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Australia is a highly developed country with a mixed economy and the 14th-largest national economy by nominal GDP as of 2023. The Australian economy has experienced intermittent economic liberalisation since the early 1980s, floating its dollar and undertaking financial deregulation. Despite the global recession of 2008-2009, Australia's economy proved resilient, avoiding a technical recession until 2020 and achieving the longest run of uninterrupted GDP growth in the developed world. As of 2025, Australia's GDP continues to grow, rising 0.2% in seasonally adjusted chain volume measures, with the RBA cutting interest rates to stimulate the economy. Australia's economy is dominated by its service sector, which employed 78.8% of the labour force in 2017, and is strongly intertwined with the economies of East and Southeast Asia, particularly China, its main export and import partner.
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What You'll Learn
GDP and growth
Australia is a highly developed country with a mixed economy. As of 2023, it had the 14th-largest national economy by nominal GDP, the 19th-largest by PPP-adjusted GDP, and was the 21st-largest goods exporter and 24th-largest goods importer.
Australia has a strong service sector, which in 2017 comprised 62.7% of GDP and employed 78.8% of the labour force. The Australian economy has been resilient and stable, with a long run of uninterrupted GDP growth—it did not experience a recession from 1991 to 2020. In 2021, the country's GDP was estimated at $1.98 trillion.
The country did not suffer during the 2008-2009 global financial crisis due to factors such as government stimulus spending, its proximity to China's booming economy, and the related mining boom. The IMF and the Reserve Bank of Australia predicted Australia would sustain more than 2% GDP growth in 2009, while many Western nations went into recession. The Australian dollar's 30% drop was also beneficial, shielding the country from the crisis and helping to slow growth and consumption.
The Australian economy has undergone intermittent economic liberalisation since the early 1980s. In 1983, under treasurer Paul Keating, the Australian dollar was floated, and financial deregulation occurred. The country experienced a brief recession in the early 1990s due to the stock market collapse on Black Monday in October 1987, but the global economy recovered quickly.
The Australian Securities Exchange in Sydney is the 16th-largest stock exchange globally in terms of domestic market capitalisation. The country's economy is closely intertwined with East and Southeast Asian countries, accounting for about 64% of exports in 2016. China is Australia's main export and import partner.
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Financial markets
Australia has a dynamic and well-regulated financial ecosystem, including equity and bond markets, and commodities. The Australian Securities Exchange (ASX) is a key element, attracting both domestic and international investors. The ASX is globally recognised for its market liquidity and innovation, for example, its early attempt to utilise blockchain for clearing and settlement.
The equity market, centred around the ASX, includes global giants in sectors like mining, finance, and healthcare. Leading listed companies include BHP Group Limited, Commonwealth Bank, and CSL. The bond market, where corporations and the government issue debt to fund operations, has provided a channel of low-risk investment. Pension funds hold around 20% of outstanding CGS as a low-risk, long-term asset. The currency market has facilitated the trading of the Australian dollar, one of the world's most traded currencies due to its link to commodities and ties with Asia-Pacific markets. The derivatives market is also well-developed, providing options for investors looking to hedge or speculate.
The Australian financial market is overseen by key bodies, including the Australian Securities and Investments Commission (ASIC) and the Reserve Bank of Australia (RBA). These bodies promote transparency, market integrity, and consumer protection, resulting in a regulatory framework considered one of the world's strongest, fostering investor confidence. Australia's prudential framework is at the forefront of international best practices, with Corporations law including provisions relating to the trading of government and corporate debt.
Looking forward, Australia's financial markets are expected to benefit from the projected real GDP growth in the Asia-Pacific region and the adoption of emerging trends like sustainable finance and digital assets. With a focus on innovation, regulatory vigilance, and openness to global trade, Australia aims to maintain its appeal as a financial hub, particularly in green financing and technology integration.
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Trade and exports
Australia has a highly developed and stable mixed economy. As of 2023, it was the 14th-largest economy by nominal GDP, the 19th-largest by PPP-adjusted GDP, and was the 21st-largest goods exporter and 24th-largest importer.
The Australian economy is heavily intertwined with the countries of East and Southeast Asia, known as ASEAN Plus Three (APT), which accounted for about 64% of exports in 2016. China is Australia's main export and import partner by a wide margin.
