BENCHMARK REPORT 2020
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BENCHMARK REPORT 2020
Transcript of BENCHMARK REPORT 2020
BENCHMARK REPORT 2020
Why Australia 3
1. Resilient Economy 4
2. Dynamic Industries 14
3. Innovation and Skills 27
4. Global Ties 37
5. Strong Foundations 48
CONTENTS
Why Australia Benchmark Report 2020 2
Australia finished 2019 strongly with a balanced
budget, relatively low global debt levels, a AAA global
credit rating and historically low unemployment.
2020 of course has presented global challenges.
From a strong foundation, Australia’s effective and
proactive response to the global economic downturn
has protected the Australian economy. Australia’s
ability to adapt is our great strength, and it helps
us meet current challenges. We have a flexible and
resilient economy, strong institutions and open
markets, which help us respond effectively to all
manner of disruptions.
Australia’s network of 14 free trade agreements
– covering approximately 70 per cent of trade and
working towards 90 per cent – gives Australian
business preferential access to fast-growing
markets, including in the proximate Asian region.
Before lockdowns interrupted global supply chains,
fast-increasing exports created record trade
surpluses for Australia.
In new industries like fintech and agtech, Australian
businesses are pioneering new ways of adapting
technology. In the biotech sector, our research
teams attract global investment.
Meanwhile, our minerals reserves create fresh
prospects for investment and growth. New sectors
include lithium mining and processing for electric
vehicle batteries, and rare-earth minerals.
Perhaps our greatest asset is our diverse, highly
skilled and entrepreneurial workforce. As one of the
most multicultural and multilingual countries in the
world, we use our global ties to connect with the
best the world has to offer.
Australia remains globally focused and open for
business.
Senator the Hon Simon Birmingham
Minister for Trade, Tourism and Investment
WHY AUSTRALIA
Strong foundations and an effective COVID-19 response position Australia
as a preferential location for productive foreign direct investment.
Why Australia Benchmark Report 2020 3
01 RESILIENT ECONOMY
Australia’s A$2 trillion economy 6
High living standards 7
A rock-solid economy since 1961 8
Australia outpaces advanced economies 9
Proximity to Asia’s powerhouse economies 10
A diversified, services-based economy 11
Australia’s service industries power ahead 12
Low government debt 13
Why Australia Benchmark Report 2020 4
01 RESILIENT ECONOMY
A resilient economy,
based on strong exports,
vibrant services and sound
institutions.
In turbulent times, the Australian economy
benefits from rock-solid foundations. Prior
to 2020, the economy experienced just
two years of negative growth during the
previous six decades. And since the last
recession in 1991, our growth rate has
averaged 3.2 per cent, which is higher than
every other major developed economy in
the world. Australia’s trade links with near
neighbours are a major factor. The Asia
region is ultra-fast growing, and Australia’s
network of 14 free trade agreements
across Asia and the Pacific have helped agile
Australian businesses to rapidly expand.
While over 80 per cent of Australia’s
economy is services-based, global
leadership in several key industries powers
our exports. Asian markets are hungry
for Australian minerals and energy.
Our agricultural industry is highly
efficient, and our clean, green produce
fetches premium prices in Asian markets.
Underpinning everything is our sound
financial system, strong fiscal position
and low government debt. This permits
strategic investment in future industries
and infrastructure.
Why Australia Benchmark Report 2020 5
World’s 20 largest economies, 2019
Percentage share of total world nominal GDP in US$
Notes: Rest of the world 19%
GDP of the world’s 194 economies: US$86,599 billion in 2019
GDP of 20 largest economies: US$70,118 billion (81% of world’s GDP)
GDP of ASEAN–10 economies: US$3,115 billion (3.6% of world’s GDP)
Sources: International Monetary Fund, World Economic Outlook Database,
October 2019; Austrade
Australia’s A$2 trillion economy
Australia held its place as the world’s 14th
largest economy in 2019, despite being home
to just 0.3 per cent of the global population.
Australia’s nominal gross domestic product
(GDP) is estimated at almost A$2 trillion
(US$1.4 trillion), which accounts for
approximately 1.6 per cent of the global
economy. In Australian dollars, the value of
total national production has more than tripled
in just two decades.
Germany 4.5%
China 16.3%
Australia 1.6%
India 3.4%
Italy 2.3%
France 3.1%
Turkey 0.9%
Spain 1.6%
UK 3.2%
Netherlands 1.0% Japan 6.0%
Russia 1.9%US 24.8%
Canada 2.0%
Switzerland 0.8%
Brazil 2.1%
Mexico 1.5%
Korea 1.9%
Saudi Arabia 0.9%
ASEAN 3.6%
(incl Indonesia 1.3%)
Why Australia Benchmark Report 2020 6
Sources: International Monetary Fund, World Economic Outlook Database,
October 2019; Austrade
GDP per person for selected economies, 1991–2019High living standards
Australian living standards have grown rapidly
over the past two decades. In 1991, Australians
had a lower GDP per head than France, Germany
and the UK. After growing 189 per cent in
almost three decades, Australia’s GDP has now
overtaken France, Germany and the UK, as well
as Canada and Sweden. In 2019, GDP per person
reached a high, developed-world level of around
US$54,000.
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Increase to 2019
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Why Australia Benchmark Report 2020 7
Notes: 1. AAGR = Average annual growth rate.
Sources: Australian Bureau of Statistics Cat. No. 5206.0 Cat. No. Australian
National Accounts: National Income, Expenditure and Product, Table 1
(Released 3 June 2020); Austrade
Australia’s economic growth since 1961
GDP, annual percentage change
A rock-solid economy since 1961
Prior to 2020, Australia experienced just two
years of negative growth over the previous six
decades – in 1983 and 1991. This performance
is unmatched by any other major, advanced
economy in the world. Since 1992, Australia’s
annual GDP growth rate has held steady, with an
average increase of 3.2 per cent over 28 years.
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AAGR1 = 3.9%
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Why Australia Benchmark Report 2020 8
Notes: 1. The IMF considers the following markets as part of the ‘Advanced
economies’ group: Australia, Austria, Belgium, Canada, Cyprus, the Czech
Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hong Kong
SAR, Iceland, Ireland, Israel, Italy, Japan, Korea, Latvia, Lithuania, Luxembourg,
Macao SAR, Malta, Netherlands, New Zealand, Norway, Portugal, Puerto Rico,
San Marino, Singapore, Slovak Republic, Slovenia, Spain, Sweden, Switzerland,
Taiwan SAR, United Kingdom, and United States.
Sources: International Monetary, World Economic Outlook Database,
April 2020; Austrade
Economic growth by country/region
Growth of real GDP, 1992–2019
Australia outpaces advanced economies
At 3.2 per cent per year, Australian GDP growth
since 1992 has outmatched most comparable
economic regions, including the Euro area
(1.6 per cent p.a.), UK (2.1 per cent p.a.) and the
US (2.6 per cent p.a.). The Australian economy
also outpaced G7 countries as a group, and the
average growth rate of the world’s advanced
economies.1
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Euroarea
Major advanced
economies (G7)
UK Emerging and
developing Europe
Advancedeconomies
US India Emerging and
developing Asia
China ASEAN-5 World JapanLatin America and the
Caribbean
Australia
1.61.9
2.1 2.2 2.2
2.6 2.7
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Why Australia Benchmark Report 2020 9
Notes: 1. The bar represents the value of the regional gross domestic
product at current prices based on purchasing power parity. 2. To avoid
double counting with NIEs and ASEAN, Singapore was excluded. 3. Newly
Industrialised Economies (NIEs): Singapore, Hong Kong SAR, Korea and Taiwan.
Sources: International Monetary Fund, World Economic Outlook Database
April 2020 (Released 15 April 2020); Austrade
Asian economic growth
GDP based on purchasing power parity (PPP)1
Proximity to Asia’s powerhouse economies
As a developed economy, Australia benefits
from being part of an ultra-fast growing region
of the world. Most of Australia’s principal
export partners are located in Northeast Asia
and Southeast Asia, and a network of 14 free
trade agreements gives Australian companies
preferential access to these fast-growing
markets.
Countries & regions in Asia
Compound annual growth rate (%) 1980–2019
China and India 10.9
Japan, Australia and New Zealand 4.7
ASEAN-92 8.0
Newly Industrialised Economies3 8.4
Other developing Asia 7.8
Average of Asia incl. Australia and New Zealand 8.4
World average 6.3
1980 1984 1989 1994 1999 2009 20142004 2019
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Why Australia Benchmark Report 2020 10
Australia’s real gross value added (GVA) by industry
Total ending December 2019, as a percentage of total industry
A diversified, services-based economy
Australia’s resilience is underpinned by a
diversified mix of successful industries. In 2019,
the country’s services and goods industries
accounted for 82 per cent and 18 per cent
of real gross value added (GVA) respectively.
The largest contributor was the financial
services sector (generating 9.3 per cent of
GVA), followed by mining, healthcare and
construction. Technology-driven sectors –
including professional services, education and IT
– are worth over 15 per cent of total economic
production.
Notes: 1. Goods comprise agriculture, manufacturing and mining.
2. Ownership of dwellings is not classified as a good or service.
Sources: Australian Bureau of Statistics Cat. No. 5206.0 Australian National
Account, March 2020, Table 6 Gross Value Added by Industry, Chain volume
measures (Released 3 June 2020); Austrade
Public Administration and Safety 5.6%
Education and Training 5.1%
Transport, Postal and Warehousing 4.8%
Administrative and Support Services 3.7%
Rental, Hiring and Real Estate Services 3.2%
Electricity, Gas, Water and Waste Services 2.6%
Accommodation and Food Services 2.4%
Information Media and Telecommunications 2.6%
Ownership of Dwellings2 8.9%
Other 1.9%
Wholesale Trade 4.0%
Retail Trade 4.4%
Mining1 9.3%
Manufacturing1 5.9%
Agriculture, Forestry and Fishing1 2.2%
Financial and Insurance Services 9.3%
Construction 7.6%
Healthcare and Social Assistance 8.0%
Professional, Scientific and
Technical Services 7.5%
Arts and Recreation Services 0.9%
Total GVA = A$1,778bn
Why Australia Benchmark Report 2020 11
Notes: 1. Goods comprise agriculture, manufacturing and mining. 2. Ownership
of dwellings is not classified as a good or service.
Sources: Australian Bureau of Statistics Cat. No. 5206.0 Australian National
Account, March 2020, Table 6 Gross Value Added by Industry, Chain volume
measures (Released 3 June 2020); Austrade
Growth by industry in Australia’s real gross value added
Compound annual growth rate, 1991–2019
Australia’s service industries power ahead
The Australian services sector has grown
strongly over the past two and a half decades.
The information, media and telecommunications
sector (5.1 per cent) has recorded the highest
compound annual growth rate (CAGR) since
1991, followed by professional, scientific and
technical services (4.9 per cent), and healthcare
and social assistance (4.5 per cent). Overall,
Australia’s services sector has expanded at a
CAGR of 3.4 per cent since 1991, outpacing the
2.4 per cent CAGR of the goods sector, and the
3.2 per cent CAGR of the Australian economy as
a whole.
