sources: The International Energy Agency, 2010 Key World Energy Statistics, Selected Indicators for 2008; Austrade

Energy Net Exports (-)/ Electricity Production Import (+) TPES Consumption1 (Mtoe) (Mtoe) (Mtoe) (TWh)

Region World 12,369 – 12,267 18,603 OECD 3,864 1,765 5,422 10,097 Asia 1,263 205 1,410 1,570 Middle East 1,605 -975 594 672 Africa 1,161 -487 655 562 Latin America 728 -133 575 904Country/Economy USA 1,706 634 2,284 4,156 Japan 89 419 496 1,031 Germany 134 211 335 587 China2 1,993 210 2,131 3,293 South Korea 45 195 227 430 India 468 158 621 645 Italy 27 156 176 339 France 137 139 267 494 Spain 30 123 139 288 Taiwan 13 97 105 230 Turkey 29 73 99 171 Ukraine 81 59 136 164 UK 167 58 208 372 Belgium 15 56 59 91 Singapore 0 56 19 40 Thailand 64 46 107 140 Netherlands 67 34 80 119 Poland 71 30 98 142

Energy Net Exports (-)/ Electricity Production Import (+) TPES Consumption1 (Mtoe) (Mtoe) (Mtoe) (TWh)

Country/Economy Russia 1,254 -537 687 914 Saudi Arabia 579 -412 162 187 Norway 220 -189 30 119 Australia 302 -167 130 240 Indonesia 347 -147 199 134 Canada 407 -145 267 568 Kuwait 153 -125 26 46 Algeria 162 -124 37 33 Iran 327 -123 202 174 Nigeria 227 -115 111 19 Venezuela 181 -115 64 86 UAE 181 -103 58 76 Qatar 125 -100 24 20 Angola 106 -94 11 3 Libyan Arab Jamahiriya 104 -85 18 25 Iraq 118 -83 34 36 Kazakhstan 148 -77 71 74 Colombia 94 -60 31 44 Turkmenistan 69 -50 19 11 Mexico 234 -47 181 215 Azerbaijan 59 -45 13 20 Oman 63 -43 16 14 Trinidad and Tobago 40 -21 19 8 Sudan 35 -19 15 4 Malaysia 93 -18 73 94


In its 2009 World Energy Outlook reference scenario (which assumes no change in policy settings), the International Energy Agency (IEA) projects a 40 per cent growth of global primary energy demand between 2007 and 2030. This represents an average annual growth rate of 1.5 per cent, with the bulk of this increased demand driven by non-OECD countries. China and India are forecast to account for more than half of the increase over this period.

Outlook for World Primary Energy Demand International Energy Agency (IEA) Reference Scenario

Coal 26.5%

Oil 34.1%

Gas 20.9%

Hydro 2.2%

Nuclear 5.9%

Bioenergy 9.8% Other renewables 0.6%

Coal 29.1%

Oil 29.8%

Gas 21.2%

Hydro 2.4%

Nuclear 5.7%

Bioenergy 9.6% Other renewables 2.2%

2007 (World Demand: 502,960 PJ) 2030 (World Demand: 702,922 PJ)

Note: This assessment and report was commissioned by the Australian Government Department of Resources, Energy and Tourism (RET) and jointly undertaken by Geoscience Australia and Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES).Petajoule (PJ) = 1015 joules, the standard form of reporting energy aggregates. One petajoule is equivalent to 278 gigawatt-hours.Sources: Australian Energy Resource Assessment, Chapter 2: Australia’s Energy Resources And Market, Chart 2.6, Page 15; Austrade


Australia ranks third globally in terms of the largest number of international tertiary students. A report from the Organisation for Economic Co-operation and Development (OECD), Education at a Glance 2011, puts Australia’s percentage of foreign tertiary students at 7 per cent, following UK at 9.9 per cent and the USA at 18 per cent. In terms of international students as a percentage of total enrolments, Australia ranks highest with 21.5 per cent of students coming from offshore. This is followed by Austria and New Zealand with 15.1 per cent and 14.6 per cent respectively. The greatest number of international students are Asian making up 52 per cent of the total over all reporting destinations. Asian students make up more than 75 per cent of international students in Australia, South Korea and Japan.

Distribution of Foreign Students in Tertiary Education1 – 2009By country of destination

1. Percentage of foreign tertiary students reported to the OECD who are enrolled in each country of destination.2. Data relates to international students defined on the basis of their country of residence.3. Year of reference 2008.Sources: OECD, Education at a Glance 2011, Chart 3.2; Austrade

USA2 18%

UK2 9.9%

Australia2 7%

Germany 7%

France 6.8%

Canada 5.23%

Russia 3.7%

Japan 3.6% Spain 2.3% New Zealand 1.9% Italy 1.8% China 1.7% South Africa 1.7%

Other non-OECD countries 15.7%

Other OECD countries 6%

Austria 1.6% South Korea 1.4% Switzerland 1.3% Belguim 1.3% Netherlands 1.2% Sweden 1.1%


International education activity contributed A$18.3 billion in export income to the Australian economy in 2010. Education services remain Australia’s fourth largest export, behind metal ore mining (A$69.6 billion in 2010-11), coal mining (A$43.1 billion), and tourism (A$23 billion in 2009-10). Of the total export income generated by education services, A$17.7 billion was from spending on fees and goods and services onshore by students, with a further A$549 million from education consultancy and other services.

Australia’s Exports of Education Services

1. Export income does not include income generated by the operations of offshore campuses of Australian institutions. Sources: Australian Education International, Research Snapshot, May 2011; Austrade

A$ Million % Share % Change 2008 2009 2010 of 2010 2009 to 2010

Education Related Travel Services 15,115 17,717 17,685 96.9 -0.2 China 3,432 4,040 4,428 24.3 9.6

India 2,413 3,139 2,667 14.6 -15.0

South Korea 1,082 1,101 1,036 5.7 -5.9

Malaysia 756 844 844 4.6 0.0

Vietnam 467 702 821 4.5 17.0

Thailand 605 709 689 3.8 -2.8

Indonesia 525 568 604 3.3 6.3

Nepal 380 605 553 3.0 -8.6

Hong Kong 558 552 518 2.8 -6.2

Brazil 365 419 374 2.0 -10.7

Other countries 4,532 5,038 5,151 28.2 2.2

Other Educational Services1 495 557 549 3.0 -1.4 Education Consultancy Services 124 114 91 0.5 -20.2

Correspondence Courses 25 24 22 0.1 -8.3

Services through Educational Institutions 203 249 245 1.3 -1.6

Other Education Services 143 170 191 1.0 12.4

Royalties on Education Services 18 33 24 0.1 -27.3

TOTAL EDUCATION RELATED SERVICES EXPORTS 15,628 18,307 18,258 100.0 -0.3


Australia is the ‘first choice’ destination for students across the region. More than 320,000 students, mainly from China, Singapore, Malaysia, India, Hong Kong, Vietnam and Indonesia, are currently studying in Australia’s tertiary institutions, with a majority of students enrolling in commerce and management, information technology, engineering and related technologies.

Overseas Students1 by Permanent Home Residence and Broad Field of Education, Full Year 2009

UAE = United Arab Emirates.1. Overseas students are all students not classified as domestic in the higher education sector.2. The data takes into account the coding of combined courses in two fields of education. As a consequence, counting both fields of education for combined courses means that

the totals may be less than the sum of all broad fields of education. 3. Excluding Hong Kong, Macau and Taiwan. Sources: Department of Education, Employment and Workplace Relations, Student 2009 Full Year: Selected Higher Education Statistics, Table 3.7 Overseas Students; Austrade

Engineering Natural and Management Information and Related Society Physical Other % of and Commerce Technology Technologies and Culture Health Sciences Courses TOTAL2 Total

China3 53,583 6,345 4,798 4,456 2,621 1,254 5,124 78,181 24.4

Singapore 15,916 2,433 2,626 3,315 3,418 2,263 3,514 33,485 10.4

Malaysia 15,529 1,125 4,939 1,796 3,117 2,587 4,125 33,218 10.3

India 13,279 6,976 2,846 470 1,732 1,315 1,219 27,837 8.7

Hong Kong 13,461 1,004 825 1,619 1,445 639 2,154 21,147 6.6

Vietnam 9,093 1,214 498 499 319 273 1,221 13,117 4.1

Indonesia 6,403 963 1,079 949 379 597 1,670 12,040 3.8

USA 507 82 129 759 387 514 5,927 8,305 2.6

South Korea 2,880 377 274 910 1,277 331 860 6,909 2.2

Sri Lanka 2,880 842 737 201 201 252 249 5,362 1.7

Canada 530 43 82 832 1,266 215 1,962 4,930 1.5

Thailand 2,526 339 403 453 162 184 582 4,649 1.4

UAE 2,862 330 280 110 289 85 197 4,153 1.3

Nepal 2,135 566 116 79 777 58 134 3,865 1.2

Saudi Arabia 1,062 731 462 277 509 393 351 3,785 1.2

Other Countries 24,515 3,745 4,693 6,713 4,829 3,336 12,156 59,987 18.7

TOTAL 167,161 27,115 24,787 23,438 22,728 14,296 41,445 320,970 100.0 North-East Asia 74,256 8,145 6,224 7,950 6,290 2,629 9,584 115,078 35.9

South-East Asia 50,977 6,380 9,836 7,396 7,975 6,072 11,714 100,350 31.3

Southern & Central Asia 21,696 9,114 4,556 1,184 2,946 1,844 2,126 43,466 13.5


In the eight years since the inaugural edition of the Academic Ranking of World Universities (ARWU), the number of Australian universities in the top 500 has risen to 19 from 13. Australia is one of a select number of nations that can claim to have more than half of the institutions within their university sector listed in the ARWU Top 500. This provides Australia with a distinctive edge in promoting its university sector as high quality.

Australian Universities Academic Ranking1 in Top 500 – 2011

1. The ARWU was first published in June 2003 by the Centre for World-Class Universities and the Institute of Higher Education of Shanghai Jiao Tong University, China, and then updated on an annual basis. ARWU uses six objective indicators to rank world universities, including the number of alumni and staff winning Nobel Prizes and Field Medals, the number of highly cited researchers selected by Thomson Scientific, the number of articles published in journals of Nature and Science, the number of articles indexed in Science Citation Index – Expanded and Social Sciences Citation Index, and per capita performance with respect to the size of an institution.

2. Institutions within the same rank range are listed alphabetically. Source: The Academic Ranking of World Universities (ARWU) 2011

National Rank Institution2 World Rank

1 University of Melbourne 60

2 The Australian National University 70

3 The University of Queensland 86

4 University of Sydney 96

5 The University of Western Australia 102-150

6-7 Monash University 151-200

6-7 University of New South Wales 151-200

8-9 Macquarie University 201-300

8-9 The University of Adelaide 201-300

10-13 Flinders University 301-400

10-13 James Cook University 301-400

10-13 University of Newcastle 301-400

10-13 University of Tasmania 301-400

14-19 Curtin University of Technology 401-500

14-19 Griffith University 401-500

14-19 La Trobe University 401-500

14-19 Swinburne University of Technology 401-500

14-19 University of Technology, Sydney 401-500

14-19 University of Wollongong 401-500


Foreign direct investment (FDI) continues to grow, demonstrating investor confidence in the strong Australian economy. FDI grew by 7.5 per cent to A$474 billion in 2010 after an 11.1 per cent increase in 2009. The top five major FDI source countries continue to be the USA, UK, Japan, Netherlands and Switzerland. During 2010, FDI from the USA jumped 20. 4 per cent to A$120 billion, and FDI from China grew by 41 per cent to A$12.8 billion following an increase of almost 150 per cent in 2009. Significant growth on 2009 FDI figures has also come from South Korea (up 61.8 per cent), Canada (31.6 per cent), Singapore (22.6 per cent) and Hong Kong (22.5 per cent).

