Leslie Massey
Australia is a highly developed country with a high quality of life, advanced economy, and strong human development index. However, there are varying levels of development within the country, with the eastern region being more developed than the western region. Australia also faces unique challenges, such as a concentrated export base and a small population spread across a large land mass. In comparison to less developed countries, Australia has a much lower population density and higher per capita income. Australia actively supports least developed countries through international development assistance and participation in global initiatives.
| Characteristics | Values |
|---|---|
| Population density | 3.48 people per km² |
| Population growth | Low |
| Economy | Strong, with increasing GDP per capita |
| Exports | Concentrated in bulk commodities |
| Human Development Index | High |
| Life expectancy | 82.2 years |
| Education | High |
| Health | High |
| Infrastructure | High |
| Services | High |
| Tourism | High |
| Credit rating | AAA |
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What You'll Learn
Population density
Australia has a low population density compared to other countries. As of 2022, the population density of Australia was reported as 3.4/km^2 (8.8/sq mi), making it the third least densely populated country in the world, after Namibia and Mongolia. The population density figure for Australia varies slightly depending on the source, with some sources citing a figure of 3.48 people per km^2, 4 people per km^2, or 3.6 people per square kilometre of total land area. This low population density is due to Australia's large land area of 7,682,300 km^2 (2,966,151 sq. miles) and a population of around 27,964,500 as of August 2025.
The population density of Australia has been increasing over time. Between 1950 and 2024, the population density of Australia increased from 1.06 to 3.48 people per square kilometre. This represents a 226.68% density increase over a 74-year timeframe. Australia's population density is expected to continue rising in the future, with projections showing an increase to 5.62 people per square kilometre by the year 2100. This would represent a 427.62% change in population density from 2024 to 2100.
In comparison, the population density of less developed regions (excluding the least developed countries) is significantly higher than that of Australia. As of 2024, the population density of these regions was 92.82 inhabitants per square kilometre, which is expected to increase to 96.88 people per square kilometre by the year 2100. This is a much faster rate of increase compared to Australia, with a 300.86% change in population density projected from 2024 to 2100.
While population density can give an indication of how crowded a country or region is, it is important to consider that not all land areas are habitable. Additionally, population density can vary within a country, with some areas being more densely populated than others. In Australia, the population is concentrated mainly in urban areas, particularly on the Eastern, South Eastern, and Southern seaboards. Australia has five cities (including their suburbs) with a population of over one million people, and 86.51% of the population is urban.
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Economic development
Australia is a developed country with a strong economy. It has one of the highest per-capita income levels in the world and has achieved 23 years of consecutive economic growth. The country has a mixed-market economy, with a large proportion of government interference, making it one of the most desirable nations to live in.
Australia's economic development is reflected in its increasing GDP per capita, which is the highest when compared to other chosen countries. The country's economy is heavily dependent on bulk commodities, with more than half of its exports coming from just three commodities. This concentration is unique among advanced economies and has made Australia vulnerable to the volatility of commodity prices.
Despite this, Australia has maintained a stable economy with minimal currency volatility and a triple-A credit rating. The country has a low population density, with fewer people than California, despite its large land area. This has contributed to its development, allowing for a high quality of life and well-developed infrastructure.
The Australian government has supported the country's economic stability, and its eastern region is more developed than the west due to the concentration of major cities like Sydney, Melbourne, and Brisbane. The western region, however, attracts tourists with its natural features.
In summary, Australia's economic development is characterised by a strong and stable economy, high GDP per capita, a well-developed mixed-market system, and a high quality of life for its citizens.
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Human Development Index
Australia is considered a developed country, with one of the highest per-capita income levels in the world. The Human Development Index (HDI) is a metric compiled by the United Nations Development Programme to assess a country's average achievement in three basic dimensions: a long and healthy life, knowledge, and a decent standard of living. It was first launched in 1990 and has been released annually since, except for 2012 and 2020/2021. The HDI report considers various indicators, including life expectancy, literacy rate, rural populations' access to electricity, GDP per capita, exports and imports, homicide rate, multidimensional poverty index, income inequality, and internet availability.
The HDI report categorises countries with scores below 0.55 as having "low human development". These countries, known as Least Developed Countries (LDCs), often face challenges such as unstable governments, widespread poverty, lack of access to healthcare, and poor education. They also experience low income and life expectancy, along with high birth rates. The HDI helps the United Nations identify which countries, particularly the LDCs, require assistance.