Information Media and Telecommunications
Professional, Scientific and Technical Services
Healthcare and Social Assistance
Mining
Financial and Insurance Services
Construction
Administrative and Support Services
Retail Trade
Wholesale Trade
Arts and Recreation Services
Transport, Postal and Warehousing
Rental, Hiring and Real Estate Services
Accommodation and Food Services
Public Administration and Safety
Ownership of Dwellings2
Other Services
Education and Training
Agriculture, Forestry and Fishing
Electricity, Gas, Water and Waste Services
Manufacturing 0.7%
1.3%
1.6%
2.2%
2.4%
2.4%
2.5%
2.7%
3.2%
3.2%
3.4%
3.6%
3.6%
3.8%
3.8%
4.4%
4.5%
4.5%
4.9%
5.1%
All-industries average growth:
3.2% per annum
Services: 3.4%
Goods: 2.4%
Not Classified as a good or service2Goods1Services
Why Australia Benchmark Report 2020 12
0
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General government net debt, 2019
As a percentage of GDP
Notes: 1. For cross-economy comparability, net debt levels reported by national
statistical agencies for economies that have adopted the 2008 System of
National Accounts (Australia, Canada, United States) are adjusted to exclude
unfunded pension liabilities of government employees’ defined-benefit pension
plans. 2. Belgium’s net debt series has been revised to ensure consistency
between liabilities and assets. Net debt is defined as gross debt (Maastricht
definition) minus assets in the form of currency and deposits, loans, and debt
securities. 3. Based on nominal GDP series prior to the recent revision; therefore,
data in the tables are not comparable to the authorities’ numbers. 4. Net debt
for Ireland is defined as gross general debt less debt instrument assets, namely,
currency and deposits, debt securities, and loans. It was previously defined as
general government debt less currency and deposits. 5. Net debt for Iceland is
defined as gross debt less currency and deposits. 6. Net debt figures were revised
to only include categories of assets corresponding to the categories of liabilities
covered by the Maastricht definition of gross debt. 7. Emerging economies
include: Algeria, Angola, Argentina, Azerbaijan, Belarus, Brazil, Chile, China,
Colombia, Croatia, Dominican Republic, Ecuador, Egypt, Hungary, India, Indonesia,
Iran, Kazakhstan, Kuwait, Libya, Malaysia, Mexico, Morocco, Oman, Pakistan, Peru,
Philippines, Poland, Qatar, Romania, Russia, Saudi Arabia, South Africa, Sri Lanka,
Thailand, Turkey, Ukraine, United Arab Emirates, Uruguay and Venezuela.
Sources: International Monetary Fund (IMF), IMF Fiscal Monitor April 2020,
Statistical Tables A8, A15 and A16; Austrade
Low government debt
The combined effects of COVID-19 lockdowns and
economic support packages are swiftly changing
the public debt profile of almost all economies.
Fortunately, Australia entered 2020 with very
low public debt, by international standards. In
its April 2020 ‘Global Fiscal Monitor’ report, the
International Monetary Fund reported that the
Australian Government’s net debt was 23 per cent
of GDP in 2019. This is well below the 77 per cent
average for advanced economies. With low public
sector debt, the Australian Government is well
positioned to support economic recovery.
Advanced economies average 76.6
Euro Area 69.1
G20 Advanced 83.1
G7 88.1
Emerging market & middle-income economies average7 38.3
Asia (Gross debt only; net debt figures unavailable) 55.1
Europe 30.6
G20 Emerging 38.1
Latin America 45.3
154.3
112.2
86.184.1
74.4
58.255.9 55.7
50.9
41.6 41.3
26.9 26.5 25.9 25.023.2
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Why Australia Benchmark Report 2020 13
Australia’s globally significant industries 16
A leader in new technologies 17
Abundant reserves of minerals and energy 18
Fast-growing exports in the resources and energy sectors 19
A growing market for renewables 20
A top agri-exporter to Asian markets 21
A clean, green source of natural fibres and food 22
Strong, sophisticated financial markets 23
Australia’s A$9.5 trillion financial sector 24
The third most popular country for overseas students 25
A top market for global tourism 26
DYNAMIC INDUSTRIES02
Why Australia Benchmark Report 2020 14
Global demand for
Australia’s energy,
minerals and food.
Energy and resources made up around
75 per cent of Australia’s goods exports in
2019. The export mix is changing, however.
During 2019, Australia rivalled Qatar as
the world’s largest exporter of liquefied
natural gas. Fresh investment in the mining
and processing of lithium and rare-earth
minerals will grow Australia’s role in the
supply chain for electric vehicles and high-
tech devices.
Meanwhile, renewables are taking off.
Australia’s coastal population and sunshine
climate have seen wind and solar power
soar. Today, they account for half of
Australia’s renewable energy generation.
Australian agriculture is truly world-
leading – in efficiency, technology and
environmental credibility. This helps
Australian farmers attract investment
from around the world, and secure new
customers for clean, green produce in
Asia’s premium food markets. Our services
industries are also strong. Australia’s
financial markets manage the world’s
fourth largest pool of pension fund assets
– a sector that is growing faster in Australia
than in any other developed economy.
DYNAMIC INDUSTRIES02
Why Australia Benchmark Report 2020 15
Australia’s globally significant industries
Notes: 1. Inbound students in tertiary education.
Australia’s globally significant industries
Australia is a leading provider of goods and
services that are in high demand across the
global economy. The country is one of the
world’s top five exporters of minerals and fuels,
with significant reserves of iron ore, gold and
liquefied natural gas (LNG). Australia is also one
of the world’s top 14 agricultural producers and
a leader in the production of premium and clean,
green produce. Meanwhile, Australia has large
and sophisticated financial markets, with the
world’s fifth largest pool of investment fund
assets.
Australia’s investment fund assets (US$2.2 trillion, December 2019)
Fifth largest in the world.
Source: Investment Company Institute,
Quarterly Worldwide Mutual Fund Market
Foreign students in tertiary education1 (7.2% of the world’s total, 2017)
Third largest in the world.
Source: UNESCO, Institute for Statistics
Merchandise export – mining and fuels (US$127.7 billion, 2018)
Top five in the world.
Source: UN Comtrade Database
Merchandise export – agricultural products
(US$36.7 billion, 2018)
Top 14 in the world.
Source: UN Comtrade Database
International tourism receipts (US$46 billion, 2019)
Eighth largest in the world.
Source: UNWTO World Tourism Barometer,
Statistical Annex, May 2020
Why Australia Benchmark Report 2020 16
Notes: 1. Fintech Australia, www.fintechaustralia.org.au/learn accessed June
2020. 2. As above. 3. KPMG and H2 Ventures, FinTech 100, November 2019.
4. Austrade, Australian Education Technology, 2016. 5. Edugrowth and
Deloitte, The Australian EdTech Market Census 2017, August 2017. 6. As
above. 7. Frost & Sullivan, Global Digital Health Outlook 2018. 8. WIPO Patent
Statistics, total count by applicant’s origin (equivalent count), database
accessed 18 October 2019. 9. KPMG, Talking 2030: Growing agriculture into
a $100 billion industry, 23 March 2018. 10. KPMG, Talking 2030: Growing
agriculture into a $100 billion industry, 23 March 2018. 11. AgFunder, Agri-
FoodTech Investing Report – 2019, February 2020.
Australia’s tech credentialsA leader in new technologies
Australia’s transition to a services-based
economy is driving the development of new
technologies in agriculture, education, financial
services, health and other sectors. Innovation
includes the use of blockchain in finance,
immersive simulation technologies in education,
robotics in medical procedures and the Internet
of Things in agriculture. Australia is also
recognised as a world leader in silicon-based
quantum computing research.
A$90.4 million invested in Australian
agtech sector (2019)11
500 medtech companies
800 fintech companies1
400 agtech & foodtech companies9
350 edtech companies
A$600 million invested annually
through 15 Rural R&D Corporations
15 agtech incubators/accelerators101,100 online education providers4
Fastest-growing startup sector5
Second largest startup vertical after
fintech2
A$1.7 billion edtech market by 2022
US$1.8 billion digital health market7US$600 million invested across
28 deals (2018)2
Seven fintech companies in the
world’s top 1003
World top 20 for medtech patents8
A$20bn Medical Research Future Fund
A$20 billion lift in industry value
Why Australia Benchmark Report 2020 17
Sources: 1. DFAT, Trade statistical pivot tables; Austrade, Last updated:
November 2019 using ABS catalogue 5368.0 (September 2019 data).
2. USGS (Mineral Commodity Summaries 2019), OECD Nuclear Energy Agency/
International Atomic Energy Agency (The Red Book 2018), World Nuclear
Association (World Uranium Mining Production, August 2019 update), BP
Statistical Review of World Energy 2019, International Energy Agency
(Coal Information 2019 Overview), BGR Energy Study 2018 and Geoscience
Australia. 3. Gold including (in the chart): $19.7bn; Gold: $18.9bn plus gold coin
& legal tender coin; Coin (excl gold coin) not legal tender: $0.8bn
Australia’s commodity exports, 2018–191
Minerals and energy, with global ranking for production and resources
Abundant reserves of minerals and energy
Australia has the world’s largest reserves of iron
ore, gold, lead and zinc, as well as the second
largest reserves of bauxite, nickel, lithium
and cobalt. With the world’s largest uranium
reserves and the second largest deposits of
brown coal, Australia is a major energy supplier
to Asian economies. New resources also beckon.
Australia’s lithium industry will benefit from the
rapid rise in demand for lithium-ion batteries that
power electric vehicles. US demand will spur rare-
earths mining and processing.
Energy OtherMinerals
Iron ore A$77.2bn
Gold and gold coin A$19.7bn
Bauxite A$11.4bn
Copper A$5.9bn
Con�dential minerals ores A$5.0bnAluminium A$4.3bn
Other ores & concentrates A$3.6bnCrude minerals A$1.7bn
Zinc A$1.6bnPrecious metal ores A$1.5bn
Other minerals A$4.2bn
Coal A$69.6bn
Other commodity exports (incl. agriculture, forestry & �sheries and manufactures) A$105.7bn
Crude petroleum A$8.5bn
Natural gas A$49.7bn
Re�ned petroleum A$3.0bn
Production Reserves
Iron ore 1 1
Bauxite 1 2
Lithium 1 2
Gold3 2 1
Lead 2 1
Rare earths 2 6
Production Reserves
Uranium 3 1
Zinc 3 1
Cobalt 3 2
Black coal 4 4
Brown coal 6 2
Copper 6 2
Production Reserves
Nickel 6 2
Silver 6 3
Natural gas 7 14
Tin 8 4
Australia’s world ranking for minerals and energy2
Why Australia Benchmark Report 2020 18
Australia’s resources and energy sector, 2001–02 to 2018–19
Nominal value of exports, 2001–02 to 2018–19
Fast-growing exports in the resources and energy sectors
Australia’s proximity to resources-hungry
Asian markets underpins its position as a
major global exporter of minerals and energy.
From 2001–02 to 2018–19, Australia’s total
resources and energy exports are estimated
to have quintupled to around A$280 billion.
Export earnings are expected to remain strong,
as the volume of resources and energy exports
increases.
Notes: 1. CAGR = Compound annual growth rate.
Sources: Department of Industry, Science, Energy and Resources, Office of
the Chief Economist, Resources and Energy Quarterly, March 2020; Austrade
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Energy: CAGR1 10.2% (2001–02 to 2018–19)
Resources: CAGR 9.8% (2001–02 to 2018–19)
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Why Australia Benchmark Report 2020 19
E = Estimate; TWh = Terawatt-hour.
Notes: Solar energy generation in 2002–03 was 0.0583 TWh and in 2007–08
was 0.123TWh. Wind energy generation in 2002–03 was 0.703TWh and in
2007–08 was 0.309TWh.
Sources: Department of the Environment and Energy, Australian Energy
Statistics, Table 01 Electricity generation by fuel type, Released March 2019;
Sources: IRENA (2019), Renewable Energy Statistics 2019, The International
Renewable Energy Agency (IRENA), Abu Dhabi; Austrade
Australia’s renewable energy generation volumes and world rankings
1992–93 to 2017–18E, TWh
A growing market for renewables
Renewable energy accounted for almost
16 per cent of Australia’s total electricity
generation in 2017–18. Over the past decade,
the amount of energy generated by wind and
solar sources has grown significantly, leveraging
Australia’s natural advantages. Electricity
generation from wind and solar power alone
accounted for half of Australia’s renewable
energy generation in 2017–18. They generated
just 16 per cent of Australian renewables
10 years ago.