Stock of Foreign Direct Investment (FDI) in AustraliaA$ Billion

NP = Not available for publication but included in totals where applicable, unless otherwise indicated. NA = Not Applicable.Sources: Australian Bureau of Statistics Cat. No. 53520, – International Investment Position, Australia: Supplementary Statistics, 2010 (Released 3 May 2011)

Rank in 2010 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

1 USA 68.8 70.6 83.9 145.2 75.6 86.6 100.5 99.8 99.8 120.1 25.4 74.42 UK 48.1 55.4 45.7 43.6 52.5 55.8 64.5 61.4 63.6 52.5 11.1 9.23 Japan 16.3 16.7 18.4 18.1 21.4 23.8 31.1 36.7 45.0 49.4 10.4 203.14 Netherlands 10.5 12.0 11.9 18.0 21.4 24.6 25.3 20.7 33.7 31.1 6.6 195.35 Switzerland NP 9.7 10.9 9.9 11.8 16.6 16.4 19.5 17.6 20.7 4.4 NA6 Singapore 14.9 3.7 4.3 5.1 4.2 5.6 14.2 10.4 16.5 20.2 4.3 36.17 Canada 2.2 5.2 8.1 6.5 6.1 7.7 11.0 9.5 12.4 16.4 3.5 650.98 Germany 6.1 7.6 7.7 8.4 9.8 10.6 17.6 13.7 16.5 16.2 3.4 167.39 China NP NP NP NP NP 0.6 NP 3.6 9.1 12.8 2.7 NA10 France NP NP 6.1 NP 9.5 11.7 12.5 12.6 12.6 12.6 2.7 NA11 Hong Kong 1.7 NP NP NP NP 4.8 7.2 9.1 5.5 6.7 1.4 291.712 New Zealand 5.4 4.2 5.5 6.3 7.0 9.6 7.8 5.6 6.1 6.5 1.4 18.713 Belgium 2.9 3.3 NP NP NP 2.3 2.9 5.2 5.1 4.9 1.0 72.214 Bermuda 1.1 1.4 1.2 1.1 0.8 1.2 1.4 1.7 5.1 3.8 0.8 234.015 Malaysia 1.4 3.3 3.2 2.8 3.0 2.9 NP NP 4.5 3.6 0.8 159.916 Saudi Arabia NP NP NP NP NP NP NP NP NP 2.7 0.6 NA17 South Korea 0.3 NP NP NP 636 NP NP 1.0 1.3 2.1 0.4 641.318 Luxembourg 0.5 534 1,285 1,757 NP NP NP NP 3.2 1.6 0.3 215.919 South Africa NP 1,252 NP NP NP NP 1.0 1.3 1.5 1.6 0.3 NA20 Sweden 0.7 0.7 0.9 1.1 1.2 1.5 1.7 1.7 1.3 1.6 0.3 120.1 TOTAL ALL COUNTRIES 218.3 244.8 260.7 337.9 297.6 336.9 396.9 396.5 440.6 473.7 100.0 117.0 OECD 179.1 201.8 216.5 279.1 229.6 261.8 306.2 302.6 330.8 347.9 73.4 94.2 APEC 111.7 107.1 127.1 187.8 123.3 144.5 177.4 181.8 201.4 241.9 51.1 116.5 EU 80.2 93.6 87.3 90.6 105.3 114.4 136.2 128.9 147.3 131.6 27.8 64.0 ASEAN 16.3 7.0 7.4 7.8 9.0 10.5 17.7 16.1 21.8 27.5 5.8 68.7

% Share in 2010

% Change 2001-10


Australia’s world share of foreign direct investment (FDI), measured in US$, increased to 2.7 per cent in 2010, compared to its 2. 4 per cent share in 2009. UNCTAD’s World Investment Report 2011 shows that FDI into Australia was US$508 billion in 2010, up from US$242 billion in 2005. As a percentage of GDP, FDI in Australia rose to almost 40 per cent in 2010 from 31.7 per cent in 2005.

Foreign Direct Investment Inward Stock by Economy

CAGR = Compound Annual Growth Rate. NA = Not Available. Sources: United Nations Conference on Trade and Development (UNCTAD) FDI/TNC database (www.unctad.org/fdistatistics), Annex Tables 3 And 7; Austrade

Economy 2005 2009 2010 2005 2009 2010 2005 to 10 2009 to 10 2005 2009 2010

World Total FDI stocks 11,539 17,950 19,141 25.2 30.9 30.3 10.7 6.6 100.0 100.0 100.0USA 2,818 3,027 3,451 22.2 21.3 23.5 4.1 14.0 24.4 16.9 18.0

Hong Kong 523 936 1,098 294.3 444.7 485.5 16.0 17.2 4.5 5.2 5.7

UK 841 1,056 1,086 36.9 48.7 48.4 5.3 2.8 7.3 5.9 5.7

France 889 1,133 1,008 41.3 42.7 39.1 2.6 -11.0 7.7 6.3 5.3

Germany 476 677 674 17.1 20.3 20.4 7.2 -0.4 4.1 3.8 3.5

Belgium 378 863 670 100.4 183.1 144.1 12.1 -22.3 3.3 4.8 3.5

Spain 385 635 614 34.0 43.4 43.7 9.8 -3.2 3.3 3.5 3.2

Netherlands 479 659 590 75.1 83.0 75.5 4.2 -10.5 4.2 3.7 3.1

China 272 473 579 11.8 9.5 9.9 16.3 22.4 2.4 2.6 3.0

Canada 342 523 561 30.1 39.2 35.6 10.4 7.2 3.0 2.9 2.9

Switzerland 170 498 539 45.2 100.2 102.9 25.9 8.3 1.5 2.8 2.8

Australia 242 425 508 31.7 42.0 39.6 16.0 19.4 2.1 2.4 2.7Brazil 181 401 473 20.6 25.5 22.9 21.1 17.9 1.6 2.2 2.5

Singapore 195 344 470 160.5 194.0 218.4 19.3 36.8 1.7 1.9 2.5

Russia 180 382 423 23.6 31.0 28.7 18.6 10.8 1.6 2.1 2.2

Sweden 173 332 349 46.6 81.8 76.0 15.1 5.0 1.5 1.8 1.8

Italy 224 364 337 12.6 17.2 16.4 8.5 -7.4 1.9 2.0 1.8

Mexico 227 280 327 26.8 32.1 31.9 7.6 17.0 2.0 1.6 1.7

Ireland 164 247 247 81.0 111.6 121.3 8.6 -0.1 1.4 1.4 1.3

Japan 101 200 215 2.2 3.9 3.9 16.3 7.4 0.9 1.1 1.1

British Virgin Islands 49 182 212 NA NA NA 34.2 16.8 0.4 1.0 1.1

India 43 167 198 5.1 13.0 12.0 35.6 18.5 0.4 0.9 1.0

Poland 91 186 193 29.9 43.2 41.2 16.3 3.8 0.8 1.0 1.0

Turkey 71 144 182 14.8 23.4 24.5 20.6 26.7 0.6 0.8 1.0

Norway 76 147 172 25.3 38.9 41.5 17.6 16.8 0.7 0.8 0.9

FDI Stock (US$ Billion) FDI as a % of GDP CAGR % Change % Market Share %

Liquid markets

Financial development index 32

australia’s assets of Financial institutions 33

the top 500 asian Banks 34

australia’s Financial markets annual turnover 35

size of stock markets in the asia-Pacific region 36

Worldwide announced mergers & acquisitions 37

australia’s total Funds under management 38

Global significance of australia’s investment Fund assets Pool 39

Global Pension assets 40

international and domestic debt securities 41

Australia’s financial markets rank highly by global standards and are amongst the largest, fastest growing and most sophisticated in Asia.

seCtiON 3Liquid Markets

Section 3 Liquid Markets > 32

The World Economic Forum’s The Financial Development Report 2010 has ranked Australia five out of 57 of the world’s leading financial systems and capital markets, ahead of Canada, the Netherlands, Switzerland and Japan. Australia has been rated first in terms of overall financial access and has achieved solid scores in financial markets (sixth), banking (seventh) and non banking financial services (eighth).

Financial Development Index – 2010Global Ranking by Country

Sources: World Economic Forum, The Financial Development Report 2010; Austrade

Banking Non-banking Overall Index Financial Financial Financial Financial Financial Business Institutional (out of 57) Access Markets Services Services Stability Environment Environment

USA 1 5 1 27 1 39 17 14UK 2 10 4 1 2 46 15 6Hong Kong 3 2 11 3 17 2 3 10Singapore 4 13 2 13 11 4 2 1Australia 5 1 6 7 8 9 13 18Canada 6 6 12 11 3 13 7 5Netherlands 7 19 8 2 9 31 8 9Switzerland 8 24 3 15 20 5 5 11Japan 9 28 5 5 7 33 20 16Belgium 10 3 13 9 23 19 11 13France 11 14 7 23 15 11 10 17Sweden 12 7 17 10 26 27 1 2Germany 13 29 10 17 14 24 12 8Spain 14 12 14 4 10 47 23 22Norway 15 11 26 16 34 8 9 3Denmark 16 25 16 19 30 26 6 4Malaysia 17 20 25 12 18 3 30 20Ireland 18 16 23 6 16 53 18 15Austria 19 8 21 18 40 21 16 12Finland 20 51 20 24 35 12 4 7UAE 21 15 28 20 28 6 21 23China 22 26 30 8 4 17 38 35Bahrain 23 9 42 14 38 23 14 21South Korea 24 46 18 28 6 43 19 34Italy 25 22 15 22 21 38 24 30Brazil 32 27 34 38 12 10 49 44India 37 49 24 41 13 45 52 51Russia 40 54 33 57 5 42 34 53


Australia’s large, expanding and mature financial services sector has assets of more than A$5 trillion, which is equivalent to around four times nominal GDP. This reflects the sophistication and depth of our financial markets which have benefited from two decades of uninterrupted economic growth, sound management of the economy and strong legal and regulatory frameworks.

Australia’s Assets of Financial InstitutionsA$ Billion

RBA = Reserve Bank of Australia.CAGR = Compound Annual Growth Rates.Note: The US$/A$ exchange rate was US$1.0739 as at 30 June 2011 (sourced from RBA statistics); the nominal value of Australia’s GDP in the year to 30 June 2011 was A$1,391 billion. 1. The sum may not add up due to rounding. 2. The combined assets of building societies and credit unions. 3. The combined assets of public unit trusts, cash management trusts, common funds and friendly societies.4. Assets excluding funds managed by Australian investment managers on behalf of other Australian investment managers.5. The combined assets of general insurance offices and securitisation vehicles. Latest data available for general insurance was March 2011. Sources: Reserve Bank of Australia Statistics, B01 Assets of Financial Institutions (data updated 1 September 2011); Australian Bureau of Statistics, Cat. No. 5206.0, – Australian National Accounts: National Income, Expenditure and Product, June 2011, Time Series Spreadsheets (released 07 September 2011), Table 34; Austrade

All Registered Total Life Other Australian Financial Banks (other Other Financial Total Assets Offices and Managed Entities other OverseasAt the End of Systems (AFS)1 than RBA) ADIs2 Corporations of FUM Superannuation Funds3 than Clls4 Investors

Jun-1991 754 354 31 98 240 177 43 15 4 32

Jun-1996 1,059 487 29 109 377 268 67 34 8 58

Jun-2001 1,942 807 37 164 776 477 166 112 21 158

Jun-2006 3,522 1,581 54 176 1,382 778 301 261 42 329

Jun-2011 5,076 2,724 82 171 1,824 1,165 284 314 61 274

% of AFS Assets 100.0 53.7 1.6 3.4 35.9 23.0 5.6 6.2 1.2 5.4

% of nominal GDP 364.8 195.8 5.9 12.3 131.1 83.8 20.4 22.6 4.4 19.7

% of CAGR Since 1991

10.0 10.7 5.0 2.8 10.7 9.9 9.9 16.5 14.3 11.3

(ADIs) Collective Investment Institutions (CIIs)

Authorised Deposit- Taking Institutions

Funds Managed by Australian Investment Managers on behalf of

Consolidated Assets of Funds Under Management (FUM)

Other Financial Institu-tions5


Among 21 economies surveyed by the Asian Banker 500, Australia has the third largest pool of bank assets in the region after Japan and China. Australia’s total bank assets accounted for around 240 per cent of the country’s nominal GDP, well above Japan (193), China (178), South Korea (146), India (102), and the regional average (176).

