Australia is a wealthy country; it generates its income from various sources including mining-related exports, telecommunications, banking and manufacturing. It has a market economy, a relatively high GDP per capita, and a relatively low rate of poverty. In terms of average wealth, Australia ranked second in the world after Switzerland in 2013, although the nation's poverty rate increased from 10.2 per cent to 11.8 per cent, from 2000/01 to 2013 It was identified by the Credit Suisse Research Institute as the nation with the highest median wealth in the world and the second-highest average wealth per adult in 2013. The Australian dollar is the currency for the nation, including Christmas Island, Cocos (Keeling) Islands, and Norfolk Island, as well as the independent Pacific Island states of Kiribati, Nauru, and Tuvalu. With the 2006 merger of the Australian Stock Exchange and the Sydney Futures Exchange, the Australian Securities Exchange became the ninth largest in the world.
Ranked third in the Index of Economic Freedom (2010), Australia is the world's twelfth largest economy and has the fifth highest per capita GDP (nominal) at $66,984. The country was ranked second in the United Nations 2011 Human Development Index and first in Legatum's 2008 Prosperity Index.All of Australia's major cities fare well in global comparative livability surveys; Melbourne reached first place on The Economist's 2011, and 2013 world's most liveable cities lists, followed by Adelaide, Sydney, and Perth in the fifth, seventh, and ninth places respectively. Total government debt in Australia is about $190 billion– 20% of GDP in 2010.Australia has among the highest house prices and some of the highest household-debt levels in the world.
An emphasis on exporting commodities rather than manufactured goods has underpinned a significant increase in Australia's terms of trade since the start of the 21st century, due to rising commodity prices. Australia has a balance of payments that is more than 7% of GDP negative, and has had persistently large current account deficits for more than 50 years. Australia has grown at an average annual rate of 3.6% for over 15 years, in comparison to the OECD annual average of 2.5%. Australia was the only advanced economy not to experience a recession due to the global financial downturn in 2008–2009. However, the economies of six of Australia's major trading partners have been in recession, which in turn has affected Australia, significantly hampering its economic growth in recent years.From 2012 to early 2013, Australia's national economy grew, but some non-mining states and Australia's non-mining economy experienced a recession.
The Hawke Government floated the Australian dollar in 1983 and partially deregulated the financial system. The Howard Government followed with a partial deregulation of the labour market and the further privatization of state-owned businesses, most notably in the telecommunications industry. The indirect tax system was substantially changed in July 2000 with the introduction of a 10% Goods and Services Tax (GST).In Australia's tax system, personal and company income tax are the main sources of government revenue.
In May 2012, there were 11,537,900 people employed (either full- or part-time), with an unemployment rate of 5.1%.Youth unemployment (15–24) stood at 11.2%.Data released in mid-November 2013 showed that the number of welfare recipients had grown by 55%. In 2007 228,621 Newstart unemployment allowance recipients were registered, a total that increased to 646,414 in March 2013.According to the Graduate Careers Survey, full-time employment for newly qualified professionals from various occupations has declined since 2011 but it increases for graduates three years after graduation.
Over the past decade, inflation has typically been 2–3% and the base interest rate 5–6%. The service sector of the economy, including tourism, education, and financial services, accounts for about 70% of GDP.Rich in natural resources, Australia is a major exporter of agricultural products, particularly wheat and wool, minerals such as iron-ore and gold, and energy in the forms of liquified natural gas and coal. Although agriculture and natural resources account for only 3% and 5% of GDP respectively, they contribute substantially to export performance. Australia's largest export markets are Japan, China, the US, South Korea, and New Zealand. Australia is the world's fourth largest exporter of wine, and the wine industry contributes $5.5 billion per year to the nation's economy.