World ranking World share %
Solar PV 10 1.9
Wind energy 15 11
Bioenergy 25 0.7
Hydropower 33 0.4
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Te
raw
att
–h
ou
r
Pe
rce
nta
ge
of
tota
l ele
ctr
icit
y g
en
era
tio
n
Renewables: as a percentage of total electricity generation (right-hand axis)
Australia’s gross energy production 2017
Why Australia Benchmark Report 2020 20
Notes: 1. Includes all unprocessed food and live animals; raw hides, skins and
furskins; and all unprocessed textile fibres. 2. Export value of Australian food
and fibre is defined as the total export value of primary products (unprocessed
– food & live animals total); primary products (unprocessed – Other – Hides
skins & furskins raw); primary products (unprocessed – Other – Textile fibres
unprocessed & waste); and primary products (processed – food total).
3. The Asian region is defined as Asia, ASEAN and Oceania.
Sources: Exports by country data based on the DFAT Trade Statistical pivot table,
country and TRIEC pivot table 1990 to 2019; Austrade
Australia’s top 15 export destinations for food and fibre
A$ billion, 2019
A top agri-exporter to Asian markets
Australian food and fibre exports rose to
almost A$50 billion in 2019. Of Australia’s 15
top food markets, 12 are in the Asia region3,
and they account for approximately three-
quarters of the nation’s agrifoods exports. With
a reputation for high agricultural standards
and a well-regulated food industry, Australian
produce commands premium prices in Asia.
Meanwhile, Australia’s network of regional free
trade agreements gives Australian growers
preferential access to Asian markets.
1. China $15.2bn
7. Vietnam $1.7bn
4. Korea $3.3bn
5. Indonesia $2.3bn
6. New Zealand $1.7bn
14. UAE $0.7bn
15. UK $0.6bn
2. Japan $5.5bn
3. US $4.4bn
9. Hong Kong SAR $1.2bn13. Taiwan $0.8bn
10. Philippines $1.2bn
11. Malaysia $1.1bn
8. Singapore $1.3bn
12. Thailand $0.9bn
Exports (A$ billion)
2019
Unprocessed 19.31
Processed 30.4
Total 49.72
Why Australia Benchmark Report 2020 21
Australia’s major agricultural commodity exports, 2018–19EA clean, green source of natural fibres and food
Demand for Australia’s agricultural commodities
drives the country’s export trade in high-value,
branded, premium products. Australia is a
major global producer of beef, wool, wheat,
wine, raw cotton, lamb, barley, sugar, fruit, live
feeder/slaughter cattle, mutton and tree nuts.
Together, these top 12 products contributed
almost 70 per cent to the total value of
Australia’s A$48 billion of agricultural exports in
2018–19.
Notes: 1. Including greasy wool exports shown on a balance of payments basis
before 2015-16. Australian Bureau of Statistics recorded trade data adjusted
for changes in stock levels held overseas. 2. Includes wheat flour. 3. Excludes
cotton waste and linters. 4. Includes malt. 5. Includes all bovine for feeder/
slaughter, breeding and dairy purposes. 6. Includes dairy cattle and excludes
skin and hide values. 7. Shorn, dead and fellmongered wool, and wool exported
on skins. 8. Milk intake by factories and valued at the farm gate. 9. Excludes
skin and hide values. 10. Includes all bovine for feeder/slaughter, breeding and
dairy purposes. 11. Value delivered to gin.
E = ABARES estimate.
Sources: The Australian Bureau of Agricultural and Resource Economics and
Sciences (ABARES), Agricultural commodities –June 2019, Tables 13 and 17;
Austrade
0
1
2
3
4
5
6
7
8
9
10
Beefand veal
Wooltotal¹
Wheat² Wine Rawcotton³
Lamb Barley4 Sugar Fruit Live feeder/slaughter cattle5
Mutton Tree nuts
$9.1
$4.3
Ex
po
rt v
alu
e (
A$
bil
lio
n)
$3.6
$2.9$2.7
$2.5
$1.8$1.6
$1.4 $1.3 $1.1 $1.1
A$ billion
Commodity 2018–19E
Cattle and calves6 11.1
Wheat 6.4
Fruit and nuts (excl. grapes) 4.8
Wool7 4.5
Vegetables 4.1
Milk8 4.1
Lamb9 3.7
Barley 3.1
Poultry 2.8
Nursery, cut flowers and turf 1.7
Cattle exported live10 1.5
Cotton lint and cottonseed11 1.4
Total Production
Why Australia Benchmark Report 2020 22
Sources: 1. Data was estimated from Reserve Bank of Australia Statistics (RBA),
B1 Assets of Financial Institutions (updated 1 June 2020); RBA Statistics, B19
Securitisation Vehicles (updated 1 June 2020); RBA Statistics, Exchange rates
(extracted on 10 June 2020); Australian Bureau of Statistics (ABS), Cat. No.
5655.0 Managed Funds (released 4 June 2020); ABS, Cat. No. 5206.0 Australian
National Accounts: National Income, Expenditure and Product, March 2020
(released 3 June 2020); Australian Prudential Regulation Authority (APRA),
Quarterly General Insurance Performance Statistics, March 2020 (released 28
May 2020). 2. Investment Company Institute, Research & Statistics, Worldwide
Market Data (released 25 March 2020) survey does not include Hong Kong SAR
and Singapore. 3. Standard & Poor’s, S&P Dow Jones Indices World-By-Numbers:
December 2019. 4. Willis Towers Watson, Global Pension Assets Study 2020
(released 10 February 2020). 5. Bank for International Settlements, Triennial
Central Bank Survey of Foreign Exchange and OTC Derivatives Markets in 2019
(updated 16 September 2019. 6. Bank for International Settlements, Debt
securities statistics, C1 summary of debt securities outstanding by residence
and sector of issuer (updated 28 May 2020); Austrade
Global significance of Australia’s financial marketsStrong, sophisticated financial markets
Australia has well-developed financial markets,
including the world’s fifth largest pool of
managed funds, ninth largest stock market
and tenth largest foreign exchange market.
The US$2.2 trillion managed funds sector is
underpinned by a mandated retirement savings
scheme – called superannuation – that has
created the fourth largest pension pool in the
world.
US$6,645 billion1
Assets of Australian financial institutions*
4.8 times Australia’s nominal GDP
*December 2019
US$2,077 billion4
Pension assets*
4th largest in the world
2nd largest in the Asian region
*2019
US$2,201 billion2
Fund assets under management*
5th largest in the world
*December quarter 2019
US$119 billion5
OTC foreign exchange daily average turnover*
10th largest in the world
5th largest in the Asian region
*April 2019
US$1,231 billion3
Stock market*
9th largest in the world
3rd largest in the Asian region
*Market capitalisation of freely
floating stocks, December 2019
US$1,959 billion6
International and domestic debt securities outstanding*
11th largest in the world
3rd largest in the Asian region
*Total outstanding value, December quarter 2019
Why Australia Benchmark Report 2020 23
Notes: CAGR = Compound annual growth rate from December quarter 1999 to
December quarter 2019. 1. ADIs: Banks, Building Societies and Credit Unions.
RFCs: Money Market Corporations, Finance Companies and General Financiers.
2. Other: General Insurance Offices and Securitisation Vehicles.
Sources: Reserve Bank of Australia (RBA) Statistics, B1 Assets of Financial
Institutions (updated 1 June 2020); RBA Statistics, B19 Securitisation Vehicles
(updated 1 June 2020); RBA Statistics, Exchange rates (extracted on 10 June
2020); Australian Bureau of Statistics (ABS) , Cat. No. 5655.0 Managed Funds
(released 4 June 2020); ABS, Cat. No. 5206.0 Australian National Accounts:
National Income, Expenditure and Product, March 2020 (released 3 June
2020); Australian Prudential Regulation Authority (APRA), Quarterly General
Insurance Performance Statistics, March 2020 (released 28 May 2020);
Austrade
Assets of Australian financial institutions, 1999–2019
A$ trillion, year ending December quarter
Australia’s A$9.5 trillion financial sector
Australian financial markets are large relative
to the overall size of our economy. The total
estimated value of all financial assets rose to
A$9.5 trillion in 2019. This equates to almost
five times Australia’s GDP. On average, the
sector has grown at just over nine per cent
per year over the past 20 years. The size
and strength of Australia’s financial services
industry makes it the largest contributor to the
country’s gross value added and a significant
source of capital.
0
1
2
3
4
5
6
7
8
9
10
1999 2004 2009 2015 2019
ADIs and RFCs1
Managed funds
Reserve Bank of Australia
Other �nancial institutions2
AFI assets % of GDP (right-hand axis)
0
50
100
150
200
250
300
350
400
450
500
A$
tri
llio
n a
sse
ts
All
�n
an
cia
l in
stit
uti
on
ass
ets
as
a p
erc
en
tag
e o
f G
DP
255%
476%
Assets of financial institutions % CAGR1 1999 to 2019
Authorised Deposit-taking Institutions (ADIs) and
Registered Financial Corporations ( RFCs)1
9.3
Managed funds 9.4
Reserve Bank of Australia 6.3
Total all financial institutions (AFIs) including other2 9.2
Why Australia Benchmark Report 2020 24
Notes: 1. Enrolment numbers reflect international student enrolments (by
country of citizenship). 2. 2019 data contains statistics relating to enrolments
in higher education courses in each Australian Higher Education Provider
and is correct as of the April 2020 release of student data (revised monthly).
3. Excludes enrolments from New Zealand as students do not require an
international student visa to study in Australia. 4. ‘Other’ includes enrolments
from countries not known or where no further information was provided.
Sources: Austrade, Market Information Package, Detailed Pivot Table, April
2020 release
International higher education enrolments by regional grouping1
Onshore students on student visas only, full-year 20192
The third most popular country for overseas students
By the end of 2019, Australia had become the
third most popular destination for foreign
students enrolled in higher education. Australia
attracted over 750,000 international students
in 2019, who enrolled in universities, technical
colleges, vocational education and training
colleges, English language courses, and schools.
About 80 per cent of students arrived from
countries in Asia.
2018 2019
Total international higher education enrolments 398,156 441,066
Total higher education enrolments, year on year % change 14.0% 10.8%
% share of all Asian students (excluding Middle East) 89.7% 90.5%
Top five broad fields of study 328,220 361,916
Management and commerce 170,500 175,661
Information technology 54,795 70,721
Engineering and related technologies 44,387 46,610
Health 31,377 37,072
Society and culture 27,161 31,852
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000
200,000
NortheastAsia
Southern andCentral Asia
SoutheastAsia
Americas North Africaand the
Middle East
Sub-SaharanAfrica
North-WestEurope
Southern and Eastern
Europe
Oceania andAntarctica3
Other4
185,530
156,236
57,505
12,188 10,4888,601 6,088
3,340 1,061 29
Why Australia Benchmark Report 2020 25
Notes: 1. There are methodological differences between UNWTO and Tourism
Research Australia (TRA) related to education travel expenses.
Sources: United Nations World Travel Organisation (UNWTO), World Tourism
Barometer, Statistical Annex, Volume 18, Issue 2 (released May 2020);
Austrade
Top 15 global tourism receipts – markets
2019, receipts (US$)1
A top market for global tourism
With a 3.1 per cent share of global tourism
receipts, Australia was the world’s eighth
largest international tourism market in 2019.