The Top 500 Asian Banks

Sources: The Asian Banker 500, Issue 101 October 2010; International Monetary Fund (IMF) World Economic Outlook October 2010; Macau GDP was sourced from Statistics and Census Service Macau; Austrade

Numbers of Banks Total Assets Regional Market Total Assets 2009 GDP Rank Economy in AB500 (US$ Billion) Share % % of GDP (US$ Billion)

1 Japan 123 9,779.7 35.51 192.9 5,069

2 China 103 8,853.4 32.14 177.6 4,985

3 Australia 14 2,388.6 8.67 240.2 9944 India 43 1,258.9 4.57 101.8 1,237

5 South Korea 13 1,213.5 4.41 145.8 833

6 Hong Kong 18 1,143.0 4.15 542.8 211

7 Taiwan 35 958.7 3.48 253.3 379

8 Singapore 4 488.5 1.77 268.1 182

9 Malaysia 17 405.2 1.47 210.0 193

10 Thailand 14 273.0 0.99 103.4 264

11 New Zealand 8 230.4 0.84 195.6 118

12 Indonesia 27 214.6 0.78 39.8 539

13 Vietnam 19 97.9 0.36 105.1 93

14 Philippines 15 97.6 0.35 60.5 161

15 Pakistan 15 67.0 0.24 41.4 162

16 Bangladesh 17 26.0 0.09 27.5 95

17 Sri Lanka 6 17.1 0.06 40.5 42

18 Macau 5 14.3 0.05 67.4 21

19 Myanmar 2 12.0 0.04 35.0 34

20 Brunei 1 1.8 0.01 17.3 10

21 Cambodia 1 0.9 0.00 8.3 11

TOTAL 500 27,542.1 100.00 176.2 15,633


Aggregate Australian financial markets (over-the-counter (OTC) and exchange-traded) turnover rose 5. 4 per cent to almost A$102 trillion in 2009-10. The total market turnover in 2009-10 was more than two and a half times that of ten years ago, underlining the growth in depth and sophistication of Australia’s financial markets.

Australia’s Financial Markets Annual Turnover

CAGR = Compound Annual Growth Rate. Sources: 2010 Australian Financial Markets Report and various previous year reports; Austrade

Financial Year Ending June 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10

OTC Markets 27.4 30.3 37.9 42.5 53.3 51.7 60.5 70.9 73.0 69.9 66.7 9.3

Foreign Exchange 15.9 18.2 21.8 26.4 34.1 33.6 41.6 46.9 46.7 44.3 40.3 9.7

Other 11.4 12.1 16.1 16.2 19.2 18.1 18.9 23.9 26.3 25.6 26.4 8.7

Exchange Traded Markets 10.8 11.7 12.2 13.8 17.8 24.1 29.5 39.0 42.3 26.6 35.0 12.5

Equities 0.5 0.6 0.7 0.7 0.9 1.2 1.4 1.8 2.2 1.5 1.9 14.8

Futures 10.3 11.2 11.5 13.1 16.9 22.9 28.0 37.2 40.1 25.1 33.2 12.4

All Financial Markets 38.1 42.0 50.2 56.4 71.1 75.7 89.9 109.8 115.3 96.5 101.7 10.3

OTC Markets -2.1 10.6 25.3 12.2 25.3 -3.1 17.0 17.2 3.0 -4.3 -4.6 65.6

Foreign Exchange -16.7 14.0 19.9 20.9 29.2 -1.4 23.9 12.8 -0.5 -5.1 -9.1 39.6

Other 29.6 5.7 33.5 0.4 18.9 -6.1 4.4 26.9 10.0 -2.7 3.1 26.0

Exchange Traded Markets 2.1 8.7 4.5 13.0 28.9 35.1 22.5 32.2 8.6 -37.1 31.6 34.4

Equities 24.9 18.0 29.5 4.8 17.7 32.1 24.7 24.9 21.2 -31.8 24.2 1.8

Futures 1.3 8.2 3.3 13.5 29.5 35.2 22.4 32.6 7.9 -37.3 32.0 32.6

All Financial Markets -0.9 10.0 19.5 12.4 26.2 6.5 18.8 22.1 5.0 -16.3 5.4 100.0

(A$ Trillion)

% Change on a Year AgoMarket Share

% 2009-10

CAGR % since2000


With 2,241 listed (domestic and foreign) companies, the Australian stock market is currently the largest liquid stock market in the Asia-Pacific region (ex-Japan) and ranks sixth in the world, with a total market capitalisation of US$1,136 billion. The market capitalisation of floating stocks in Australia is more than double that of Hong Kong (US$480 billion) and more than four times larger than that of Singapore (US$258 billion).

Size of Stock Markets in the Asia-Pacific RegionMarket capitalisation of floating stocks (US$ Billion, 31 July 2011)

0

200

400

600

800

1,000

1,200

Australia(6)

China(9)

Korea (10)

Taiwan(12)

HongKong (13)

India(16)

Singapore(21)

Malaysia(27)

Indonesia(28)

Thailand(31)

Philippines(38)

NewZealand (41)

1,136

817

US$

Billi

on

798

618

480

402

258

132 13295

42 24

USA (1) 14,543 Japan (2) 2,835 UK (3) 2,786 Canada (4) 1,633 France (5) 1,227 Germany (7) 1,079

Note: The number in brackets is the world ranking of each country or economy (out of 45). Standard & Poor’s capitalisation-weighted indices are float adjusted. Under float adjustment, the share counts used in calculating the indices reflect only those shares available to investors rather than all of a company’s outstanding shares. Float adjustment excludes shares that are closely held by control groups, other publicly traded companies or government agencies.

Sources: Standard & Poor’s, Global Broad Market Index, July 2011; Austrade


Mergers and Acquisitions (M&A) activity improved in 2010 as the world economy recovered from the global financial crisis. The value of global-announced M&A totalled US$2. 4 trillion in 2010, up 22.9 per cent from 2009. Australia’s M&A announced value reached US$132 billion in 2010, an increase of 140 per cent from 2009. The rebound in Australia’s M&A activity last year was largely driven by the mining, financial, energy and telecommunications sectors. In the Asia-Pacific region M&A activity is heavily concentrated in the top three economies (Australia, China and Japan). Together, their announced deals were worth around US$347 billion – accounting for more than 60 per cent of the region’s total.

Worldwide Announced Mergers & Acquisitions – Financial Advisors

Sources: Thomson Reuters Mergers & Acquisitions Financial Advisors, Full Year 2010, Fourth Quarter 2009, Fourth Quarter 2008 and Fourth Quarter 2007; Austrade

2010 2009 2008 2007 2006 Rank Market Rank Market Rank Market Rank Market Rank Market Rank Market Value Share Value Share Value Share Value Share Value Share Value Share US$Bn % US$Bn % US$Bn % US$Bn % US$Bn % US$Bn %

Worldwide 2,434.2 100.0 1,980.3 100.0 2,887.0 100.0 4,169.1 100.0 3,609.9 100.0 15,080.6 100.0

Americas 1,136.3 46.7 921.7 46.5 1,156.4 40.1 1,890.4 45.3 1,762.9 48.8 6,867.7 45.5

USA 821.6 33.8 719.4 36.3 923.8 32.0 1,570.8 37.7 1,475.2 40.9 5,510.8 36.5

Brazil 104.2 4.3 65.4 3.3 93.1 3.2 46.0 1.1 33.6 0.9 342.2 2.3

Canada 99.6 4.1 95.9 4.8 85.5 3.0 197.6 4.7 162.1 4.5 640.8 4.2

Europe 641.0 26.3 581.0 29.3 1,168.7 40.5 1,592.6 38.2 1,325.2 36.7 5,308.4 35.2

UK 162.9 6.7 160.0 8.1 269.0 9.3 387.1 9.3 333.8 9.2 1,312.8 8.7

Asia Pacific 565.9 23.2 428.4 21.6 512.2 17.7 596.6 14.3 458.5 12.7 2,561.5 17.0

Australia 131.7 5.4 54.8 2.8 90.2 3.1 136.5 3.3 114.5 3.2 527.7 3.5

Japan 83.9 3.4 104.9 5.3 77.0 2.7 136.4 3.3 101.3 2.8 503.4 3.3

China 131.1 5.4 108.7 5.5 113.6 3.9 75.4 1.8 46.7 1.3 475.6 3.2

Africa/Middle East 91.0 3.7 49.3 2.5 49.7 1.7 89.5 2.1 63.4 1.8 342.9 2.3

2006-2010


Total investment fund assets in Australia have increased seven-fold since 1991, with a compound annual growth rate of 11 per cent. Consolidated assets under management reached A$1.8 trillion (US$1.9bn), up from A$240 billion two decades ago. Superannuation (pension) funds dominate the Australian investment management industry, representing around 53 per cent of the market. Since June 1991, superannuation funds under management have increased by 13 per cent (compounded annually) to A$974 billion (US$1,046bn). The total market share of superannuation fund assets, including funds held by Australia’s life insurance offices, represents more than 60 per cent of Australia’s total investment funds.

Australia’s Total Funds Under Management (FUM)A$ Billion

CAGR = Compound Annual Growth Rate.NA = Not Applicable.Note: The US$/A$ exchange rate was US$1.0739 as at 30 June 2011 (sourced from RBA statistics); the nominal value of Australia’s GDP in the year to 30 June 2011 was A$1,391 billion.1. Consolidated assets equal unconsolidated assets minus crossed invested assets between managed funds. 2. Figures include superannuation funds held in statutory funds for life insurance offices. 3. The combined assets of cash management trusts, common funds and friendly societies. Sources: Australian Bureau of Statistics (ABS), Cat. No. 5655.0 Managed Funds, Australia, Time Series Spreadsheet (released 25 August 2011), Tables 1. Summary Managed Funds Industry, and Table 2. Summary Managed Funds Institutions; ABS, Cat. No. 5206.0 – Australian National Accounts: National Income, Expenditure and Product, June 2011, Time Series Spreadsheets (released 07 September 2011), Table 34; Austrade

Industry Total

Funds Managed by Australian Investment Managers on behalf of Consolidated Assets of Managed Funds Institutions1

Superannuation Life Public Australian Entities Other Australian (a)+(b)+ (Pension) Insurance Offer (Retail) Other than Managed Overseas Investment At end of (c)-(d) Total(a) Funds Corporations2 Unit Trusts Other3 Funds Institutions(b) Investors (c) Managers(d)

Jun-1991 239.7 220.6 87.8 89.6 22.9 20.3 14.8 4.2 0.0

Jun-1996 376.7 335.0 149.9 117.9 44.7 22.6 33.9 7.8 0.0

Jun-2001 776.0 643.2 302.5 174.2 120.4 46.1 133.0 21.3 21.4

Jun-2006 1,382.0 1,079.0 590.1 187.8 245.7 55.5 319.1 42.2 58.4

Jun-2011 1,824.3 1,449.1 974.0 191.3 248.2 35.6 325.4 61.5 11.6

% of Total FUM 100.0 79.4 53.4 10.5 13.6 2.0 17.8 3.4 0.6

% of Nominal GDP 131.1 104.2 70.0 13.7 17.8 2.6 23.4 4.4 0.8

% CAGR Since 1991 10.7 9.9 12.8 3.9 12.6 2.8 16.7 14.3 NA


Australia’s funds under management (FUM) ranks fourth largest in the world by the Investment Company Institute’s Worldwide Mutual Fund Assets and Flows. The global significance of Australia’s FUM and the maturity of our industry see Australia well positioned to develop as a fund management centre for the region.

Global Significance of Australia’s Investment Fund Assets PoolInvestment Fund Assets1, US$, March Quarter 2011

$342bn

$235bn

$157bn

$1,500bn

$1,979bn

AUSTRALIA

GLOBAL

ASIA

CurrentValue

Largestin Asia

Australia

4th Largestin theWorld

Australia

Australia’sProjected Growth

$682bn

Canada

$57bn

Taiwan

$98bn

India

$20bn

NewZealand

$260bn

SouthKorea

$353bn

China Singapore

$999bn

HongKong

$786bn

Japan

1990

1995

2000

2015

Hong Kong Ireland

$786bn

Japan

$892bn

UK

$1,068bn$967bn$1,060bn

Brazil

$999bn$1,700bn

France

$2,656bn

Luxembourg

$12,180bn

USA

$1,060bn

Singapore

$1,055bn

Note: Circles are not to scale. Data between countries is not strictly comparable.1. Refers to home domiciled funds, except Hong Kong and New Zealand, which include home and foreign-domiciled funds. Funds of funds are not included, except for France,

Germany, Italy, and Luxembourg. In this statistical release ‘investment fund’ refers to a publicly offered, open-end fund investing in transferable securities and money market funds. It is equivalent to ‘mutual fund’ in the US and ‘UCITS’ (Undertakings for the Collective Investment of Transferable Securities) in the European Fund and Asset Management Association’s statistics on the European investment fund industry. Australia’s investment funds in the ICI survey only include consolidated assets of collective investment institutions.