The Australian Securities Exchange in Sydney is the 16th-largest stock exchange in the world in terms of domestic market capitalization and has one of the largest interest rate derivatives markets in the Asia-Pacific region. Some of the country's largest companies include Commonwealth Bank, BHP, CSL, Westpac, NAB, ANZ, Fortescue, Wesfarmers, Macquarie Group, Woolworths Group, Rio Tinto, Telstra, Woodside Energy, and Transurban.
The Australian dollar's 30% drop in 2009 was seen as a boon for trade, shielding the country from the global financial crisis and helping to slow growth and consumption. Australia's recession did, however, negatively impact New Zealand, as Australia was (and still is) New Zealand's biggest export market.
The World Intellectual Property Organization (WIPO) has assisted in preparing national studies measuring the size of over 50 copyright industries worldwide. According to WIPO-compiled data, the contribution of creative industries to the national economy varies from 2% to 11% depending on the country. In Australia, the copyright industries contributed $122.8 billion to the economy in 2016, amounting to 7.4% of the country's total economic output.
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Employment and labour
Australia is a highly developed country with a mixed economy. As of 2023, Australia was the 14th-largest national economy by nominal GDP (gross domestic product), the 19th-largest by PPP-adjusted GDP, the 21st-largest goods exporter, and the 24th-largest goods importer.
The Australian economy is dominated by its service sector, which in 2017 comprised 62.7% of the GDP and employed 78.8% of the labour force. The service sector includes creative industries, which contributed $122.8 billion to the Australian economy in 2016, amounting to 7.4% of Australia's total economic output.
The Australian government has expressed its commitment to full employment by releasing a White Paper outlining its 'inclusive' full employment objective. This objective aims to broaden labour market opportunities and increase the level of employment that can be sustained over time.
Labour force survey data from the Australian Bureau of Statistics (ABS) provides detailed insights into employment and unemployment in Australia. In May 2025, employment increased by 28,000 people (0.2%) to a total of 14,636,800. Full-time employment increased by 20,500, while part-time employment rose by 7,500. The employment-to-population ratio remained at 64.3%.
The ABS also highlights the existence of a large group of potential workers who are not counted as part of the labour force but wish to work. These individuals typically do not meet the ABS's definition of unemployment because they are either not immediately available or not actively seeking employment. This group represents a significant source of labour supply, and their monthly flows into and out of the labour force are substantial.
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Economic outlook
Australia is a highly developed country with a mixed economy. As of 2023, Australia was the 14th-largest economy in the world by nominal GDP, the 19th-largest by PPP-adjusted GDP, the 21st-largest exporter of goods, and the 24th-largest importer of goods.
The Australian economy has been resilient and stable, avoiding a recession from 1991 until 2020. The country took the record for the longest run of uninterrupted GDP growth in the developed world, with the March 2017 financial quarter marking the 103rd quarter and the 26th year since Australia had a technical recession. As of June 2021, the country's GDP was estimated at $1.98 trillion.
The service sector dominates the Australian economy, comprising 62.7% of GDP and employing 78.8% of the labour force in 2017. The mining industry, despite a recent decline, added 8.4% to GDP during the peak of the mining boom in 2009-2010.
Australia's economy is closely intertwined with the countries of East and Southeast Asia, collectively known as ASEAN Plus Three (APT). In 2016, APT accounted for approximately 64% of Australia's exports, with China being the country's primary export and import partner.
Looking ahead, the Reserve Bank of Australia (RBA) has cut its policy rate and is expected to maintain a dovish stance due to weaker global growth and heightened uncertainty. Despite these challenges, Australia's economic outlook remains positive, with forecasts suggesting continued growth, managed inflation, and a stable labour market.
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Frequently asked questions
As of June 2021, Australia's GDP was estimated at $1.98 trillion.
As of 2023, Australia was the 14th-largest national economy by nominal GDP, the 19th-largest by PPP-adjusted GDP, the 21st-largest goods exporter, and the 24th-largest goods importer.
Australia's economy is dominated by its service sector, which in 2017 comprised 62.7% of the GDP and employed 78.8% of the labour force. The mining industry has also played a significant role, with the total value-added of the industry reaching 8.4% of GDP during the boom of 2009-2010. Australia's economy is also strongly intertwined with the countries of East and Southeast Asia, particularly China, which is Australia's main export and import partner.