As the world recovers from the impacts of
COVID-19, domestic tourism will help Australia
gain a competitive edge. In 2019, the amount
spent by international visitors to Australia
(US$46 billion) was less than half the amount
spent by domestic overnight travellers in
Australia. With few overseas options and
stringent border controls, Australia’s high-
spending domestic tourists will help sustain
Australian tourism until global visitors return.
13. Turkey $29.8bn
9. Germany $41.6bn 11. China $35.8bn
4. Thailand $60.5bn8. Australia $46bn
12. India $30bn
6. Italy $49.8bn
3. France $65.4bn
2. Spain $79.7bn
5. UK $49.9bn
15. Canada $26.8bn
7. Japan $46.1bn
1. US $214.1bn
14. Hong Kong SAR $29bn
10. Macau SAR $39.5bn
Why Australia Benchmark Report 2020 26
Australia’s roll call of innovation 29
An innovative, highly educated nation 30
A leading economy for research and development 31
Australian industry drives innovation 32
Australian scientific research has a major impact 33
Australia’s top-ranking academic institutions 34
A services-based workforce 35
Australia’s overseas-born population 36
INNOVATION & SKILLS03
Why Australia Benchmark Report 2020 27
Research, academia
and diversity spark an
innovation nation.
Australia is one of the most creative
countries in the world. Overall spending on
research and development (R&D) has grown
by 7 per cent per year since 2001. Business
is the driving force, with commercial R&D
rising almost 2 percentage points faster
than Australia’s GDP.
Our universities are partly responsible.
Seven Australian universities make it into
the top 100 global rankings. In terms of
academic impact, Australian publications
outperform other countries’ in 20 out of 22
fields of academic research.
Then there’s the Australian workforce.
Diverse, multilingual and multicultural, more
than 28 per cent of our population was born
overseas. Combined with the high skill levels
of migrants, this multitalented workforce
helps Australia thrive in today’s globalised
economy.
INNOVATION & SKILLS03
Why Australia Benchmark Report 2020 28
Australia’s innovation credentials
Sources: 1. Economist Intelligence Unit, 2018 Technological Readiness Ranking, forecast for 2018–2022. 2. Shanghai Ranking Consultancy, Academic Ranking of World Universities 2019. 3. Global Entrepreneurship and Development Institute, Global Entrepreneurship Index 2018, 29 November 2017. 4. CSIRO Annual Report 2018–19. 5. Department of Innovation, Industry and Science, Australian Innovation System Monitor latest update, Data Releases, November 2019 update, section 1.1. 6. Australian Bureau of Statistics, Cat. No. 62270DO001_201805 Education and Work, Australia, May 2019, Table 13 (released 13 November 2019).
Australia’s roll call of innovation
Australia is a nation of inventors and
entrepreneurs. The electronic pacemaker
(1926), the ‘black box’ flight recorder (1958),
ultrasound (1961), multi-channel cochlear
implants (1970s), wi-fi (1990s), the polymer
banknote (1988), Google Maps (2003) and a
cervical cancer vaccine (2006) are all Australian
innovations. With dynamic links between
academia, industry and public services,
Australia welcomes investment in its intellectual
capital to help lay the groundwork for future
discoveries.
Ranked 1stFor technological readiness1
CSIRO ranks in the
Top 1%of the world’s scientific institutions
in 14 of 22 research fields4
3rd highestNumber of universities in the
world’s top 1002
About 50%of Australian firms are
innovation-active5
Ranked 5thGlobal entrepreneurship3
Around 44%of Australia’s workforce has a
tertiary qualification6
Why Australia Benchmark Report 2020 29
Notes: 1. Per 100 people. 2. Foreign tertiary-level students per 1,000
inhabitants, 2017. 3. Per 1,000 people, aged 15–69. 4. Human Capital
and Research includes Education, Tertiary Education and Research and
Development. 5. The H-Index is a numerical indicator of how productive and
influential a researcher is. 6. Generic top-level domains (gTLDs) are one of the
categories of top-level domains (TLDs) maintained by the Internet Assigned
Numbers Authority (IANA) for use in the Domain Name System of the Internet.
7. Per 1,000 people, aged 15–69.
Sources: (a) World Economic Forum (WEF), Switzerland and Harvard
University, Global Competitiveness Report 2019 (released 9 October 2019,
141 economies); (b) International Institute for Management Development
(IMD), Switzerland, IMD World Competitiveness Yearbook 2019 (released May
2019, 63 economies); (c) Co-publishers Cornell University, INSEAD, and the
World Intellectual Property Organization (WIPO), The Global Innovation Index
2019 (129 economies), 12th edition; Austrade
Skilled workforce and innovation indicators – Global rankings, 2019An innovative, highly educated nation
International studies recognise the high levels
of skill and education in Australia’s workforce.
According to the World Economic Forum (WEF)
Global Competitiveness Report 2019, Australia’s
scientific publication scores are among the
world’s highest, and so are its metrics for critical
thinking in teaching. Australia also ranked in the
top 10 for availability of skilled labour, according
to a study by the International Institute for
Management Development (IMD).
Australia
US
UK
France
Germany
Japan
Korea
China
India
Singapore
WEF Global Competitiveness Report 2019
Ranking (141 economies)(a) in:
School Life Expectancy Years 1 30 6 39 17 49 25 76 88 27
Diversity of Workforce 3 7 14 65 16 106 86 78 80 1
Reliance on Professional Management 6 10 26 32 25 12 54 51 41 3
Willingness to Delegate Authority 8 7 22 42 16 27 85 57 71 17
Ratio of Wage and Salaried Female Workers/
Male Workers
10 39 12 23 27 62 59 56 128 31
Mobile-Broadband Subscriptions1 10 7 34 42 58 2 21 36 116 6
Scientific Publications Scores 10 1 2 5 3 6 18 13 21 23
Critical Thinking in Teaching 11 9 14 36 10 87 82 25 55 21
IMD World Competitiveness Yearbook 2019
Ranking (63 economies)(b) in:
Student Mobility Inbound2 1 25 7 22 26 47 45 57 60 3
Availability of Skilled Labour 10 25 35 37 49 44 34 27 17 16
Availability of Foreign Highly-skilled
Personnel
10 7 22 30 18 51 49 27 40 2
The Global Innovation Index 2019 Ranking
(129 economies)(c) in:
Entertainment & Media market3 7 1 9 15 12 6 19 42 60 20
Human Capital and Research4 10 12 9 11 3 21 1 25 53 5
Citable Documents H-index5 10 1 1 5 3 6 18 13 21 23
Generic Top-level Domains (TLDs)6, 7 10 1 12 18 14 31 43 75 98 23
Why Australia Benchmark Report 2020 30
Notes: GERD % of GDP ratios refer to 2017 except for Australia and India
(2015), Brazil, South Africa and Mexico (2016) and Sweden (2018). Researcher
figures refer to 2017 except for Australia (2010), Brazil (2014), India (2015),
Mexico, Canada, USA and South Africa (2016). GERD values (US$ PPP) refers
to 2017, except for Australia and India (2015), Brazil, Mexico and South Africa
(2016), and Sweden (2018). All figures for Brazil and Indonesia were from
UNESCO UIS.Stat (http://data.uis.unesco.org/)
Sources: GERD statistics were from OECD Dataset: Main Science
and Technology Indicators, (https://stats.oecd.org/Index.
aspx?DataSetCode=MSTI_PUB) and UNESCO Institute for Statistics,
Dataset: Main Science and Technology Indicators, (http://data.uis.unesco.
org/); Researcher figures were from OECD Data (https://data.oecd.org/rd/
researchers.htm); All were extracted on 18 September 2019; Austrade.
World of research and development
Size of circle reflects the relative amount of annual Gross Domestic Expenditure on R&D (GERD)
in US$ current prices and purchasing power parity terms
A leading economy for research and development
With strong expenditure on research and
development (R&D) as a percentage of GDP
and a high proportion of available researchers,
Australia is among the most innovative countries
in the world – alongside the US, Japan and
France.
0.0
4.0
12.0
8.0
16.0
Italy
New Zealand
Spain
Russia
Canada
France
Germany
Netherlands
UK
1.0 2.0 3.0 5.04.00.0
Turkey
Brazil
Gross expenditure on R&D as a percentage of GDP
SouthAfrica
IndonesiaIndia
Re
se
arc
he
rs p
er
tho
us
an
d e
mp
loy
ess
Sweden
Japan
Korea
US
Australia
Taiwan
Mexico
Singapore
China
BRICS
North America
EU
Other OECDmembers
Other countries
GERD US$ current prices (PPP terms)Regions
>100 billion
20 billionto 100 billion
< 20 billion
Why Australia Benchmark Report 2020 31
Australia’s gross expenditure on research and development (GERD)
Compound annual growth rate of Australia’s GERD total from 2000–01 to 2017–18 = 6.9%
Australian industry drives innovation
Australia’s annual gross expenditure on R&D
rose by 7 per cent per year between 2000–01
and 2017–18 to reach A$33 billion. Business
expenditure on R&D makes up 53 per cent
of Australia’s total R&D expenditure. It has
expanded rapidly from A$5 billion in 2000–01
to A$17.4 billion in 2017–18. This represents
a CAGR of 7.6 per cent since 2001, almost
2 percentage points faster than Australia’s
economic growth over the same period.
Notes: 1. 2017–18 GERD in the chart total were estimated, based on FY2017–
18 data for BERD, 2016 data for HERD, and FY2016-17 figures for GOVERD and
for Private non-profit ERD.
Sources: Australian Bureau of Statistics (ABS), Cat. No. 8104.0 Research
and Experimental Development, Businesses, Australia, 2017–18 (Released
20 September 2019); ABS Cat. No. 8109.0 Research and Experimental
Development, Government and Private Non-Profit Organisations, Australia,
2016–17 (Released 5 July 2018); ABS Cat. No. 8111.0 Research and
Experimental Development, Higher Education Organisations, Australia, 2016
(Released 22 May 2018); Austrade
BERD, A$17.4bn, 53.4%
GOVERD, A$3.3bn, 10.0%
Private non-profit ERD, A$1.0bn, 3.2%
HERD, A$10.9bn, 33.3%
GERD Total = A$32.6bn1
BERD,$A5.0bn, 47.8%
GOVERD,$A2.4bn, 22.6%
Private non-profit ERD, $A0.3bn, 2.8%
HERD, $A2.8bn, 26.8%
GERD Total = A$10.4bn
2000–01,R&D A$ (billion) and % share of total expenditure
2017–18,R&D A$ (billion) and % share of total expenditure
BERD: Business expenditure on R&D
GOVERD: Government expenditure on R&D
HERD: Higher education expenditure on R&D
Private non-profit ERD: Private non-profit expenditure on R&D
BERD: Business expenditure on R&D
GOVERD: Government expenditure on R&D
HERD: Higher education expenditure on R&D
Private non-profit ERD: Private non-profit expenditure on R&D
Why Australia Benchmark Report 2020 32
Sources: InCitesTM (Web of Science Group, Clarivate Analytics). Data as at 27
August 2019, accessed 6 September 2019; Austrade
Relative impacts of Australian scientific publications by research field, 2014–18Australian scientific research has a major impact
In 20 out of 22 fields of academic research,
Australia’s research publications achieve an
impact that is at least 20 per cent above
the global average. Australia’s 10 strongest
categories of published research are: space
sciences, physics, computer science, clinical
medicine, multidisciplinary, engineering,
molecular biology/genetics, materials science,
environment/ecology, and plant & animal
science. These categories neatly reflect
Australia’s diverse research interests and
economic strengths.