2. Standard & Poor’s Investment Consulting have assumed: A$1 = US$0.80.Sources: Investment Company Institute, Worldwide Mutual Fund Assets and Flows, March 2011 (Released 4 August 2011); Hong Kong’s data (the sum of asset management business and fund advisory business of licensed corporations), December 2010, sourced from Securities and Futures Commission, Fund Management Activities Survey 2010 (Released July 2011); Singapore’s data sourced from the the speech by Mr Peter Ong, Permanent Secretary for Finance at the Investment Association of Singapore 12 Annual Conference; Singapore’s AUM was S$1. 4 trillion (US$1,060 billion, exchange rate US$1 = S$1.2875) in December 2010; the projected figures of Australia’s investment fund assets were provided by Standard & Poor’s Investment Consulting; Austrade


Australian superannuation fund (pension) assets are estimated to have reached almost US$1.3 trillion, according to Towers Watson’s 2011 survey. Over the past year, Australian superannuation assets moved up from fifth to become the fourth largest pension asset pool in the world. The growth in Australia’s pool of superannuation assets has been largely driven by the universal and mandatory ‘Superannuation Guarantee’ system introduced in 1992. The Government is committed to further increasing the Superannuation Guarantee from 9 to 12 per cent. This would boost the pool of superannuation savings by around A$500 billion over the next 25 years.

Global Pension Assets

CAGR = Compound Annual Growth Rates.E = Estimates.1. Includes Individual Retirement Arrangements (IRAs).2. Excludes personal and stakeholder defined contribution (DC) assets.Sources: Towers Watson, 2011 Global Pension Asset Study, February 2011; Austrade

(US$ Billion)Total Assets

Growth Rates – 10 Year CAGR

Market Share – % As % of GDP (local currency) Local Currency US$ Market End 2000 End 2010E End 2000 End 2010E 2000 End 2010E (31/12/00 – 31/12/10)

USA1 10,141 15,265 63.4 57.8 102 104 4.2 4.2Japan 2,418 3,471 15.1 13.1 52 64 0.2 3.7UK2 1,256 2,279 7.9 8.6 85 101 5.8 6.1Australia 275 1,261 1.7 4.8 70 103 9.6 16.4Canada 668 1,140 4.2 4.3 92 73 1.3 5.5Netherlands 441 1,032 2.8 3.9 114 134 5.1 8.9Switzerland 310 661 1.9 2.5 124 126 2.1 7.9Germany 188 471 1.2 1.8 10 14 5.8 9.6Brazil 74 342 0.5 1.3 12 17 14.7 16.5South Africa 67 256 0.4 1.0 51 72 12.8 14.3France 85 133 0.5 0.5 6 5 0.9 4.5Ireland 50 100 0.3 0.4 52 49 3.4 7.1Hong Kong 31 87 0.2 0.3 18 38 10.8 10.8TOTAL 16,004 26,496 100.0 100.0 71 76 5.9 5.1


Australia has remained the region’s third largest debt securities market in the Asia Pacific, after Japan and China, with total amounts outstanding of more than US$1.6 trillion. Australia is a regional leader in the issuance of both international and domestic debt securities. The country has more international debt securities outstanding than any other Asia Pacific nation and ranks fourth in the region in terms of domestic debt securities.

0

500

1,000

1,500

2,000

2,500

3,000

3,500

China Australia SouthKorea

India Taiwan Malaysia Thailand Singapore HongKong

Indonesia Philippines NewZealand

3,031

27

1,044

593

1,111

144

709

28

258

8

240

28

226

8

129

60 6665

9322

6441

4316

International Debt Securities (Mar 2011) Domestic Debt Securities (Dec 2010)

USA 25,349 6,730Japan 13,734 185Germany 2,616 2,157UK 1,647 3,838France 3,170 2,086Italy 3,000 1,222Canada 1,461 682

International and Domestic Debt Securities – Amount OutstandingResidence of Issuer, US$ Billion

Sources: Bank for International Settlements, Quarterly Review, June 2011, Table 11 and Table 16A; Austrade

Investment OppOrtunItIes

Australia’s real Gross value Added of major Infrastructure Industries 43

Australia’s energy Investment requirements 44

Australia’s estimated Annual electricity Generation 45

Australia’s electricity Generation by Fuel 46

Australia’s total ICt spending 47

Asia pacific total ICt spending by Country 48

Australia’s engineering Construction Activity 49

Australia’s Gross expenditure on research and Development 50

OeCD Business expenditure on research and Development 51

The unprecedented demand for Australia’s natural resources, related infrastructure requirements and increased focus on innovation offer enormous opportunities for investment.

seCtIOn 4Investment Opportunities

Section 4 Investment Opportunities > 43

Since 2000, real gross value added (GVA) of Australian infrastructure construction has increased 37 per cent mainly due to sharp rises in the development of transport and related industries. During this period, the GVA of Transport, Postal and Warehousing, and Information Media and Telecommunications expanded 45 per cent each to A$61 billion and A$39 billion respectively. As a percentage of GDP, the GVA of Australia’s infrastructure industries increased to around 10 per cent in 2009-10.

Australia’s Real Gross Value Added of Major Infrastructure IndustriesA$ Million

Sources: The Bureau of Infrastructure, Transport and Regional Economics, Australian Infrastructure Statistics Yearbook 2011, Table TI 1.1a; Austrade

Transport, Information Water Financial Year Postal and Media and Supply and Ending June Warehousing Electricity Gas Telecommunications Waste Services Total % of GDP

1974-75 16,538 4,489 130 4,819 5,813 31,789 7.5

1979-80 20,994 5,942 537 5,863 6,296 39,632 8.2

1984-85 24,754 7,526 1,049 8,351 7,098 48,778 8.8

1989-90 29,924 9,679 1,243 12,831 7,896 61,573 9.0

1994-95 34,662 11,003 1,320 19,802 8,610 75,397 9.8

1999-00 42,404 12,118 1,548 26,798 8,987 91,855 9.7

2004-05 52,671 12,754 1,668 32,457 9,383 108,933 9.8

2009-10 61,298 14,396 1,904 38,986 9,624 126,208 9.8

CAGR % Since 1975 3.8 3.4 8.0 6.2 1.5 4.0

Share % 2009-10 48.6 11.4 1.5 30.9 7.6 100.0

Energy Major Infrastructure Industries


The Asia Pacific Energy Research Centre estimates that investment capital of between US$414 and US$546 billion (in 2006 dollars) will be required over the period 2006-2030 for Australia’s energy sector as a whole. More than half of this is expected to be in resource extraction, and around a quarter in transportation, including rail, pipelines, and electricity transmission lines. Within the electricity sector, around half of the required investment is in generation, and a further 41 per cent in transmission. The Centre noted that the requirement could be even greater if Australia commits to accelerated climate change action, increasing the share of renewable energy in electricity generation.

Australia’s Energy Investment Requirements – 2006 to 2030

2030 (in 2006 US$ Billion)

Extraction 222-283

Transformation 72-95

Transportation 111-155

Distribution 9-12

TOTAL 414-546

Crude Oil and Petroleum Products 33-51

Natural Gas 180-235

Coal 105-130

Electricity and Heat 96-131

Generation 49-63

Transmission 39-58

Distribution 8-10

TOTAL 414-546

Note: This assessment and report was commissioned by the Australian Government Department of Resources, Energy and Tourism (RET) and jointly undertaken by Geoscience Australia and Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES). Sources: Australian Energy Resource Assessment, Table 2.5 Outlook for energy production by fuel, Page 32; Austrade


The Australian electricity industry generated 251 terawatt hours of electricity in the year to September 2010. Renewable energy accounted for 8.7 per cent of electricity generated. This is a strong rise from previous years and was largely due to the increased generation from hydro. More rainfall in key hydro catchments across the country provided a significant boost in hydroelectricity. The increased capacity of wind power across Australia also helped to boost generation. Although solar power still makes a relatively small contribution to the energy mix in Australia, the uptake of the technology has grown significantly in 2010. Growth in renewable energy has been underpinned by the Government-implemented Renewable Energy Target (RET) scheme, which is designed to deliver on the Government’s commitment to ensure that 20 per cent of Australia’s electricity supply will come from renewable sources by 2020.

Australia’s Estimated Annual Electricity Generation251 terawatt hours of electricity generated in the year to September 2010

Gwh = Gigawatt hours; PV = Photovoltaic.1. As solar water heating does not produce electricity it has not been included in the total generation figures.2. Total may not add up due to rounding.Sources: Clean Energy Council, Clean Energy Australia 2010, Figure 1. Estimated Annual Electricity Generation, Table 1. Annual Renewable Electricity Generation; Austrade

Annual Renewable Electricity Generation Per Year Fuel source (Estimated GWh)

Hydro 13,793

Wind 4,985

Bioenergy 2,500

Solar PV 464

Solar Thermal 4.4

Tidal and Wave 1.5

Geothermal 0.5

Solar Water Heating1 1,600

Renewable Total2 21,751

Fossil Fuels 91.33%

Renewables 8.67%


A recent Government-commissioned study forecast gross electricity generation in Australia to rise by an average of 1.8 per cent per year to 366 TWh in 2029-30. The share of renewables is predicted to grow to about 20 per cent by 2019-20 and remain at that level until the end of 2030. Within the category of non-renewable energy, the key change is a move from coal-fired generation to gas-fired generation. While coal is expected to continue to dominate the electricity fuel mix under the assumed policy setting that includes a Renewable Energy Target (RET), a 5 per cent emissions reduction target and other government initiatives, emissions pricing will lead to a preference for lower-emission electricity generation. Coal-fired electricity generation is expected to fall at an average rate of 0.6 per cent per year over the projection period, leading to a decline in its share to 43 per cent in 2029-30.

Australia’s Electricity Generation by Fuel

TWh = Terawatt hours.Note: This assessment and report was commissioned by the Australian Government Department of Resources, Energy and Tourism (RET) and jointly undertaken by Geoscience Australia and Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES). Sources: Australian Energy Resource Assessment, Chapter 2, Table 2.11, Page 38; Austrade

2029-30 2029-30 Average Annual Growth % TWh % 2007-08 to 2009-2030

Non-renewables 297.0 81.1 1.2

Coal 157.0 42.8 -0.6

Gas 135.0 36.8 5.0

Oil 5.0 1.5 0.0

Renewables 69.0 18.9 6.2

Hydro 13.0 3.5 0.2

Wind 44.0 12.1 11.6

Bioenergy 3.0 0.7 2.3

Solar 4.0 1.0 17.4

Geothermal 6.0 1.5 18.4

TOTAL 366.0 100.0 1.8


Australia’s total ICT spending is projected to be US$66 billion by 2013, with a compound annual growth rate (CAGR) of 8 per cent over the period 2003-17. Within Information and Communications Technology (ICT) services category, as percentage total ICT spend, Australia is second only to Japan (19.2 percent) in the Asia-Pacific region. The consumer sector is the largest, with total forecast value of US$22 billion, followed by financial services (US$6.5 billion), and Telecom (US$5.1 billion).

