With a strong economy boasting a per capita GDP on par with the four dominant West European economies, Australia is fueled by robust business and consumer confidence and high export prices for raw materials (mining) and agricultural products. Some key factors behind the economy's expansion are directly correlated to low inflation, a dynamic housing boom and strengthened ties with China. Drought, the demand for imports and a strong currency have increased the trade deficit, while a tight labor market and undersized infrastructure are constraining exports. Since 2002, the nation’s budget has enjoyed a surplus.

The 2007 estimated GDP was $773 billion. Considering the official exchange rate, that works out to be $908.8 billion showing a real growth rate of 4.3% which is $37,300 per capita. Of this 3% is agriculture, 26.4% for industry and services equal a whopping 70.6%

The human picture
Showing an unemployment rate at only 4.4%, Australia’s 10.95 million person workforce is broken down thusly: Agriculture 3.6%, industry 21.2% and services standing at 75.2%.
The household income or consumption by percentage share shows the lowest 10% at 2% and highest 10% at 25.4%.
The Distribution of family income (Gini index) is 30.5 (2006 estimate).
The inflation rate is 2.3%.
The gross fixed investment is 27.3% of GDP.

In 2007, the Commonwealth’s budget showed a surplus of $6.1 billion (revenues = $321.9 billion, expenses = $135.8 billion.) It eliminated public debt in 2006. However, Australia continues a gross debt issue of 15.6% of GDP to support the market for risk-free securities.

Australia’s agricultural products include wheat, barley, sugarcane, fruits, cattle, sheep and poultry. The major industries include mining, industrial and transportation equipment, food processing, chemicals and steel showing a growth rate of about 4.1%.

Yet another surplus is in the form of electricity. Australia, in 2005, produced 236.7 billion kWh and only uses 219.8 billion kWh annually. However, this is not so with oil. Producing 540,000 bbl per day (2007), she exported 333,200 bbl per day, yet uses 903,200 bbl per day; therefore, having to import 611,400 bbl per day. The nation’s oil reserves were estimated at 1.437 billion bbl (Jan. 1, 2006).

Natural gas production was 38.62 billion cu m. Using only 25.72 billion cu m, Australia was able to export 122.9 billion cubic meters in 2005. They hold 750.6 billion cu m in reserve.
In 2007, Australia showed a trade deficit balance of $56.78 billion. Exporting coal, iron, ore gold, meat, alumina, wheat, machinery and transport equipment to Japan 19.1%, China 14.7%, South Korea 8%, India 5.9%, US 5.8% and New Zealand 5.2%. Imports included machinery and transport equipment, computers and office machines, telecommunication equipment parts, crude and petroleum products from China 14.3%, US 12.9%, Japan 9.6%, Singapore 6.1%, Germany 5.2%, UK 4.4% and Thailand 4%.

The Commonwealth shows reserves of foreign exchange and gold totaling $26.91 billion (Dec., 2007) and an external debt of 826.4 billion.

The stock of direct foreign investment at home is $315 billion abroad is $280.6 billion. The market value of publically traded shares is $804.1 billion.