Space Science
Physics
Computer Science
Clinical Medicine
Multidisciplinary
Engineering
Molecular Biology and Genetics
Materials Science
Environment/Ecology
Plant & Animal Science
Immunology
Mathematics
Biology & Biochemistry
Geosciences
Microbiology
Agricultural Sciences
Chemistry
Pharmacology & Toxicology
Neuroscience & Behavior
Psychiatry/Psychology
Social Sciences, general
Economics & Business
0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 1.8 2.0
1.81
1.76
1.65
1.64
1.58
1.50
1.49
1.48
1.46
1.45
1.39
1.37
1.37
1.36
1.35
1.33
1.29
1.26
1.26
1.21
1.18
1.06
Global Average: 1.0
Why Australia Benchmark Report 2020 33
Sources: The Academic Ranking of World Universities, Shanghai Ranking
Consultancy (http://www.shanghairanking.com/index.html); Austrade
Academic ranking of world universities, 2020Australia’s top-ranking academic institutions
Australia has seven universities in the top 100,
according to the 2020 Academic Ranking of
World Universities (ARWU). These are: the
University of Melbourne; the University of
Queensland (Brisbane); the Australian National
University (Canberra); the University of New
South Wales (Sydney); the University of Sydney;
Monash University (Melbourne); and the
University of Western Australia (Perth). In 2020,
23 Australian universities were listed in the
ARWU top 500 ranking, compared with just 14
in 2004.
Economies Top 100 Top 200 Top 300 Top 400 Top 500 501 to
1000
Top 1 to
Top 1000
1 USA 41 65 94 114 133 73 206
2 UK 8 20 28 34 36 29 65
3 Australia 7 8 15 22 23 11 34
4 China–Mainland 6 22 32 49 71 73 144
5 France 5 8 12 16 17 13 30
6 Switzerland 5 7 7 7 8 1 9
7 Germany 4 10 19 24 30 19 49
8 Canada 4 9 12 18 19 9 28
9 Netherlands 4 9 10 10 12 1 13
10 Japan 3 7 8 10 14 26 40
11 Sweden 3 5 6 9 11 3 14
12 Belgium 2 4 5 7 7 1 8
13 Denmark 2 3 3 5 5 1 6
14 Singapore 2 2 2 2 2 2 4
15 Israel 1 4 4 4 6 1 7
16 Norway 1 2 2 3 3 2 5
17 Russia 1 1 1 2 3 8 11
18 Finland 1 1 1 2 3 5 8
19 Italy — 3 7 10 17 29 46
20 China–Hong Kong — 2 4 5 5 2 7
21 Saudi Arabia — 2 3 3 4 — 4
22 South Korea — 1 6 9 11 21 32
23 Spain — 1 5 9 13 27 40
24 Austria — 1 3 5 7 7 14
25 Brazil — 1 1 3 6 16 22
Top 1 to 25 economies 100 198 290 382 466 380 846
Top 26 to 63 economies 0 2 10 18 34 120 154
Total 100 200 300 400 500 500 1,000
Why Australia Benchmark Report 2020 34
Australia’s employed persons by industry, 2019
Percentage of total employed persons1
A services-based workforce
Approximately 90 per cent of Australia’s
workforce is employed in the services sector.
Within these services industries, over
44 per cent (5.7 million out of 13 million
people) work in sectors where having a tertiary
education is more common than not.
In some services sectors, over 60 per cent of
the workforce holds a tertiary qualification.
These high-skilled sectors include: education
and training; professional, scientific and
technical services; financial and insurance
services; and health care and social assistance.
Notes: Data may not sum to totals due to rounding. 1. The percentage of total
employed persons by industry was calculated using ABS August 2019 data.
2. Including Rental, Hiring and Real Estate Services (1.7%), Arts and Recreation
Services (2.0%) and Other Services (4.0%).
Sources: Australian Bureau of Statistics, Cat. No. 6291.0.55.003 Labour
Force, Australia, Detailed, Quarterly, Table 04. Employed persons by Industry
division of main job (ANZSIC) - Trend, Seasonally adjusted, and Original, Time
Series Workbook (released 26 September 2019); Austrade
Manufacturing 6.7%
Agriculture, Forestry and Fishing 2.5%
Mining 1.8%
Healthcare and Social Assistance 13.3%
Retail Trade 9.9%
Construction 9.1%
Professional, Scienti�c and Technical Services 9.0%
Accommodation and Food Services 7.1%
Public Administration and Safety 6.4%
Transport, Postal and Warehousing 5.1%
Financial and Insurance Services 3.6%
Administrative and Support Services 3.4%
Wholesale Trade 3.1%
Information Media and Telecommunications 1.6%
Electricity, Gas, Water and Waste Services 1.2%
Other Services2 7.6%
Total employed persons:13 million
Services: 88.9%
Goods: 11.1%
Education and Training 8.3%
Why Australia Benchmark Report 2020 35
Notes: Data refer to 2000 or the closest available year, and to 2018 or the
most recent available year. The OECD average is simple average based on rates
presented. For Japan and Korea, the data refer to the foreign population rather
than the foreign-born population.
Sources: OECD (2019), International Migration Outlook 2019, Page 40, Figure
1.10, https://stats.oecd.org/viewhtml.aspx?datasetcode=MIG&lang=en;
Austrade
Foreign-born population
As a percentage of total population, 2000 and 2018
Australia’s overseas-born population
With 28 per cent of its population born
overseas, Australia is well ahead of the OECD
average, and above major developed economies
including Canada, Germany, the UK, the US
and France. Around 60 per cent of Australia’s
overseas-born population (2.4 million) has a
tertiary education, and many of them are from
Asia (around 2 million) or Europe (1.1 million).
With a high proportion of skilled migrants,
Australia’s workforce is culturally diverse, with
language and business skills that give Australia
a built-in advantage in many aspects of cross-
border business.
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Why Australia Benchmark Report 2020 36
Australia’s export links to booming Asian markets 39
A trading nation 40
Australian exports in high demand 41
A high-growth destination for foreign investment 42
Australia’s foreign direct investment tops A$1 trillion 43
Foreign direct investment targets mining and manufacturing 44
A highly globalised society and economy 45
An open trading ecnonomy for services 46
Australia’s liberalised trade with Asia 47
GLOBAL TIES04
Why Australia Benchmark Report 2020 37
Location and low tariffs fire
up a trading powerhouse.
Australia is a trading nation, with exports
and imports of goods and services making
up 42 per cent of our gross domestic
product in 2018–19. With 14 free trade
agreements in place, approximately
70 per cent of Australian trade enjoys
liberalised access to overseas markets.
Twelve of our 15 largest markets are in
Asia and Oceania, generating a trade value
of around A$577 billion in 2018–19. Trade
in services has grown at 6.3 per cent per
year for the past two decades, helping to
steadily broaden our export mix beyond
resources and agriculture.
Growing 8.5 per cent per year since 2011,
foreign direct investment (FDI) inflows help
power our capital-intensive industries.
In 2019, the mining sector accounted for
35.3 per cent of the total stock of
overseas investment in Australia, worth
A$360 billion. This FDI directly contributes
to Australia’s minerals and energy exports,
which reached around A$280 billion in
2018–19. Australia’s thriving manufacturing
sector attracted A$131 billion of overseas
investment in 2018–19.
GLOBAL TIES04
Why Australia Benchmark Report 2020 38
Australia’s top 15 export markets, 2018–19
Value in Australian dollars
Notes: The Asian region is defined as Asia, ASEAN and Oceania.
Sources: Department of Foreign Affairs and Trade: Notes on economy and
commodity rankings for Australia’s trade in goods and services, Annexes 1,2,3
(released 12 November 2019)
Australia’s export links to booming Asian markets
Australia’s integration with Asia’s dynamic
economies is driving wealth creation. Goods and
services exports totalled A$470 billion in 2018–
19. China – Australia’s most-valuable export
destination – received approximately one-third
of total exports. A further 30 per cent of total
exports collectively went to Japan, Korea, the
US and India. Twelve of Australia’s top 15 export
markets are located in Asia, with exports worth
A$357 billion in 2018–19. This represents more
than three-quarters of Australia’s current
export earnings.
A (A1, A3) Baa (Baa1, Baa2)AaaCredit rating (Moody’s): Aa (Aa2, Aa3) Ba3
A$5.6bn
9. UK $13.5bn
1. China $153.2bn
5. India $22.8bn
8. Taiwan $13.9bn
3. Korea $27.8bn
4. US $24.7bn
2. Japan $61.7bn
11. Hong Kong SAR $10.9bn
10. Malaysia $11.5bn
7. Singapore $16.0bn 13. Vietnam $7.6bn
6. New Zealand $16.0bn
12. Indonesia $8.4bn 15. UAE $4.8bn
14. Thailand $7.4bn
Total: $470.2bn
Why Australia Benchmark Report 2020 39
Notes: 1. All data is on a balance of payments basis, except for goods by
country which are on a recorded trade basis. Totals may not always add up
exactly due to rounding. 2. Refer to the DFAT website (https://www.dfat.gov.
au/trade/Pages/trade-and-investment) for more information and a list of the
commodities excluded. 3. Includes DFAT estimate for the United States for
2015-16 & 2017-18. 4. Includes DFAT estimates for 2016-17 & 2017-18.
SAR = Special administrative region of China.
Sources: Department of Foreign Affairs and Trade (DFAT) data, based on DFAT
STARS database, ABS catalogues 5368.0 (Sep-2019) & 536830.55.003/4 and
unpublished ABS data; Austrade
Australia’s exports and imports of goods and services1
Current prices (A$ billion)
A trading nation
In 2018–19, Australia’s two-way trade in goods
and services totalled A$892 billion, making up
approximately 46 per cent of nominal GDP.
Twelve of Australia’s 15 largest markets are in
Asia and Oceania, with a total trade value of
around A$577 billion. This accounts for almost
two-thirds of Australia’s total two-way trade.
It also shows how integrated Australia’s
economy is with our Asian neighbours.
Financial year total ending June (A$ billion) % Growth
Rank
Selected economies2
2015–16
2016–17
2017–18
2018–19
2018–19 %
Share of total
2017–18 to
2018–19
CAGR 2013–14
to 2018–19
1 China 152.1 174.3 195.0 235.0 26.4 20.5 9.0
2 Japan 60.6 68.5 77.4 88.5 9.9 14.3 4.1
3 US 70.7 66.5 70.0 76.4 8.6 9.2 5.0
4 Korea 34.1 38.6 52.4 41.4 4.6 -20.9 3.2
5 Singapore 23.3 24.7 27.9 32.7 3.7 17.4 2.2
6 New Zealand 25.4 26.4 28.3 30.6 3.4 8.2 5.4
7 UK 28.4 27.5 27.8 30.4 3.4 9.4 6.7
8 India 20.0 25.7 29.1 30.3 3.4 4.2 14.9
9 Malaysia 18.5 19.8 21.4 25.1 2.8 17.2 4.3
10 Thailand 21.6 21.8 24.6 24.7 2.8 0.5 5.0
11 Germany 20.0 20.9 22.4 23.4 2.6 4.6 5.4
12 Taiwan 12.5 14.7 15.9 19.7 2.2 23.9 9.2
13 Indonesia 16.1 16.5 16.7 17.8 2.0 6.9 1.3
14 Vietnam 10.5 11.8 13.3 15.5 1.7 16.3 10.0
15 Hong Kong SAR 15.7 19.7 18.7 15.2 1.7 -18.7 -1.9
Other economies 147.8 159.1 158.2 184.8 20.7 16.8 3.4
Total all economies 677.2 736.7 799.0 891.6 100.0 11.6 5.6
of which: APEC3 484.9 528.2 587.1 652.4 73.2 11.1 5.7
ASEAN 95.6 101.0 110.1 123.7 13.9 12.3 4.1
European Union4 98.7 100.4 106.2 114.3 12.8 7.6 5.3
OECD3 310.1 321.7 357.3 375.9 42.2 5.2 4.7
Why Australia Benchmark Report 2020 40
Notes: 1. Goods on a recorded trade basis, Services on balance of payments
(BOP) basis, original data; 2. Includes the DFAT adjustment for coal (based
from the ABS catalogue 5368.0, Value adjustments, Sep 2019). 3. STM
– Simply transformed manufactures; 4. ETM – Elaborately transformed
manufactures. 5. BOP adjustment includes low-value goods for imports and
timing and valuation adjustments. 6. BOP basis. 7. Includes BOP adjustment.