Australia’s Total Information and Communications Technology (ICT) Spending

CAGR = Compound Annual Growth Rate.ICT = Information and Communications Technology. Sources: The World Information Technology and Services Alliance (WITSA), Digital Planet 2010, The Global Information Economy, Page 70; Austrade

Share % Growth % CAGR % 2003 2005 2007 2009 2011 2013 2013 2009-13 2003-17

Total ICT Spending (US$ Mn) 29,504 39,926 47,380 49,335 57,876 63,321 100.0 28.3 7.9

ICT Category (US$ Mn):

Communications 16,320 23,414 27,934 29,197 35,743 38,234 60.4 31.0 8.9

Computer Services 6,141 7,489 8,774 9,045 9,906 11,136 17.6 23.1 6.1

Computer Hardware 4,827 6,040 7,050 7,277 7,958 9,042 14.3 24.3 6.5

Computer Software 2,217 2,982 3,622 3,816 4,269 4,908 7.8 28.6 8.3

Major ICT Segments (US$ Mn):

Consumer 9,984 14,334 16,566 17,258 21,204 22,403 35.4 29.8 8.4

Financial Services 3,532 4,441 5,054 5,251 5,810 6,496 10.3 23.7 6.3

Telecom 2,593 3,394 4,242 3,533 4,614 5,097 8.0 44.3 7.0

Services 2,125 2,916 3,472 3,592 4,144 4,716 7.4 31.3 8.3

Healthcare 1,694 2,413 3,081 3,300 3,805 4,310 6.8 30.6 9.8

Transportation 1,606 2,047 2,702 3,356 3,551 4,174 6.6 24.4 10.0

Manufacturing 1,787 2,071 2,472 2,613 2,949 3,375 5.3 29.1 6.6

Government 1,568 2,151 2,552 2,690 3,029 2,903 4.6 7.9 6.4

Retail Trade 1,171 1,500 1,796 1,864 2,076 2,320 3.7 24.4 7.1

Construction 548 748 928 1,078 1,289 1,490 2.4 38.2 10.5

Natural Resources 636 896 971 1,125 1,311 1,479 2.3 31.5 8.8

Energy and Utilities 770 1,018 1,136 1,186 1,293 1,451 2.3 22.3 6.5

Wholesale and Distribution 712 943 1,098 1,117 1,260 1,380 2.2 23.6 6.8

Hospitality, Hotels and Leisure 328 467 610 649 751 864 1.4 33.1 10.2

Educational Services 451 585 699 722 789 863 1.4 19.6 6.7


Australia has the 15th largest ICT market globally and the fifth largest in the Asia-Pacific region. This is a very sophisticated market where ICT companies can successfully develop solutions with global applicability. Australia is also the source of a number of distinctive technologies – especially in the areas of telecoms, financial services, digital content and e-health. The Australian ICT industry has become the focus for strategic foreign investment. The combination of a highly-skilled workforce and a tech-savvy consumer market of early adopters has delivered strong results to parent companies.

Asia Pacific Total Information and Communications Technology (ICT) Spending by CountryF – 2013Market share and growth rate (%)

China 38.0%

Japan 27.5%

India 8.6%

South Korea 6.8%

Australia 4.3%

Indonesia 2.2%

Taiwan 2.1%

Malaysia 2.0%

Other 8.4%Developed CAGR %Economies since 2003

Hong Kong 8.7

Australia 7.9

Singapore 6.3

New Zealand 5.9

South Korea 5.5

Japan 3.5

Taiwan 0.9

Developing CAGR %Economies since 2001

Bangladesh 29.7

Sri Lanka 23.3

India 20.7

Indonesia 18.9

Vietnam 16.6

China 14.9

Philippines 14.8

Pakistan 12.2

Thailand 10.7

Malaysia 7.7

F = Forecast.ICT = Information and Communications Technology.CAGR = Compound Annual Growth Rate. Sources: World Information Technology and Services Alliance, Digital Planet 2010, the Global Information Economy

Total Spending on ICT – Asia Pacific: US$1,457 Billion Australia: US$63 Billion


Australia’s engineering and construction activity is expected to be buoyant in the coming years, with the total value of the investment pipeline estimated to be around A$96 billion. This figure represents more than 10 times that of 10 years ago. Engineering construction in oil, gas, coal and other related minerals is expected to be the largest and most active, with total value of work yet to be undertaken estimated to be A$62 billion with a CAGR of 54 per cent between 2001 and 2011. Investments into mining related infrastructure are partly causing this strong growth as Australia’s mining industry has expanded rapidly over recent years in response to strong demand from Asian countries.

Australia’s Engineering Construction Activity Value of work yet to be done1 (A$ Billion)

0

10

20

30

40

50

60

70

80

90

100

Mar 2001 Mar 2002 Mar 2003 Mar 2004 Mar 2005 Mar 2006 Mar 2007 Mar 2008 Mar 2009 Mar 2010 Mar 2011

6 911

13

23 22

33

5249

86

96

Oil/Gas/Coal/Other Minerals (64.5%)Road/Highways/Subdivisions (10.9%)Electricity Generation/Transmission/Distribution (5.8%)Railways and Harbour (9.6%)Other2 (9.1%)

Construction % Share

1. The value of outstanding work for the project at the end of the period. Rise and fall and other cost variations can lead to increases or decreases in the value of work yet to be done.

2. Includes bridges, water storage supply, sewerage and drainage, pipelines, recreation, telecom, and other heavy industry.Sources: Australian Bureau of Statistics, Cat. No. 8762.0, Engineering Construction Activity, Australia, Mar 2011 (Released 06 July 2011); Austrade


Gross expenditure on research and development (GERD) reached A$27.7 billion in 2008-09. Australia’s business expenditure on research and development (BERD) makes up the largest portion of this, rapidly expanding to A$16.9 billion in 2009 from A$2.9 billion in 1993. This represents a compound growth rate of 11.7 per cent, well above the GDP growth rate of 6.6 per cent. Australia’s GERD as a percentage of GDP lifted to 2.21 per cent from 1. 45 per cent over the period, a strong indication of increased support by Government and industry towards innovation and research and development.

Australia’s Gross Expenditure on Research & Development (GERD)A$ Billion by Sector

0

5

10

15

20

25

30

1992–93 1994–95 1996–97 1998–99 2000–01 2002–03 2004–05 2006–07 2008–09

Gro

ss R

esou

rces

Dev

oted

to R

&D (A

$ Bi

llion

)

GER

D %

of G

DP

0.0

0.5

1.0

1.5

2.0

2.5

GERD % of GDP (RHS)

BERDGOVERDHERDPrivate non-profit

2.9

1.8

1.70.10

3.5

2.0

1.80.15

4.2

2.1

2.30.19

4.1

2.0

2.60.23

5.0

2.4

2.80.29

6.9

2.5

3.40.36

8.7

2.5

4.3

0.48

12.6

3.1

5.4

0.61

16.9

3.4

6.7

0.74

BERD = Business Expenditure on Research & Development.GOVERD = Government Expenditure on Research & Development.HERD = Higher Education Expenditure on Research & Development. Sources: Australian Bureau of Statistics, Cat. No. 8112, Research and Experimental Development, All Sector Summary, Australia, Table 1 Gross resources devoted to R&D, summary statistics – 1992-93 to 2008-09 (Released 1 October 2010); Austrade


Australia’s gross business expenditure on research and development (BERD) now exceeds 1.3 per cent of GDP, double that of a decade ago. This places Australia 11th on the Organisation for Economic Co-operation and Development (OECD) list of nations on this measure. Over the last decade, BERD has more than tripled to A$16.9 billion in 2009. Australia has a balanced approach to expenditure on Research & Development (R&D) indicating strong support from different areas of the economy. In addition to BERD, Government spend on R&D had Australia ranked 10th of the 30 OECD countries, and Australia’s higher education spend on R&D ranks it 11th of the 30 OECD countries.

OECD Business Expenditure on Research & Development1

As a percentage of GDP

NA = Not Available. 1. Except for Australia, the BERD/GDP ratios shown for OECD countries are sourced from Main Science and Technology Indicators, OECD. Ratios for Australia have been

calculated using the most recent ABS values for BERD and GDP. BERD/GDP ratios for some countries are projected or estimated as per the OECD source table. Countries are ranked by the most recent available BERD/GDP ratio.

Sources: Australian Bureau of Statistics Cat. No. 8104.0, – Research and Experimental Development, Businesses, Australia, 2008-09 (Released 23 September 2010); Austrade

Percentage Point Rank Country 2004-05 2005-06 2006-07 2007-08 2008-09 Change Since 2005

1 Sweden 2.67 2.62 2.79 2.66 2.78 0.112 Finland 2.42 2.47 2.46 2.51 2.77 0.353 Japan 2.38 2.54 2.63 2.68 2.69 0.314 South Korea 2.06 2.15 2.33 2.45 2.54 0.485 Switzerland 2.14 NA NA NA 2.21 0.076 USA 1.76 1.80 1.86 1.92 2.01 0.257 Denmark 1.69 1.68 1.66 1.78 1.91 0.228 Austria 1.53 1.71 1.74 1.79 1.89 0.369 Germany 1.74 1.72 1.77 1.77 1.85 0.1110 Iceland NA 1.43 1.59 1.47 1.45 NA11 Australia 0.94 1.04 1.16 1.26 1.34 0.4012 Luxembourg 1.43 1.35 1.42 1.32 1.32 -0.1113 Belgium 1.28 1.25 1.29 1.32 1.32 0.0414 France 1.36 1.30 1.32 1.29 1.27 -0.0915 UK 1.06 1.06 1.08 1.15 1.10 0.0416 Canada 1.18 1.15 1.11 1.04 1.00 -0.1817 Ireland 0.81 0.82 0.83 0.85 0.93 0.1218 Czech Republic 0.78 0.89 1.01 0.95 0.91 0.1319 Netherlands 1.03 1.01 1.01 0.97 0.89 -0.1420 Norway 0.87 0.82 0.82 0.88 0.87 0.0021 Portugal 0.28 0.31 0.47 0.62 0.76 0.4822 Spain 0.58 0.60 0.67 0.71 0.74 0.1623 Italy 0.52 0.55 0.55 0.61 0.60 0.0824 New Zealand NA 0.48 NA 0.51 NA NA25 Hungary 0.36 0.41 0.48 0.49 0.53 0.1726 Turkey 0.13 0.20 0.22 0.30 0.32 0.1927 Slovak Republic 0.25 0.25 0.21 0.18 0.20 -0.0528 Mexico 0.17 0.19 0.19 0.18 NA NA29 Poland 0.16 0.18 0.18 0.17 0.19 0.0330 Greece 0.17 0.18 0.18 0.16 NA NA TOTAL OECD 1.47 1.50 1.55 1.58 1.63 0.16

Skilled Workforce

employed Persons in the Services Sector 53

Workforce Skill Base comparisons 54

Selected demographic comparisons 55

Percentage employed Persons with Tertiary education by industry 56

foreign Born labour force as a Percentage of labour force 57

Australia’s labour force by Birthplace 58

employed Persons in Australia’s financial Services 59 and insurance Sector

Australia’s highly skilled and multilingual workforce ranks among the best in the world.

SecTioN 5Skilled Workforce

Section 5 Skilled Workforce > 53

Australia’s economy is service-based, with over 75 per cent of the total workforce employed by the services sector. Other major economies with similar levels of employment in services include the USA, UK, Norway, Ireland, Canada and the Netherlands.

Employed Persons in the Services Sector – 2010Percentage of total civilian employment (OECD Average: 66.9)

0

10

20

30

40

50

60

70

80

90

Luxe

mbo

urg

Net

herla

nds

USA U

K

Can

ada

Den

mar

k

Swed

en

Nor

way

Irela

nd

Aust

ralia

Belg

ium

Switz

erla

nd

Spai

n

New

Zea

land

Finl

and

Japa

n

Ger

man

y

Aust

ria

Sout

h Ko

rea

Gre

ece

Italy

Chi

le

Esto

nia

Hun

gary

Port

ugal

Slov

ak R

epub

lic

Cze

ch R

epub

lic

Slov

enia

Pola

nd

Turk

ey

86.7

81.3

81.2

78.9

78.1

78.0

77.8

77.7

76.0

75.5

75.3

73.8

72.6

72.5

72.3

70.6

70.0

69.8

68.5

67.8

67.6

66.4

65.7

64.5

61.2

59.7

58.8

58.8

58.0

48.6

Sources: Organisation for Economic Co-operation and Development, data extracted on 05 July 2011 from OECD.StatExtracts; Austrade


The calibre and capability of Australia’s workforce is supported by a strong tertiary education sector (ranked seventh in the world by the Institute for Management Development). In many critical categories, such as finance skills, foreign-skilled people, management education, and reliance on professional management, Australia’s workforce rates among the best in the world. Furthermore, Australia’s working environment has proven to be highly attractive to skilled workers, ranking seventh in the world for attracting and retaining talent.

