Efficient agricultural and mining industries. Vast mineral deposits. Highly profitable tourist industry with huge untapped potential. Successful investor in booming Southeast Asian economies, such as Vietnam.
Weaknesses
May suffer from EU and NAFTA protectionist policies. Political instability in some export markets in Southeast Asia could dent exports. Competition from Asian economies with lower wage rates and poorer working conditions. Balance of payments deficit. Unemployment likely to remain high.
Profile
Australia's companies are concentrating on the growing Asian market. From accounting for 25% of exports in 1960, Asia now accounts for 60% of Australia's trade. Japan remains its most important trading partner.
In order to compete in Asia, Australia's economy has been undergoing massive structural adjustment. The ALP government has slowly been removing the tariffs that made Australia one of the most heavily protected economies within the OECD. Higher unemployment and the collapse of many businesses accompanied the change. In 1994, however, strong growth was seen.