8. Includes student expenditure on tuition fees and living expenses. 9. Includes
Related agency fees & commissions.
Sources: Department of Foreign Affairs and Trade (DFAT), Data were based
on based on DFAT STARS database, ABS catalogue 5368.0 & DFAT estimates;
Austrade
Australia’s trade in goods and services, 2018–19
Total two-way trade in 2018–19: A$892 billion
Australian exports in high demand
Commodities play a vital role in Australia’s
export market, with iron ore, coal and liquefied
natural gas the key products. The combined
export value of these top three commodities
(A$197 billion) accounted for 42 per cent of the
nation’s goods exports in 2018–19. Australian
services are a fast-growing export earner too,
with a total value of A$97 billion in 2018–19.
Their success demonstrates the global pull
of Australia’s world-class education and
tourism sectors.
Australia’s Trade by Level of Processing1
A$ billion
% Change
2017–18 to
2018–19
Exports of goods & services 2017–18 2018–19
Primary products2 243.1 289.2 19.0
Unprocessed food 15.9 13.8 -13.3
Processed food 26.2 28.9 10.1
Minerals 89.7 109.2 21.7
Fuels2 101.3 127.0 25.4
Other primary 9.9 10.3 4.2
Manufactured products 46.1 53.9 16.7
Simply transformed manufactures (excl nickel)3 14.9 18.0 20.4
Elaborately transformed manufactures4 31.2 35.9 15.0
Other goods (incl gold) 25.3 24.3 -3.9
Services exports 88.1 97.1 10.2
Balance of payments adjustment5 5.7
Total exports6 403.4 470.2 16.6
Imports of goods & services
Primary products 57.2 64.3 12.4
Unprocessed food 2.2 2.3 5.7
Processed food 16.5 18.4 11.5
Minerals 1.6 1.2 -26.8
Fuels 34.8 40.2 15.5
Other primary 2.0 2.1 4.0
Manufactured products 231.0 231.0 0.0
Simply transformed manufactures3 14.9 15.4 3.6
Elaborately transformed manufactures4 216.1 215.6 -0.2
Other goods (incl gold) 13.0 11.4 -12.2
Services exports 93.2 101.6 9.0
Balance of payments adjustment5 1.2 13.1
Total imports6 395.6 421.4 6.5
Two-way trade 799.0 891.6 11.6
Top 10 Commodities (Goods and Services)1
A$ billion
% Change
2017–18 to
2018–19
Exports of goods & services 2017–18 2018–19
Rank Commodity
1 Iron ores & concentrates 61.4 77.2 25.7
2 Coal7 60.4 69.6 15.3
3 Natural gas 30.9 49.7 60.9
4 Education-related travel services8 32.6 37.6 15.2
5 Personal travel (excl education) services 21.3 22.5 5.2
6 Gold 19.3 18.9 -2.2
7 Aluminium ores & conc (incl alumina) 9.4 11.4 20.2
8 Beef (fresh, chilled or frozen) 8.0 9.5 19.0
9 Crude petroleum 6.5 8.5 30.5
10 Copper ores & concentrates 5.7 5.9 4.1
Imports of Goods & Services Total 2017–18 2018–19
Rank Commodity
1 Personal travel (excl education) services 42.7 46.3 8.6
2 Refined petroleum 21.7 25.1 15.7
3 Passenger motor vehicles 23.3 21.6 -7.4
4 Telecom equipment & parts 13.4 14.6 8.8
5 Crude petroleum 11.7 13.4 14.3
6 Goods vehicles 10.2 10.6 3.8
7 Freight transport services 9.4 10.1 7.3
8 Computers 8.8 9.8 10.5
9 Professional services 6.7 7.8 16.8
10 Passenger transport services9 7.1 7.5 5.5
Why Australia Benchmark Report 2020 41
Total foreign investment stock in Australia, 2000–2019
Total value in 2019: A$3.9 trillion
A high-growth destination for foreign investment
Australia hosts approximately A$3.9 trillion
of foreign investment – which includes both
foreign direct investment and portfolio
investment. Since 2000, foreign direct
investment has risen by 8.4 per cent per
year, while other investment has risen slightly
faster at 8.6 per cent. As a percentage of GDP,
Australia’s total value of foreign investment
stock reached 196 per cent in December 2019,
up from just 120 per cent in 2000.
Notes: 1. Other investment is the balance of total investment less direct
investment. As such, it represents portfolio investment, financial derivatives
and other investment categories from the source ABS data. 2. Foreign
investment stock as at December.
Sources: Australian Bureau of Statistics (ABS), Cat. No. 5302.0 Balance
of Payments and International Investment Position, Australia, Table 15.
International Investment: Foreign Liabilities – Quarter (released 2 June
2020); ABS Cat. No. 5206.0 Australian National Accounts: National Income,
Expenditure and Product, March 2020, Table 1. Key National Accounts
Aggregates (released 3 June 2020); Austrade
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
Fo
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n in
ve
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en
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0
25
50
75
100
125
150
175
200
120%
196%Direct Investment (left-hand axis, 8.4%)
Other Investment1 (left-hand axis, 8.6%)
Total Investment as a % of GDP (right-hand axis)
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
09
20
10
20
11
20
12
20
13
20
14
20
15
20
16
20
17
20
18
20
19
20
08
Why Australia Benchmark Report 2020 42
Notes: ASEAN = The Association of Southeast Asian Nations. CAGR = compound
annual growth rate. np = not available for publication but included in totals
where applicable, unless otherwise indicated. na = not applicable.
Sources: Australian Bureau of Statistics (ABS), Cat. No. 5352.0 – International
Investment Position, Australia: Supplementary Statistics, 2019 (released 7 May
2020), Table 2; ABS Cat. No. 5206.0 – Australian National Accounts: National
Income, Expenditure and Product, December 2019, Table 3 (released 4 March
2020); Austrade
Main sources of foreign direct investment stock in Australia, 2009–2019
Total value in 2019: A$1.02 trillion
Australia’s foreign direct investment tops A$1 trillion
Australia’s ability to attract investment helps
keep the economy on strong foundations.
Australia’s stock of inward investment reached
A$1.02 trillion in 2019, up 2.5 per cent on 2018.
This was a modest rise by recent standards:
from 2009–2019, Australia’s stock of foreign
direct investment grew at a compound annual
growth rate of 7.6 per cent. Investment from
China, Canada, Malaysia, Hong Kong SAR and
Korea grew particularly quickly. Nevertheless,
Australia’s two largest overseas investors
remain the US and the UK, with holdings
equivalent to 10.3 per cent and 6.4 per cent of
GDP, respectively.
Rank
2019
Country
2009
A$ billion
2017
A$ billion
2018
A$ billion
2019
A$ billion
% Share
2019
% CAGR
2009–2019
Growth ($b)
2009–2019
% of Australian
GDP, 2019
1 US 98.2 199.2 219.5 205.2 20.1 7.6 107.0 10.3
2 UK 61.0 89.4 98.8 127.1 12.5 7.6 66.2 6.4
3 Japan 45.6 97.9 109.1 116.1 11.4 9.8 70.5 5.8
4 Netherlands 31.4 55.9 52.0 54.8 5.4 5.7 23.4 2.7
5 Canada 12.2 32.6 40.4 47.1 4.6 14.4 34.9 2.4
6 China (excludes SARs and Taiwan) 9.1 38.4 41.8 46.0 4.5 17.6 36.9 2.3
7 Bermuda 9.5 42.2 44.5 41.6 4.1 15.9 32.1 2.1
8 Singapore 16.7 27.7 32.7 36.1 3.5 8.0 19.3 1.8
9 Germany 18.1 24.0 24.3 22.0 2.2 2.0 3.9 1.1
10 Virgin Islands, British np 20.8 22.0 21.9 2.1 np np 1.1
11 Hong Kong (SAR) 5.4 15.9 17.9 16.1 1.6 11.5 10.7 0.8
12 Malaysia 4.5 13.5 14.1 14.7 1.4 12.7 10.3 0.7
13 France 13.0 6.3 27.5 12.6 1.2 -0.3 -0.4 0.6
14 Switzerland 17.8 9.7 11.3 10.5 1.0 -5.1 -7.2 0.5
15 Luxembourg 3.2 9.4 8.4 8.1 0.8 9.6 4.8 0.4
16 Korea 1.3 5.4 6.8 7.5 0.7 19.3 6.2 0.4
Other economies 143.1 208.5 223.2 239.5 23.5 5.3 96.3 12.0
FDI stock – all economies 490.2 896.9 994.3 1,019.5 100.0 7.6 529.3 51.1
OECD 327.4 547.4 618.6 630.8 61.9 6.8 303.4 31.6
APEC 200.6 442.0 494.6 500.7 49.1 9.6 300.1 25.1
EU 144.8 196.0 224.5 238.1 23.4 5.1 93.3 11.9
ASEAN 22.1 46.6 52.6 56.6 5.6 9.9 34.5 2.8
FDI stock as a percentage of GDP 38.9 49.6 52.3 51.1
Why Australia Benchmark Report 2020 43
Foreign direct investment stock in Australia by industry – value and percentage share
Total value: A$1,019 billion in 2019
Foreign direct investment targets mining and manufacturing
Investment powers productivity and growth
in some of Australia’s most valuable export
industries. In 2019, the mining sector accounted
for 35.3 per cent of the total stock of overseas
investment in Australia, worth over A$360 billion.
Next came Australia’s manufacturing sector, which
attracted A$131 billion of overseas investment
and then financial services, with A$113 billion in
investment. This distribution of foreign direct
investment (FDI) is being steadily rebalanced, with
FDI in services growing approximately twice as fast
as FDI in goods industries.
Notes: 1. Other includes administrative and support service activities
($7.9b); public administration, activities of households and of extraterritorial
organisations (np); education (np); human health and social work activities
($3.4b); arts, entertainment and recreation (np); other service activities (np);
and unallocated ($114.5b).
np = not available for publication.
Sources: Australian Bureau of Statistics Cat. No. 5352.0 – International
Investment Position, Australia: Supplementary Statistics, 2019 (released 7
May 2020), Table 15a. Foreign Investment in Australia: Level of Investment
at 31 December by Industry Division (ANZSIC), Direct Investment in Australia
($million); Austrade
Mining $360.1bn, 35.3%
Manufacturing $131.4bn, 12.9%
Financial and Insurance $113.2bn, 11.1%
Agriculture, Forestry and Fishing $3.4bn, 0.3%
Real Estate $110.9bn, 10.9%
Wholesale and Retail Trade and Related Industries $60.3bn, 5.9%
Information and Communications$30.5bn, 3.0%
Transportation and Storage $23.3bn, 2.3%
Utilities and Related Industries $21.7bn, 2.1%
Construction $18.1bn, 1.8%
Accommodation and Food Service $9.3bn, 0.9%
Professional, Scienti�c and Technical $8.0bn, 0.8%
Other1 $129.2bn, 12.7%
Why Australia Benchmark Report 2020 44
Notes: The KOF Globalisation Index measures the economic, social and political
dimensions of globalisation. The current KOF Globalisation Index is available
for 195 countries and covers the period from 1970 to 2017. The index measures
globalisation on a scale from 1 to 100.
