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Home > Country Profiles > Australia

Country Profiles

Australia - Economy

Whitaker's Almanack Version

Financial Outlook

In December 2013 the Australian Treasury forecast that the economy would grow by 2.5% during 2014 and 2015, a downgrade from an earlier prediction. The Treasury also warned that Australia’s budget could remain in deficit for a decade if urgent “remedial action” was not taken to improve the country’s finances. Australia has been badly hit by a strong currency and the slowdown in China, which accounts for more than a quarter of exports. Chinese demand for natural resources such as iron ore and coal has driven the economy over the past decade, but exports have been hit by falling demand and prices. The government has said that the economy is undergoing a tough transition and that conditions will remain challenging because global economic conditions remain “subdued.” Meanwhile, in May 2013 Ford announced that it would stop making cars in Australia in 2016, and in December, Holden—a subsidiary of General Motors—announced that it would also cease auto production in Australia by the end of 2017, citing the strong currency, high manufacturing costs, and the small domestic market.

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Further reading on Australia

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