While Australia is considered a developed country, it has a lower population density compared to less developed regions. As of 2024, less developed regions excluding least developed countries had a population density of 92.82 inhabitants per square kilometre, which is 89.34 people more per square kilometre than Australia. Between 1950 and 2024, Australia's population density increased from 1.06 to 3.48 people per square kilometre, and it is projected to reach 5.62 by 2100.
The HDI report is a valuable tool for understanding the development status of countries and identifying areas where support may be needed. It is essential to consider various factors, including economic indicators, social well-being, and access to basic services, to gain a comprehensive overview of a country's development.
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Export concentration
Australia has plentiful supplies of natural resources, including the second-largest accessible reserves of iron ore in the world, the fifth-largest reserves of coal, and significant gas resources. Commodities are spread unevenly across the country, with Western Australia and Queensland having the highest concentration of known reserves. Almost all iron ore mining occurs in Western Australia, two-thirds of coal mining is in Queensland, and the bulk of natural gas production is from these two states.
For a long time, commodities have made up a sizeable share of Australia's exports. In 2000, less than one-third of Australia's exports came from resources, but today, more than half are made up of just three commodities. Australia's exports are now more concentrated than they have been for over 50 years. This extreme dependence on bulk commodities is almost unique among advanced economies.
The high concentration of exports in a few commodities has exposed Australia's economy to the volatility of commodity prices. As the prices of iron ore and coal skyrocketed, Australians embraced the idea of making more money by selling iron ore than manufactured goods. This led to the decline of manufacturing suburbs around Sydney and Melbourne, which transformed into real estate. However, as commodity prices started to decline, the real costs of Australia's export concentration became evident.
To counter this, Australia has seen growth in the non-mining sector, with service exports making a noticeable contribution to GDP growth. Tourism, education, and business services exports have all increased. Additionally, the depreciation of the Australian dollar between 2013 and 2015 supported activity in the non-mining tradable sector, which includes agriculture, manufacturing, and some services.
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Population growth
Australia's population growth has been influenced by various factors, including immigration and urbanisation. The country's population has grown significantly since British colonisation in 1788, with the number of Indigenous Australians estimated to be between 300,000 and 2,400,000 at that time. Due to waves of immigration, the European population rose sharply in the late 18th and 19th centuries. However, this percentage is now declining.
In 2022, Australia's population was around 26 million, with a median age of 38.5 years. The population is projected to reach between 34.3 and 45.9 million by 2071, with the median age increasing to between 43.8 and 47.6 years. The current annual population growth rate is 1.4%, but it is expected to slow down to between 0.2% and 0.9%.
The population density in Australia is low compared to less developed regions. Currently, Australia's population density is 3.48 people per square kilometre, while less developed regions (excluding the least developed countries) have a population density of 92.82 people per square kilometre. This disparity is expected to increase further by 2100, with Australia's population density projected to reach 5.62 people per square kilometre, while the density in less developed regions is estimated to increase to 96.88 people per square kilometre.
Urbanisation has played a significant role in Australia's population distribution. Currently, 86.51% of the population resides in urban areas, particularly along the Eastern, South Eastern, and Southern coastlines. This trend is reflected in the high population concentrations in cities like Sydney and Melbourne. Australia's urbanisation rate of 89% makes it one of the most urbanised countries globally.
The rate of natural increase, which considers births and deaths, has fluctuated over time. It peaked at 17.4 per thousand population in 1912-1914 and declined during the Great Depression. After World War II, it increased sharply due to the baby boom and immigration. However, since 1962, the rate of natural increase has decreased due to falling fertility rates.
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Frequently asked questions
Australia is considered a developed country. It has one of the highest per-capita income levels in the world and its population density is much lower than that of less developed regions. Australia also has a high quality of life, with good health, education, infrastructure, and other services.
The United Nations uses three criteria to classify a country as a Least Developed Country (LDC): low-income (three-year average GNI per capita of less than US $905), human resource weakness (based on indicators of nutrition, health, education, and adult literacy), and economic vulnerability (based on the instability of agricultural production, exports, etc.). Australia does not meet these criteria and is therefore not considered an LDC.
No, the eastern part of Australia is more developed than the western part. This is because most of Australia's biggest cities, such as Sydney, Melbourne, and Brisbane, are located in the east. As a result, the infrastructure and services in the east are better and constantly improving.