Sources: Gygli, Savina, Florian Haelg, Niklas Potrafke and Jan-Egbert Sturm
(2019): The KOF Globalisation Index – Revisited, Review of International
Organizations, https://doi.org/10.1007/s11558-019-09344-2.; Austrade
KOF Globalisation Index
Rankings for the year 2017
A highly globalised society and economy
When considering a wide range of economic,
social and political factors, Australia is one
of the most globalised countries in the world.
According to the KOF Globalisation Index,
Australia ranked number two in the Asia-
Pacific region in 2017, after Singapore. The
top most globalised countries are Switzerland,
Netherlands, Belgium, Sweden and the UK.
Globally, Australia was ranked 25th, after the
US (23rd) and well above many major trading
economies, such as Korea (34th), Japan (36th),
China (81st) and India (95th).
India
China
World Average
Australia
19
71
19
73
19
75
19
77
19
79
19
81
19
83
19
85
19
87
19
89
19
91
19
93
19
95
19
97
19
99
20
01
20
03
20
05
20
07
20
09
20
11
20
13
20
15
20
17
10
20
30
40
50
60
70
80
90
Asia Pacific World Economy Index
1 19 Singapore 84
2 25 Australia 82
3 27 Malaysia 81
4 34 Korea 79
5 36 Japan 79
6 38 New Zealand 78
9 50 Thailand 73
15 69 Hong Kong SAR 68
19 81 China 65
26 95 India 62
Ranking National score
Why Australia Benchmark Report 2020 45
Notes: 1. The OECD Services Trade Restrictiveness Index (STRI) is a unique,
evidence-based diagnostic tool that provides an up-to-date snapshot of
services trade barriers in 22 sectors across all OECD member countries and
non-OECD (Brazil, China, Costa Rica, India, Indonesia, Malaysia, the Russian
Federation, and South Africa). These countries and sectors represent over
80% of global trade in services.
Sources: OECD.Stat, Services Trade Restrictiveness Index (https://stats.
oecd.org/Index.aspx?DataSetCode=STRI), Data extracted on 16 Sept 2019;
Austrade
Restrictiveness in trade in services: Australia, OECD and non-OECD countries
Service Trade Restrictiveness Index (STRI)1 (the lower the score, the more open trade is assessed to be)
An open trading economy for services
According to the OECD’s Services Trade
Restrictiveness Index, trade in services in
Australia is significantly less restricted than the
average for OECD and non-OECD countries.
In 2018–19, two-way trade reached almost
A$200 billion – more than triple the value 20
years ago. This represents an annual growth
rate of 6.3 per cent over the past two decades.
0.00
0.05
0.10
0.15
0.20
0.25
0.30
0.35
0.40
0.45
0.50 Australia’s STRI OECD STRI average
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Non-OECD STRI average
Why Australia Benchmark Report 2020 46
Notes: 1. The Pacific Agreement on Closer Economic Relations (PACER) Plus
have been concluded but was not in force at time of publication. As at June
2020, Australia’s FTA negotiating agenda included: an Australia-European
Union Free Trade Agreement, an Australia-India Comprehensive Economic
Cooperation Agreement, an Australia-UK Free Trade Agreement, a Pacific
Alliance Free Trade Agreement, the Regional Comprehensive Economic
Partnership and Trade in Services Agreement. Information on the status of
FTA negotiations can be found at: https://dfat.gov.au/trade/agreements/
Pages/trade-agreements.aspx.
Sources: Department of Foreign Affairs and Trade; and Austrade
Australia’s liberalised trade with Asia
Australia has entered into 14 free trade agreements
(FTAs), including with the US, China, Japan and
Singapore, and with countries participating in
the Comprehensive and Progressive Agreement
for Trans-Pacific Partnership. These FTAs cover
70 per cent of Australia’s existing trade and this
proportion is expected to exceed 80 per cent if
FTAs currently under negotiation are finalised.
Today’s network covers multiple export sectors,
from agriculture and seafood to minerals and
energy. They make Australia a natural gateway
for trade between Asia-Pacific economies, and
countries in North America and Europe. This FTA
network is steadily expanding. In June 2020,
Australia commenced negotiations with the UK to
conclude a post-Brexit FTA.
Australia’s free trade agreements
China 2015 Korea 2014
Japan 2015
Thailand 2005
Malaysia 2013
Singapore 2003
Indonesia 2020
New Zealand 1983
Peru 2020
Chile 2009
United States 2005
Hong Kong SAR 2020
AANZFTA (2010-11)
ASEAN-Australia-New Zealand Free
Trade Area
CPTPP (2018-19)
Comprehensive and Progressive
Agreement for Trans-Pacific
Partnership
RCEP (under negotiation)
Regional Comprehensive Economic
Partnership
PACIFIC ALLIANCE
(under negotiation)
Has a bilateral free trade agreement with Australia (with date of entry into force)1
Participates in an existing or prospective multilateral free trade agreement with Australia1
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AUSTRALIA’S MULTILATERAL FREE TRADE AGREEMENTS
Why Australia Benchmark Report 2020 47
One of the world’s most business-friendly countries 50
The fourth most valuable pension assets in the world 51
A stable, friendly and efficient business environment 52
Good governance and strong institutions 53
Australia tops rankings for digital quality of life 54
Australia’s lifestyle cities outshine Asia’s commercial hubs 55
STRONG FOUNDATIONS05
Why Australia Benchmark Report 2020 48
A pro-business culture,
sound banks and good
governance.
According to global measures, Australia
outperforms in three key world-of-business
metrics: we are one of the most business-
friendly countries in the world; we have the
highest digital standard of living; and our
cities have a low cost of living compared
to major cities in the Asia-Pacific region.
Australian commerce thrives because our
economy is resilient. According to World
Economic Forum’s 2019 survey, Australia
outranks most developed countries for the
soundness of our banks. Before the onset
of the COVID-19 pandemic, we had one of
the lowest public debt-to-GDP ratio across
major developed economies.
Our regulation is transparent and efficient.
Resilience is based on the fundamentals
– good governance, strong institutions
and the rule of law. The World Bank gives
Australia some of the highest scores in the
Asia-Pacific for the integrity of its legal
system. In an uncertain world, this makes
Australia a secure destination for foreign
investment.
STRONG FOUNDATIONS05
Why Australia Benchmark Report 2020 49
Key indicators of ease of doing business1One of the world’s most business-friendly countries
Australia is one of the easiest places in the world
to do business. According to the World Bank,
Australia improved four places to reach 14th
position in the world for ease of doing business
in 2020. When comparing economies with a
population of more than 20 million, Australia now
ranks fifth in the world, behind Korea (1st), the US
(2nd), the UK (3rd) and Malaysia (4th). Globally,
Australia ranks fourth out of 190 economies in
terms of gaining credit, and seventh for ease of
starting a business.
Economy
Overall
ranking
out of 190
economies
Rank
Strength of
legal rights
index
(0–12)
Depth
of credit
information
index (0–8)
Rank
Time
(days)
Quality
of judicial
processes
index (0–18)
Rank
Procedures
(number)
Time
(days)
Rank
Procedures
(number)
Time
(days)
New Zealand 1 1 12 8 23 216 9.5 1 1 0.5 7 11 93
Singapore 2 37 8 7 1 164 15.5 4 2 1.5 5 9 35.5
Hong Kong SAR 3 37 8 7 31 385 10.0 5 2 1.5 1 8 69
Denmark 4 48 8 6 14 485 14.0 45 5 3.5 4 7 64
Korea 5 67 5 8 2 290 14.5 33 3 8 12 10 27.5
US 6 4 11 8 17 444 14.6 55 6 4 24 16 81
UK 8 37 7 8 34 437 15.0 18 4 4.5 23 9 86
Malaysia 12 37 7 8 35 425 13.0 126 8 17 2 9 41
Australia 14 4 11 8 6 402 15.5 7 3 2 11 11 120.5
Taiwan 15 104 2 8 11 510 14.0 21 3 10 6 10 82
UAE 16 48 6 8 9 445 14.0 17 2 3.5 3 11 47.5
Thailand 21 48 7 7 37 420 8.5 47 5 6 34 14 113
Germany 22 48 6 8 13 499 12.5 125 9 8 30 9 126
Canada 23 15 9 8 100 910 11.0 3 2 1.5 64 12 249
Japan 29 94 5 6 50 360 7.5 106 8 11 18 12 108
China 31 80 4 8 5 496 16.5 27 4 9 33 18 111
France 32 104 4 6 16 447 12.0 37 5 4 52 9 213
Italy 58 119 2 7 122 1120 13.0 98 7 11 97 14 189.5
India 63 25 9 7 163 1445 10.5 136 10 17.5 27 15 106
Vietnam 70 25 8 8 68 400 7.5 115 8 16 25 10 166
Indonesia 73 48 6 8 139 403 8.9 140 11 13 110 18 200
South Africa 84 80 5 7 102 600 8.5 139 7 40 98 20 155
Philippines 95 132 1 7 152 962 7.5 171 13 33 85 22 120
Ease of
doing
business
Getting credit
Enforcing contracts
Starting a business
Dealing with
construction permits
Notes: 1. Doing Business 2020 is the 17th in a series of annual studies
measuring the regulations that enhance business activity and those that
constrain it. The survey covers 12 areas of business regulation. Ten of these
areas – starting a business, dealing with construction permits, getting
electricity, registering property, getting credit, protecting minority investors,
paying taxes, trading across borders, enforcing contracts, and resolving
insolvency – are included in the ease of doing business score and ease of doing
business ranking. Doing Business also measures regulation on employing
workers and contracting with the government, which are not included in
the ease of doing business score and ranking. Data in Doing Business 2020
is current as of 1 May 2019. The indicators are used to analyse economic
outcomes and identify what reforms of business regulation have worked,
where and why. The Australian city covered in the 2019 report is Sydney.
Sources: World Bank Group, Doing Business 2020: Sustaining the pace of
reforms (released 24 October 2019); Austrade
Why Australia Benchmark Report 2020 50
Notes: E = estimated by Willis Towers Watson. 1. The Assets/GDP ratio for
individual markets are calculated in local currency terms, and the total Assets/
GDP ratio is calculated in US$; Note that the ratio of total pension assets to GDP
declined from 2016 with the addition of China. China’s pension assets represent
about 1.5% of total GDP. 2. Only includes autonomous pension funds. Does not
consider insurance companies’ assets. 3. Only Includes IRAs (individual retirement
accounts). 4. Does not include the unfunded benefit obligation of corporate
pension plans (account receivables). 5. Only Includes pension assets from closed
entities. 6. Only includes pension assets for company pension schemes. 7. Only
includes Enterprise Annuity assets. 8. The 10-year growth rate of all markets does
not include assets in the calculation for the following markets: China; India; Italy;
and Malaysia.
Sources: Willis Towers Watson, Thinking Ahead Institute and secondary sources,
Global Pension Funds Assets Study 2020 (released: 20 February 2020); Austrade
Global pension assets, 2019
Percentage of gross domestic product (GDP) ratio1
The fourth most valuable pension assets in the world
Australia’s compulsory superannuation system has
helped create the world’s fourth largest pension-
assets market, valued at A$3 trillion (US$2 trillion)
in 2019. As a proportion of GDP, Australia’s pension
savings are now the second most valuable in the
world. Assets rose to more than 150 per cent
of GDP in 2019 – up from 110 per cent a decade
ago. With an annual growth rate of 6.6 per cent in
US dollar terms, this gives Australia the fastest-
growing pension assets market in the world. Rapid
growth reflects the vitality of Australia’s pension
system, a major driver of the country’s fast-
expanding managed funds industry.