Workforce Skill Base Comparisons

UNPD = United Nations Development Programme. Sources: (a) Institute for Management Development (IMD), Switzerland, IMD World Competitiveness Online 1995-2011 (Updated: May 2011, 59 economies); (b) World Economic Forum, Switzerland and Harvard University, Global Competitiveness Report 2011-12 (142 economies); (c) The United Nations Development Programme (UNDP), Human Development Report 2010 (169 economies), Statistical Annex, Table 1; Austrade

Australia China India Hong Kong Japan Singapore USA UK

World Competitiveness Yearbook 2011 Ranking(a) in:

Finance Skills 4 50 =10 =10 34 25 2 18

Foreign High Skilled People 4 16 19 7 44 3 2 6

Attracting and Retaining Talent 7 17 18 20 24 9 12 25

University Education 7 48 27 17 49 2 11 24

Management Education 9 40 13 14 44 4 6 27

Global Competitiveness Report 2011-12 Ranking(b) in:

Secondary Education Enrolment Rate 1 93 108 84 22 17 50 31

Reliance on Professional Management 10 46 53 34 15 11 17 6

Quality of Scientific Research Institutions 13 38 34 32 11 12 7 3

Tertiary Education Enrolment Rate 14 85 100 37 35 27 6 36

UNDP’s Human Development Report 2010 Ranking(c) in:

Human Development Index 2 89 119 21 11 27 4 26


Together, Sydney and Melbourne employ 230,000 people in financial services, more than Hong Kong (191,000) and Singapore (173,000). Sydney’s financial services workforce now accounts for 6.1 per cent of the city’s total employment. In education, both Sydney and Melbourne have around 5.2 per cent of their population enrolled as tertiary students, which is comparable to that of London (5.2), Tokyo (5. 4) and New York (6.3), and well above that of Hong Kong and Singapore.

Selected Demographic Comparisons – Mid Year 2010

1. Data for London represents 2009. 2. Data for Melbourne, Sydney, Hong Kong, Singapore and Tokyo represent 2009; Data for New York represents Fall 2010 and London academic year 2009-10. Student numbers

for Sydney and Melbourne refer to the states of New South Wales and Victoria respectively. Singapore data represents 2009 full-time enrolment.Sources: AUSTRALIA: Australian Bureau of Statistics (ABS) Cat. No. 3101.0, Australia Demographic Statistics, December 2010; ABS Cat. No. 6291.0.55.001 Labour Force, Australia, Detailed – Electronic Delivery May 2011, Table 02; Department of Education, Employment and Workplace Relations. USA: US Census Bureau, Preliminary Annual Estimates of Resident Population of Countries (Released March 2011); Bureau of Labour Statistics, Regional News Releases, New York State Department of Labour Quarterly Census of Employment and Wages; New York-New Jersey; New York Offi ce of Higher Education of Research and Information System. U K: Offi ce of National Statistics; Higher Education Statistics Agency, Headline and Summary Statistics. HONG KONG: Census and Statistics Department, Hong Kong in Figures 2011 Edition; Education Bureau. JAPAN: Statistics Division Bureau of General Affairs; SINGAPORE: Department of Statistics; Ministry of Manpower, Online Statistics, Labour Force; Ministry of Education, Education Statistics Digest 2010.

(‘000) Melbourne Sydney New York London Tokyo Hong Kong Singapore

Population 4,077 4,576 8,422 7,825 13,162 7,068 5,077

Labour Force 2,209 2,406 4,008 4,177 7,172 3,664 3,136

Employed Persons – All Industries 2,100 2,286 3,627 3,796 6,721 3,492 3,047

Finance and Insurance1 90 140 302 333 278 191 173

% of Total Employed Persons 4.3 6.1 8.3 8.8 4.1 6.0 5.7

Universities – Total Enrolled Students2 184 265 530 408 712 110 56

% of Total Population 4.5 5.8 6.3 5.2 5.4 1.6 1.1


Australia’s skilled workforce offers substantial multilingual and cross-cultural capabilities, and is characterised by a strong work ethic and positive approach to change. On average across all industry sectors, more than 26 per cent of Australia’s workforce holds a tertiary qualification. In many critical categories, such as education and training, scientific and technical services, and finance and insurance, 40 to 60 per cent of the workforce hold a Bachelor Degree or higher. The superior quality of our workforce is an important consideration for multi-national companies deciding to set up or expand their operations in Australia and the Asia-Pacific region.

0 10 20 30 40 50 60 70 80

Construction

Agriculture/Forestry/Fishing

Retail Trade

Accommodation/Food Services

Transport/ Postal/Warehousing

Manufacturing

Other Services

Rental/Hiring/Real Estate Services

Administrative/Support Services

Wholesale Trade

Mining

Electricity/Gas/Water/Waste Services

Arts/Recreation Services

Information Media/Telecommunications

Healthcare/Social Assistance

Public Administration/Safety

Financial/Insurance Services

Professional/Scientific/Technical Services

Education/Training

All Industry Average: 26.3%

7.7

8.1

11.2

11.9

12.8

13.8

14.5

16.3

17.1

20.3

24.5

26.7

28.5

37.1

39.3

39.5

41.3

53.6

62.3

Percentage Employed Persons with Tertiary Education by Industry1 – May 2010

1. In this statistical release, tertiary education refers to Bachelor Degree or higher. Sources: Australian Bureau of Statistics, Cat. No. 6227.0, Education and Work, May 2010, page 19 (Released 24 November 2010); Austrade


According to Organisation for Economic Co-operation and Development (OECD) International Migration Outlook 2011, Australia’s overseas-born labour force as a percentage of total labour force (26.9 per cent) ranks second after Luxembourg among all OECD countries. Australia is the most culturally diverse country in the Asia-Pacific region and one of the most multicultural countries in the world. This underpins Australia’s capacity to offer workforce solutions to organisations requiring multilingual staff.

Foreign Born Labour Force as a Percentage of Labour Force – 2009

Note: Data for Canada, New Zealand and Sweden represent 2006, and Finland 2008. Sources: Organisation for Economic Co-operation and Development, International Migration Outlook 2011, Key Statistics, Table A.2.2; Austrade

0 5 10 15 20 25 30 35 40 45 50

Poland

HungaryFinland

Denmark

PortugalNorway

Sweden

ItalyNetherlands

France

GreeceUK

BelgiumUSA

Austria

Spain

Ireland

Canada

New Zealand

Australia

Luxembourg

0.3

2.3

4.6

6.9

9.4

9.5

11.2

11.3

11.5

11.6

11.8

12.9

13.8

16.2

16.3

18.5

19.0

21.2

23.8

26.9

48.6


Around 28 per cent (over 3.3 million people) of Australia’s labour force were born overseas, with substantial representation from European (1.22 million) and Asian (1.16 million) countries.

Australia’s Labour Force by Birthplace – May 2011Total labour force as at May 2011: 12,030,100

AustralianBorn72.2%

OverseasBorn27.8%

Americas 1.3%

Sub-Saharan Africa 1.6%

North West Europe 1.2%

North Africa & The Middle East 1.0%

Southern & Central Asia 3.1%

North East Asia 2.9%

Southern & Eastern Europe 2.6%

South East Asia 3.7%

Oceania & The Antarctic 3.9%

UK & Ireland 6.3%

Sources: Australian Bureau of Statistics, Cat. No. 6105.0, Australian Labour Market Statistics, July 2011 (Released 05 July 2011), Data sources for tables 6291.0.55.001 data cubes LM6; Austrade


Australia has almost 420,000 people employed within its large and expanding finance sector. This multilingual and highly skilled workforce is one of Australia’s great strengths as a financial services centre in the Asian time zone. Excellent education and training facilities, a strong regulatory environment, sophisticated business infrastructure and a large skilled immigration intake enhance these workforce characteristics.

280

300

320

340

360

380

400

420

May

-199

4Se

p-19

94Ja

n-19

95M

ay-1

995

Sep-

1995

Jan-

1996

May

-199

6Se

p-19

96Ja

n-19

97M

ay-1

997

Sep-

1997

Jan-

1998

May

-199

8Se

p-19

98Ja

n-19

99M

ay-1

999

Sep-

1999

May

-200

0Se

p-20

00

Jan-

2000

May

-200

1Se

p-20

01

Jan-

2001

May

-200

2Se

p-20

02

Jan-

2002

May

-200

3Se

p-20

03

Jan-

2003

May

-200

4Se

p-20

04

Jan-

2004

May

-200

5Se

p-20

05

Jan-

2005

May

-200

6Se

p-20

06

Jan-

2006

May

-200

7Se

p-20

07

Jan-

2007

May

-200

8Se

p-20

08

Jan-

2008

May

-200

9Se

p-20

09

Jan-

2009

May

-201

0Se

p-20

10

Jan-

2010

Jan-

2011

May

-201

1

Employed Persons in Australia’s Financial Services and Insurance Sector(,000)

Sources: Australian Bureau of Statistics, Cat. No. 6291.0.55.003 – Labour Force, Australia, Detailed, Quarterly, May 2011 Table 04. Employed Persons by Industry (Released 16 June 2011); Austrade

Stable environment

risk of Political instability 61

index of economic Freedom World ranking 62

business environment 63

transparency international Corruption Perceptions index 64

Key indicators of Doing business 65

Global Corporate Governance ratings 66

Australia is one of the most politically stable countries in the world with strong rule of law, and transparent and well-functioning markets supported by a global best practice regulatory system.

SeCtion 6Stable Environment

Section 6 Stable Environment > 61

Australia was ranked one of the most politically stable countries in the world in 2011. For countries with populations greater than 20 million, Australia, along with Canada, has been consistently ranked in the top three each year in this category between 2007 and 2011.

Risk of Political Instability The higher the score the better

Survey question: The risk of political instability is very low. Institute for Management Development (IMD) World Competitiveness Yearbook Executive Opinion Survey based on an index from 0 to 10. The IMD included 59 economies in the 2011 survey. Sources: Institute for Management Development (IMD) World Competitiveness Online 1995-2011 (Updated: May 2011); Austrade

2007 Score

Austria 9.71Ireland 9.57Luxembourg 9.55Australia 9.47Denmark 9.44Switzerland 9.30New Zealand 9.30Sweden 9.18Finland 9.11Singapore 9.08Netherlands 8.95Germany 8.84Norway 8.82Canada 8.80Iceland 8.72Chile 8.69UK 8.67USA 8.56Portugal 8.52Greece 8.52Japan 8.30Hong Kong 8.24Belgium 7.77Malaysia 7.76France 7.69

2008 Score

Luxembourg 9.64Switzerland 9.62Singapore 9.40Australia 9.38Sweden 9.23Austria 9.20Canada 9.09New Zealand 8.84Iceland 8.83Ireland 8.82Denmark 8.81Netherlands 8.71Norway 8.63USA 8.54Germany 8.48Finland 8.48UK 8.34Portugal 8.24France 8.21Hong Kong 8.16Chile 8.05Jordan 8.00Brazil 7.90Czech Republic 7.41Spain 7.35

2009 Score

Finland 9.90Australia 9.54Denmark 9.49Switzerland 9.33New Zealand 9.27Sweden 9.21Norway 9.07Luxembourg 9.02Austria 8.98Chile 8.80Singapore 8.64Netherlands 8.57Canada 8.42Germany 8.33USA 8.05Hong Kong 7.71Brazil 7.69France 7.63China 7.62Ireland 7.60UK 7.40Spain 6.98Portugal 6.92Jordan 6.63Slovak Republic 6.48

2010 Score

Norway 9.36Luxembourg 9.25Australia 9.24Finland 9.20Denmark 9.11Austria 9.00Switzerland 8.93Canada 8.90Chile 8.86Singapore 8.78Sweden 8.77New Zealand 8.76Qatar 8.68Germany 8.49France 8.46USA 8.16Ireland 8.09Netherlands 7.82Hong Kong 7.49UK 7.41Poland 7.26Brazil 7.20Jordan 7.14China 7.12India 7.08

2011 Score

Norway 9.49Switzerland 9.49Chile 9.48New Zealand 9.41Finland 9.18Germany 9.11Australia 9.05Sweden 8.98Canada 8.95Denmark 8.94Luxembourg 8.92Qatar 8.91Austria 8.86Singapore 8.50USA 8.47Netherlands 8.33UK 8.25Brazil 8.17France 8.09Hong Kong 7.57Spain 7.43China 7.15Malaysia 7.09Estonia 7.06Colombia 6.96

Rank

12345678910111213141516171819202122232425


In 2011, Australia ranked third in the world for economic freedom, with a score of 82.5. The country’s overall score is well above the weighted averages of the Asia-Pacific region (57. 4) and the world (59.7). The Wall Street Journal and The Heritage Foundation commented that while many major economies have emerged from the recent economic downturn with growing debt burdens, Australia’s gross public debt stands at less than 25 per cent of GDP. The survey suggests that robust supervision and sound regulation enabled the banking system to cope well with recent financial turmoil. Australia has a strong tradition of openness to global trade and investment and transparent and efficient regulations. An independent judiciary protects property rights, and the level of corruption is low.