0
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40
60
80
100
120
140
160
180
200
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Average of 22 Markets = 68.8% of world GDP1
Pe
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P
Top 5 pension fund
assets
US$ billion
2009
US$ billion
2019E
Percentage share of
world total 2019
% 10-year CAGR:
2009 to 20198
1. US 13,732 29,196 62.5 7.8%
2. UK 2,102 3,451 7.4 5.1%
3. Japan 3,355 3,386 7.2 0.1%
4. Australia 1,096 2,077 4.4 6.6%
5. Canada 1,112 1,924 4.1 5.6%
Other economies 3,541 6,700 14.3 6.6%
Total 24,938 46,734 100.0 6.5%
Why Australia Benchmark Report 2020 51
Notes: 1. Debt dynamics measures the change in public debt-to-GDP ratio,
weighted by a country’s credit rating and debt level in relation to its GDP.
2. Social capital measures national performance in three areas: social cohesion
and engagement (bridging social capital); community and family networks
(bonding social capital); and political participation and institutional trust
(linking social capital). 3. Trade openness comprises indicators of prevalence
of non-tariff barriers, trade tariffs, complexity of tariffs and border clearance
efficiency.
Sources: (a) World Economic Forum (WEF), Switzerland and Harvard
University, Global Competitiveness Report 2019 (released 9 October 2019,
141 economies); (b) Institute for Management Development (IMD), Switzerland,
World Competitiveness Yearbook 2019 (released: May 2019, 63 economies);
Austrade
Business efficiency and environment, 2019A stable, friendly and efficient business environment
Australia has one of the world’s strongest
and most efficient regulatory environments.
According to the World Bank, the country ranks
highly in terms of economic resilience and the
soundness of its banks. Australia ranks lowest in
the world for debt dynamics (the change in the
public debt-to-GDP ratio); second highest for
social capital (social cohesion and engagement,
community and family networks and political
participation and institutional trust); and third
highest for trade openness.
Australia
US
UK
China
India
Japan
Korea
Hong
Kong
SAR
Singapore
WEF Global Competitiveness Report 2019 Ranking(a) in:
Debt dynamics1 =1 38 =1 41 43 42 =1 =1 39
Social capital2 2 6 8 119 93 90 72 47 15
Trade openness3 3 14 25 71 131 9 67 2 1
Soundness of banks 5 25 52 95 89 33 62 3 2
E-participation =5 =5 =5 29 15 =5 1 n/a 13
Time to start a business (days) 6 31 21 56 90 70 14 =2 =2
Energy efficiency regulation 7 12 8 21 33 31 3 n/a 19
Property rights 9 22 25 58 65 5 39 4 3
Non-performing loans % of gross total loans 10 14 8 26 106 15 3 6 17
Judicial independence 10 25 26 47 51 5 69 8 14
IMD World Competitiveness Yearbook 2019 Ranking(b) in:
State ownership of enterprises is not a threat to business activities 4 8 17 47 29 14 49 15 27
Strong resilience of the economy to economic cycles 5 12 29 3 16 50 40 13 18
Public sector contracts are sufficiently open to foreign bidders 5 40 13 47 34 58 41 6 8
Unemployment legislation provides an incentive to look for work 7 5 14 23 30 27 40 4 1
Justice is fairly administered 7 23 18 30 31 20 49 8 10
Stock markets provide adequate financing to companies 7 1 6 40 26 18 34 3 14
Government protectionism does not impair business conduct 8 43 22 37 34 40 54 7 10
Competition legislation is efficient and prevents unfair competition 8 20 16 37 35 12 48 15 10
Central bank policy has a positive impact on the economy 9 23 24 36 32 50 35 19 2
Why Australia Benchmark Report 2020 52
Worldwide governance indicators, 20191Good governance and strong institutions
The quality of governance in Australia ranks
among the best in the world. Australia’s
regulatory environment, rule of law and lack of
corruption are all graded highly by the World
Bank. Strong governance is key to economic
growth and security, providing a drawcard for
multinationals expanding their businesses or
considering Australia as a base for expansion in
the Asia-Pacific region.
Notes: 1. The Worldwide Governance Indicators (WGI) project reports
aggregate and individual governance indicators for over 200 countries and
territories over the period 1996–2018, for six dimensions of governance in
the above table. They are based on over 30 individual data sources. Economy
scores are reported as percentile ranks, with higher values indicating better
governance ratings. The WGI are produced by Daniel Kaufmann, Natural
Resource Governance Institute (NRGI) and Brookings Institution.
Sources: The World Bank, The Worldwide Governance Indicators, 2019 Update
(released 20 September 2019). Full interactive access to the aggregate
indicators, and the underlying source data, is available at http://info.
worldbank.org/governance/wgi/; Austrade
Economy
Voice and
accountability
Political stability and absence
of violence/terrorism
Government
effectiveness
Regulatory quality
Rule of law
Control of
corruption
New Zealand 99.5 99.0 93.8 98.6 98.1 99.5
Switzerland 99.0 95.2 99.5 96.6 99.0 96.6
Norway 100.0 90.5 97.6 95.7 99.5 97.6
Sweden 97.5 80.5 96.2 97.6 98.6 98.1
Netherlands 97.0 78.1 96.6 99.0 96.2 96.2
Canada 96.1 84.8 94.7 93.8 94.7 94.7
Australia 95.6 82.9 92.8 98.1 92.8 92.8
Ireland 92.1 86.2 89.9 92.8 89.9 90.9
Germany 95.1 66.7 93.3 94.7 91.3 95.2
Singapore 41.9 98.6 100.0 99.5 97.1 99.0
Japan 80.3 88.1 94.2 88.0 90.4 89.4
Hong Kong SAR 62.1 74.8 98.1 100.0 95.2 92.3
UK 93.6 48.1 88.0 96.2 91.8 93.3
US 81.3 61.9 92.3 92.3 89.4 88.5
Taiwan 78.8 75.7 88.5 89.4 83.2 82.2
France 88.2 51.9 91.8 83.7 88.9 88.0
Korea 73.9 65.2 84.1 82.2 86.1 72.1
Spain 82.8 55.2 79.3 80.3 80.3 72.6
Italy 81.8 57.6 68.3 73.6 61.5 62.0
Malaysia 41.4 54.3 81.3 74.0 74.5 63.9
India 60.1 14.8 63.9 46.6 55.3 49.5
Indonesia 52.2 27.6 59.1 51.0 42.8 46.2
Thailand 20.2 19.5 66.8 59.6 54.8 40.9
China 8.9 36.7 69.7 48.1 48.1 45.7
Brazil 60.6 31.9 36.1 39.9 44.2 40.4
Vietnam 9.4 53.8 53.4 36.5 54.3 38.0
Philippines 47.8 12.9 55.3 56.7 34.1 34.1
Why Australia Benchmark Report 2020 53
Notes: The Digital Quality of Life (DQL) index is based on data provided by
Freedom House, the United Nations, the World Economic Forum, Consumers
International, and the International Telecommunication Union. The results
for internet speed, internet prices, personal data protection legislation,
e-government availability, entertainment content availability, and the global
cyber security index were weighted to make up the final DQL index. This study
on digital quality of life combines six key indicators into one figure to compare
and analyse people’s online experiences in 65 countries, covering a population
of approximately 5.5 billion in every major region of the world. The number in
brackets indicates the country’s ranking across 65 countries.
Sources: Surfshark (2019) Digital Quality of Life 2019 (last updated: 20
August 2019, https://surfshark.com/dql); Austrade
Digital quality of life
Global rankings, 2019
Australia tops rankings for digital quality of life
Australia was ranked first out of 65 countries in
Surfshark’s 2019 Digital Quality of Life rankings,
followed by France and Singapore. The other
top 10 countries include Norway, Japan, Canada,
Denmark, Korea, Italy and Sweden. Factors
contributing to the nation’s prime spot include:
strong data protection laws; high content
availability; an affordable mobile internet; a
fast mobile internet speed; a well-developed
e-government system; and a solid level of cyber
security.
0.0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9
Australia (1)
France (2)
Singapore (3)
Norway (4)
Japan (5)
Canada (6)
Denmark (7)
Korea (8)
Italy (9)
Sweden (10)
US (11)
Netherlands (12)
Spain (15)
UK (17)
Germany (18)
New Zealand (20)
Russia (27)
UAE (31)
India (32)
Mexico (37)
Malaysia (41)
Philippines (51)
China (47)
South Africa (38)
Brazil (52)
Indonesia (57)
Thailand (58)
Why Australia Benchmark Report 2020 54
Cost of living: City rankings in Asia and rest of world
Mercer: Cost of Living Index rankings, March 2020
Australia’s lifestyle cities outshine Asia’s commercial hubs
Each year, hundreds of companies – from tech
startups to multinationals – set up offices in
Australian cities, including as springboards
into Asia. Fortunately, Australia’s successful
pandemic-containment measures have helped
maintain the practical, lifestyle appeal of our
state capitals. According to Mercer’s 2020 Cost
of Living Index, Australia’s lifestyle cities have
become more internationally competitive, with
a lower cost-of-living rating than most major
cities in the Asia-Pacific region.
Sources: Mercer Cost of Living Index 2020 (https://www.mercer.com/content/
dam/mercer/attachments/private/gl-2020-2020-col-ranking-mercer.pdf);
accessed June 2020
New Delhi 101
Mumbai 60
Tokyo 3
Osaka 22
Taipei 28
Hong Kong SAR 1
Guangzhou 20
Seoul 11
Jakarta 86
Kuala Lumpur 144Singapore 5
Bangkok 35
Yangon 83
Hanoi 116
Ho Chi Minh City 111
Manila 80
Shanghai 7Beijing 10
Auckland 103
Wellington 123
Ashgabat, Turkmenistan 2
Zurich, Switzerland 4
New York, US 6
N’Djamena, Chad 15
San Francisco, US 16
Los Angeles, US 17
London, UK 19
Milan, Italy 47
Paris, France 50
Frankfurt, Germany 76
Vancouver, Canada 94
Toronto, Canada 98
Other city rankings
Perth 104
Adelaide 126
Melbourne 99
Brisbane 126
Sydney 66
Canberra 118
Why Australia Benchmark Report 2020 55
ABN: 11 764 698 227
18-19-235. Publication date: August 2020
ISSN 2205-9415 (Print)
ISSN 2205-9423 (Online)
Disclaimer
This report has been prepared by the Commonwealth of Australia represented by the Australian Trade and Investment Commission (Austrade). The report is a general
overview and is not intended to provide exhaustive coverage of the topic. The information is made available on the understanding that the Commonwealth of Australia is
not providing professional advice.
While care has been taken to ensure the information in this report is accurate, the Commonwealth does not accept any liability for any loss arising from reliance on the
information, or from any error or omission, in the report.
Any person relying on this information does so at their own risk. The Commonwealth recommends the person exercise their own skill and care, including obtaining
professional advice, in relation to their use of the information for their purposes.
The Commonwealth does not endorse any company or activity referred to in the report, and does not accept responsibility for any losses suffered in connection with any
company or its activities.
The Australian Trade and Investment Commission (Austrade) is Australia’s leading trade and investment
agency.
We are experts in connecting Australian businesses to the world and the world to Australian businesses.
Austrade is the national point-of-contact for investors. We partner with state and territory governments
to provide the information and contacts you need to establish or expand a business in Australia.
We help companies around the world to identify and take up investment opportunities in Australia as well
as to source Australian goods and services for their global supply chains.
To discover how we can help you and your business, visit:
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ABOUT AUSTRADE
Why Australia Benchmark Report 2020 56