Index of Economic Freedom World Ranking1 – 2011The higher the score the better the ranking

0 20 40 60 80 100

Vietnam (139)China (135)India (124)

Indonesia (116)Philippines (115)

Brazil (113)Greece (88)

Italy (87)France (64)

Thailand (62)Malaysia (53)

UAE (47)

Spain (31)Taiwan (25)

Germany (23)Japan (20)

UK (16)Netherlands (15)Luxembourg (13)

Chile (11)Bahrain (10)

USA (9)Denmark (8)

Ireland (7)Canada (6)

Switzerland (5)New Zealand (4)

Australia (3)Singapore (2)Hong Kong (1)

Economic Freedom Score 80 to 100 Free 70 to 79.9 Mostly Free 60 to 69.9 Moderately Free 50 to 59.9 Mostly Unfree 0 to 49.9 Repressed

51.652.0

54.656.056.256.3

60.360.3

64.664.7

66.367.8

70.2South Korea (35) 69.8

70.871.8

72.874.574.7

76.277.4

77.777.8

78.678.7

80.881.982.382.5

87.289.7

1. The 2011 Index of Economic Freedom covers 183 countries and measures 10 separate components of economic freedom (Business Freedom, Trade Freedom, Fiscal Freedom, Government Spending, Monetary Freedom, Investment Freedom, Financial Freedom, Property Rights, Freedom from Corruption and Labour Freedom). The 10 component scores are equally weighted and averaged to get an overall economic freedom score for each economy. The number in brackets in the chart indicates the country’s world ranking.

Sources: The Heritage Foundation and Dow Jones & Company, Inc., Washington D.C. , 2011 Index of Economic Freedom; Austrade


Australia has one of the most transparent and efficient regulatory environments in the world and ranks in a number of prestigious international surveys as one of the most business-friendly economies. It has a business environment offering flexibility and adaptability, a strong legal and regulatory framework and strong corporate governance. This provides predictability and certainty for business planning.

Business Environment

Sources: (a) Institute for Management Development (IMD), Switzerland, World Competitiveness Yearbook 2011 (59 economies); (b) World Economic Forum, Switzerland and Harvard University, Global Competitiveness Report 2011-12 (142 economies); Austrade

Australia Hong Kong Singapore China Japan India USA UK

World Competitiveness Yearbook 2011 Ranking(a) in:

Management Practices – Ethical Practices 2 17 15 37 9 39 13 18

Societal Framework – Justice 2 11 12 43 16 33 18 14

Management Practices – Corporate Boards 2 4 8 26 34 25 31 38

Finance Management – Corporate Debt 3 9 21 36 25 16 11 37

Institutional Framework – Legal and Regulatory Framework 3 2 1 31 34 22 14 30

Management Practices – Health, Safety & Environment Concerns 3 31 21 37 6 47 19 18

Attitudes and Values – Flexibility & Adaptability 3 2 23 50 54 11 17 35

Business Legislation – Competition Legislation 4 30 23 47 14 37 17 22

Business Legislation – Protectionism 6 8 27 46 41 32 31 25

Global Competitiveness Report 2011-12 Ranking(b) in:

Efficacy of Corporate Board 3 31 5 77 24 80 26 11

Soundness of Bank 4 10 5 64 72 32 90 111

Redundancy Costs 6 19 6 118 6 93 1 42

Regulation of Securities Exchanges 10 11 2 53 36 26 48 28

Ethical Behaviour of Firms 11 15 4 57 16 86 29 12

Judicial Independence 13 15 20 63 18 51 36 11


Transparency International’s Corruption Perceptions Index 2010 ranked Australia equal eighth with Switzerland. This index ranks countries in terms of the degree to which corruption is perceived to exist among public officials and politicians. The top 10 also include Scandinavian countries, the Netherlands, Canada, Singapore and New Zealand.

Transparency International Corruption Perceptions Index1 – 2010

1. The 2010 Corruption Perceptions Index (CPI) measures the degree to which public sector corruption is perceived to exist in 178 countries around the world. It scores countries on a scale from 10 (very clean) to 0 (highly corrupt). The 2010 results are drawn from 13 surveys and assessments published between January 2009 and September 2010.

Sources: Transparency International Corruption Perceptions Index 2010 (178 economies); Austrade

Rank Territory Score

1 Denmark 9.3

1 New Zealand 9.3

1 Singapore 9.3

4 Finland 9.2

4 Sweden 9.2

6 Canada 8.9

7 Netherlands 8.8

8 Australia 8.78 Switzerland 8.7

10 Norway 8.6

11 Iceland 8.5

11 Luxembourg 8.5

13 Hong Kong 8.4

14 Ireland 8.0

15 Austria 7.9

15 Germany 7.9

17 Barbados 7.8

17 Japan 7.8

19 Qatar 7.7

20 UK 7.6

21 Chile 7.2

22 Belgium 7.1

22 USA 7.1

24 Uruguay 6.9

25 France 6.8


26 Estonia 6.5

27 Slovenia 6.4

28 Cyprus 6.3

28 UAE 6.3

30 Israel 6.1

30 Spain 6.1

32 Portugal 6.0

33 Botswana 5.8

33 Puerto Rico 5.8

33 Taiwan 5.8

36 Bhutan 5.7

37 Malta 5.6

38 Brunei 5.5

39 South Korea 5.4

39 Mauritius 5.4

41 Costa Rica 5.3

41 Oman 5.3

41 Poland 5.3

44 Dominica 5.2

45 Cape Verde 5.1

46 Lithuania 5.0

46 Macau 5.0

48 Bahrain 4.9

49 Seychelles 4.8

50 Hungary 4.7


50 Jordan 4.7

50 Saudi Arabia 4.7

53 Czech Republic 4.6

54 Kuwait 4.5

54 South Africa 4.5

56 Malaysia 4.4

56 Namibia 4.4

56 Turkey 4.4

59 Latvia 4.3

59 Slovakia 4.3

59 Tunisia 4.3

62 Croatia 4.1

62 FYR Macedonia 4.1

62 Ghana 4.1

62 Samoa 4.1

66 Rwanda 4.0

67 Italy 3.9

68 Georgia 3.8

69 Brazil 3.7

69 Cuba 3.7

69 Montenegro 3.7

69 Romania 3.7

73 Bulgaria 3.6

73 El Salvador 3.6

73 Panama 3.6


73 Trinidad and Tobago 3.6

73 Vanuatu 3.6

78 China 3.5

78 Colombia 3.5

78 Greece 3.5

78 Lesotho 3.5

78 Peru 3.5

78 Serbia 3.5

78 Thailand 3.5

85 Malawi 3.4

85 Morocco 3.4

87 Albania 3.3

87 India 3.3

87 Jamaica 3.3

87 Liberia 3.3

91 Bosnia and Herzegovina 3.2

91 Djibouti 3.2

91 Gambia 3.2

91 Guatemala 3.2

91 Kiribati 3.2

91 Sri Lanka 3.2

91 Swaziland 3.2

98 Burkina Faso 3.1

98 Egypt 3.1

98 Mexico 3.1


Australia has been ranked as one of the most business-friendly economies in the world, offering a business environment that is both stable and flexible. Australia has been ranked as the second fastest place in the world to start a business. The country has a robust regulatory framework that offers security and integrity, while promoting efficiency through the avoidance of time consuming business processes.

Key Indicators of Doing Business – 2011

1. A procedure is defined as any interaction of the company founders with external parties (for example, government agencies, lawyers, auditors or notaries). 2. The index measures the degree to which collateral and bankruptcy laws protect the rights of borrowers and lenders and thus facilitate lending. 3. The index measures rules and practices affecting the coverage, scope and accessibility of credit information available through either a public credit registry or a private credit bureau. 4. A procedure is defined as any interaction, required by law or commonly used in practice, between the parties or between them and the judge or court officer. 5. The recovery rate is recorded as cents on the dollar recouped by creditors through reorganisation, liquidation or debt enforcement. Sources: International Finance Corporation and the World Bank, Doing Business 2011: Making a Difference for Entrepreneurs; Austrade

Getting Credit Enforcing Contracts Closing a BusinessStarting a Business Procedures1 Time (number) (days)

1 5 1 1 2 2 3 6 3 3 5 7 6 6 6 8 6 20 6 15 6 13 6 6 7 32 8 22 8 23 8 14 8 15 9 15 9 47 9 17 9 44 10 47 12 29 14 38 15 120 15 38

Strength of Depth of credit legal rights information index2 (0-10) index3 (0-6)

6 6 10 5 9 5 10 5 10 4 7 4 3 5 6 5 8 5 4 5 9 6 8 6 4 5 4 5 7 6 7 6 4 5 7 6 3 4 10 6 8 5 6 5 8 4 6 4 3 5 3 3

Procedures4 Time (number) (days)

36 570 30 216 28 395 24 280 21 150 29 331 41 1,210 26 514 31 417 47 510 28 399 32 300 36 479 36 480 30 360 35 230 49 537 30 394 40 570 30 585 34 295 39 515 46 1,420 34 406 45 616 37 842

Recovery rate5 (cents on the Time dollar) (years)

91.2 0.8 79.1 1.3 81.8 1.0 81.2 1.1 91.3 0.8 45.2 1.9 58.0 1.8 81.9 1.1 47.5 3.0 82.2 1.9 88.6 1.0 81.5 1.5 43.5 2.7 28.2 4.5 92.7 0.6 81.7 1.5 11.2 5.1 53.1 1.2 13.2 5.5 39.8 2.3 18.6 5.0 76.3 1.0 16.3 7.0 36.4 1.7 17.1 4.0 4.5 5.7

Economy

CanadaNew ZealandAustraliaHong KongSingaporeFranceItalyNetherlandsSwitzerlandTaiwanUKUSAThailandChileJapanSouth KoreaUAEGermanyIndonesiaMalaysiaVietnamSpainIndiaChinaBrazilPhilippines


Governance Metrics International (GMI) reports that Australia’s corporate governance is among the best in the world. Australia was placed sixth in the 2010 survey. Australia’s score is well above the global average and ahead of many economies in the Asia-Pacific region.

Global Corporate Governance Ratings – September 2010The higher the rating the better (Average = 4.88)

Sources: Governance Metrics International, Global Corporate Governance Country Ratings, 27 September 2010; Austrade

0

1

2

3

4

5

6

7

8

UK

Can

ada

Irela

ndU

SA

New

Zea

land

Au

stra

lia

Net

herla

nds

Finl

and

Sout

h Af

rica

Swed

en

Switz

erla

ndG

erm

any

Aust

riaIta

ly

Pola

ndN

orw

aySi

ngap

ore

Den

mar

k

Fran

ce

Indi

aBe

lgiu

mG

reec

eM

alay

sia

Thai

land

Port

ugal

H

ong

Kong

Sp

ain

Sout

h Ko

rea

Braz

il Ru

ssia

Taiw

an

Isra

el

Turk

ey

Chi

na

Japa

n In

done

sia

Mex

ico

Chi

le

7.60

7.36

7.21

7.16

6.70

6.65

6.45

6.38

6.09

5.88

5.86

5.80

5.77

5.25

5.11

4.90

4.82

4.79

4.70

4.54

4.35

4.25

4.21

4.20

4.14

4.06

3.97

3.93

3.91

3.90

3.84

3.79

3.62

3.37

3.30

3.14

2.42

2.13

Aver

age

Ove

rall

Ratin

g

strongeconomy

Worldwide Quality of Life Index 68

Human Development Index 69

oecD Better Life Index – Life satisfaction 70

oecD Better Life Index – Life expectancy 71

Health and environment – Pollution Problems 72

Australia’s desirable quality of life is highly attractive to skilled professionals and global companies looking to establish a regional headquarters.

QuaLIty of LIfe

sectIon 7Quality of Life

Section 7 Quality of Life > 68

In 2011, Australia’s quality of life remained the fourth highest in the world out of 59 key economies. Australian cities are regularly judged to be among the most liveable in the world by a range of international surveys. In the Economist Intelligence Unit Liveability Ranking 2011, four of Australia’s mainland capital cities were ranked in the top ten liveable cities in the world: Melbourne (first), Sydney (sixth), Perth (eighth) and Adelaide (eighth).

Worldwide Quality of Life Index The higher the score the better

Survey question: Quality of life is high. Institute for Management Development (IMD), World Competitiveness Yearbook (WCY) Executive Opinion Survey based on an index from 0 to 10. The IMD included 59 economies in the 2011 survey. Sources: IMD World Competitiveness Online 1995-2011 (Updated: May 2011); Austrade

2007 Score

Austria 9.71Iceland 9.56Switzerland 9.45Norway 9.25Australia 9.24Luxembourg 9.21New Zealand 9.10Denmark 9.08Canada 8.96Singapore 8.96Netherlands 8.74Sweden 8.65Germany 8.54Finland 8.49Belgium 8.47Ireland 8.00USA 7.90Spain 7.85France 7.73Czech Republic 7.31Israel 7.21Malaysia 7.06Chile 7.03Italy 6.97UK 6.95

2008 Score

Iceland 9.72Switzerland 9.71Austria 9.64Australia 9.28Canada 9.27Luxembourg 9.21Norway 9.16Sweden 9.08Denmark 8.98Netherlands 8.91New Zealand 8.91Germany 8.89Singapore 8.89Belgium 8.71USA 8.53Ireland 8.39France 8.17Finland 8.12Spain 7.71Czech Republic 7.59Malaysia 7.43UK 7.16Israel 6.91Japan 6.90Italy 6.86

2009 Score

Switzerland 9.70Austria 9.57Norway 9.56Denmark 9.36Canada 9.21Australia 9.20Sweden 9.20Luxembourg 9.13Finland 9.07Germany 9.05Netherlands 8.94New Zealand 8.88Belgium 8.79Singapore 8.45France 8.26USA 8.18Qatar 8.13Ireland 8.05Spain 7.69UK 7.68Malaysia 7.52Czech Republic 7.32Israel 7.24Japan 7.05Slovenia 6.92

2010 Score

Austria 9.81Norway 9.59Switzerland 9.52Australia 9.26Luxembourg 9.24Denmark 9.16Canada 9.15Netherlands 9.10Sweden 8.89Germany 8.78Belgium 8.78New Zealand 8.78France 8.77Iceland 8.61Finland 8.46Singapore 8.23Malaysia 7.98USA 7.94Ireland 7.73Qatar 7.73Spain 7.50UK 7.37Czech Republic 7.33Israel 7.13Japan 6.94

2011 Score

Switzerland 9.66Austria 9.65Norway 9.63Australia 9.40Denmark 9.21Germany 9.17Belgium 9.17Luxembourg 9.09Sweden 9.02Netherlands 8.93Canada 8.90Finland 8.78New Zealand 8.71Iceland 8.58USA 8.15Singapore 8.04France 8.00Qatar 7.99Israel 7.96Spain 7.83UAE 7.71Ireland 7.61Malaysia 7.45Czech Republic 7.42UK 7.37

Rank

12345678910111213141516171819202122232425


Australia has the second best quality of life in the world, according to the United Nations Development Program’s Human Development Report 2010. This Index is a comparative measure of life expectancy, literacy, education and standards of living across 182 economies. The superior ranking of Australia in the Human Development Index (HDI), is a powerful drawcard for skilled professionals and their families.

Human Development Index – 2010 The higher the index the better the quality of life

Sources: United Nations Development Programme, Human Development Report 2010, Human Development Statistical Tables; Austrade

Rank Country Index

1 Norway 0.9382 Australia 0.9373 New Zealand 0.9074 USA 0.9025 Ireland 0.8956 Liechtenstein 0.8917 Netherlands 0.8908 Canada 0.8889 Germany 0.88510 Sweden 0.88511 Japan 0.88412 South Korea 0.87713 Switzerland 0.87414 France 0.87215 Israel 0.87216 Finland 0.87117 Iceland 0.86918 Belgium 0.86719 Denmark 0.86620 Spain 0.863

Rank Country Index

21 Hong Kong 0.86222 Greece 0.85523 Italy 0.85424 Luxembourg 0.85225 Austria 0.85126 UK 0.84927 Singapore 0.84628 Czech Republic 0.84129 Slovenia 0.82830 Andorra 0.82431 Slovakia 0.81832 Malta 0.81533 UAE 0.81534 Estonia 0.81235 Cyprus 0.81036 Brunei 0.80537 Hungary 0.80538 Qatar 0.80339 Bahrain 0.80140 Poland 0.795

Rank Country Index

41 Portugal 0.79542 Barbados 0.78843 Bahamas 0.78444 Chile 0.78345 Lithuania 0.78346 Argentina 0.77555 Saudi Arabia 0.75256 Mexico 0.75057 Malaysia 0.74465 Russia 0.71973 Brazil 0.69983 Turkey 0.67988 China 0.66392 Thailand 0.65497 Philippines 0.638100 Mongolia 0.622108 Indonesia 0.600110 South Africa 0.597113 Vietnam 0.572119 India 0.519

Top 40 HDI Rankings Other HDI Rankings


Australians are among the happiest people in the world, according to an index measuring quality of life compiled by the Organisation for Economic Co-operation and Development (OECD). The Better Life Index compares all 34 OECD countries against 11 criteria including income, health, education, work/life balance, safety, governance, environment, housing and life satisfaction. The OECD concludes that Australians performed exceptionally well in key measures of wellbeing. It finds household income in Australia exceeds the OECD average, as does life expectancy and general life satisfaction.

0

1

2

3

4

5

6

7

8

9

10

Den

mar

k

Can

ada

Nor

way

Aust

ralia

Net

herla

nds

Swed

en

Switz

erla

ndFi

nlan

d

Isra

el

Aust

ria

Irela

nd

New

Zea

land

USA

Luxe

mbo

urg

UK

Belg

ium

Icel

and

Fran

ce

Mex

ico

Ger

man

y

Chi

le

Italy

Cze

ch R

epub

lic

Spai

n

Japa

n

Sout

h Ko

rea

Slov

ak R

epub

lic

Slov

enia

Gre

ece

Pola

ndTu

rkey

Esto

nia

Port

ugal

Hun

gary

10.0

0

9.68

9.35

9.03

9.03

9.03

9.03

8.71

8.71

8.39

8.39

8.06

8.06

7.74

7.42

7.10

7.10

6.77

6.77

6.45

6.13

5.48

4.84

4.84

4.52

4.52

4.52

4.52

3.55

3.55

2.58

1.29

0.65

0.00

OECD Better Life Index – Life Satisfaction 2010

Sources: Organisation for Economic Co-operation and Development, Your Better Life Index, (Released 13 May 2011); Austrade


Australia performs exceptionally well in measures of well-being, and ranks among the top countries in a large number of categories in the Better Life Index. In terms of health, life expectancy at birth in Australia is 81.5 years, more than two years above the OECD average.

OECD Better Life Index – Life Expectancy 2010 The higher the score, the greater the life expectancy

0

1

2

3

4

5

6

7

8

9

10 10.0

0

0.00

Japa

n

Switz

erla

nd

Aust

ralia

Italy

Icel

and

Spai

n

Swed

en

Isra

el

Fran

ce

Can

ada

Luxe

mbo

urg

Nor

way

Aust

ria

New

Zea

land

Ger

man

y

Net

herla

nds

Gre

ece

Finl

and

Irela

nd

Sout

h Ko

rea

Belg

ium UK

Port

ugal

Den

mar

k

Slov

enia

USA

Chi

le

Cze

ch R

epub

lic

Pola

nd

Mex

ico

Slov

ak R

epub

lic

Esto

nia

Hun

gary

Turk

ey

9.45

8.68

8.68

8.46

8.35

8.35

8.24

8.13

7.80

7.69

7.69

7.58

7.47

7.25

7.25

7.03

6.92

6.92

6.92

6.81

6.70

6.26

5.71

5.71

4.73

4.62

4.07

2.20

1.65

1.32

0.33

0.22

Sources: Organisation for Economic Co-operation and Development, Your Better Life Index, (Released 13 May 2011); Austrade


Australia’s ranking in Pollution Problems confirms Australia’s attractiveness as a healthy environment. Australia does not suffer the same levels of pollution as those experienced in other places in the Asia-Pacific region.

Health and Environment – Pollution Problems – 2011 The higher the score the better

Surveyed question: Pollution problems do not seriously affect your economy. Institute for Management Development (IMD), World Competitiveness Yearbook (WCY) executive survey based on an index from 0 to 10. The IMD included 59 economies in the 2011 survey. Sources: IMD World Competitiveness Online 1995-2011 (Updated: May 2011); Austrade

Rank Economy Score

1 Iceland 8.892 Finland 8.533 Austria 8.444 Australia 8.245 Norway 8.186 Denmark 8.077 Sweden 8.008 Germany 7.949 Switzerland 7.9310 Ireland 7.6511 Singapore 7.3212 Japan 7.2613 Portugal 7.2414 New Zealand 7.1815 Canada 7.1716 Netherlands 7.1117 Belgium 6.9118 UK 6.8519 USA 6.7120 Luxembourg 6.54

Rank Economy Score

21 Czech Republic 6.5322 Malaysia 6.4923 Taiwan 6.4724 Spain 6.3125 Israel 6.1326 France 6.1227 Lithuania 6.0928 Estonia 6.0629 Greece 5.8130 Croatia 5.8031 Turkey 5.7932 UAE 5.7633 Italy 5.6834 Chile 5.6535 Slovak Republic 5.5736 Slovenia 5.5437 Qatar 5.5338 Jordan 5.3439 Colombia 5.3140 Hungary 5.30

Rank Economy Score

41 Poland 5.2942 Thailand 5.1543 Venezuela 5.0644 Russia 5.0445 Romania 4.9346 Argentina 4.9147 Brazil 4.8248 South Korea 4.7149 Hong Kong 4.5550 Ukraine 4.5351 South Africa 4.4352 Bulgaria 4.3153 Philippines 4.1854 India 4.1455 Kazakhstan 4.1256 Indonesia 3.9557 Mexico 3.8258 Peru 3.6959 China 3.29

About the Australian Trade Commission

ABN 11 764 698 227 Date: September 2011 ISBN: 978-0-9807059-4-2

DISCLAIMERThis report has been prepared as a general overview. It is not intended to provide an exhaustive coverage of the topic. The information is made available on the understanding that the Australian Trade Commission (Austrade) is not providing professional advice. Therefore, while all care has been taken in the preparation of this report, Austrade does not accept responsibility for any losses suffered by persons relying 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 their own discretion and Austrade strongly recommends the reader obtain independent professional advice prior to acting on this information.Austrade’s role includes to facilitate engagement by Australian financial services exporters in markets outside Australia. Austrade is not a promoter of any financial services products or investments and does 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.

The Australian Trade Commission – Austrade – is the Australian Government’s trade and investment development agency.

Through Austrade’s network of offices in over 50 countries, we assist Australian companies to succeed in international business, attract productive foreign direct investment into Australia and promote Australia’s education sector internationally.

Austrade is the first national point-of-contact for all investment enquiries. Working in partnership with business and government, Austrade can provide your company with the information needed to establish or expand a business in Australia.

Austrade can also help by connecting you with the right industry and government contacts as well as providing information on investment regulations and government assistance programs.

For more information: visit www.austrade.gov.au/invest or email [email protected]

Benchmark Report 2011

Documents

Transcript of Benchmark Report 2011