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performance and position across key economic and financial related indicators. The IDC has been
updated to include data effective to 15 June 2012.
Points of interest include:
In its latest World Economic Outlook, the International Monetary Funds (IMF) confirms that Australias
economic fundamentals are strong with the real GDP growth projected to outperform every major
advanced economy in 2012 and 2013. The Australian economy will likely grow by 3.0 per cent in 2012 and
3.5 per cent in 2013. These rates are broadly in line with Australian Treasurys projections. Looking forward,
Australias economy is estimated to grow by an average annual rate of 3.4 per cent between 2012 and
2017. This rate will well exceed that of the USA, Canada, the UK, and is more than double that of Japan,
France, Germany and Italy.
Australias headline Consumer Price Index (CPI) increased by 0.1 per cent in the March quarter following no
change in the December 2011 quarter. CPI rose 1.6 per cent through the year to the March 2012 quarter,
compared with a rise of 3.1 per cent through the year to the December 2011 quarter. The trimmed mean for
the March quarter, year-on-year, stands at 2.2 per cent, within the Reserve Bank of Australias (RBA) target
band of 2 to 3 per cent.
Australias unemployment rate has edged up by 0.1 points to 5.1 per cent from April to May. Year-on-year,
the unemployment rate has risen 0.2 points. The ABS stated that full-time employment increased by
46,100 (0.6 per cent) in May while part-time employment decreased by 7,200 (0.2 per cent). The Australian
unemployment rate remains low compared to other advanced economies including Canada (7.3 per cent),
the UK (8.2 per cent), the US (8.2 per cent), France (9.6 per cent), and Italy (9.8 per cent).
Australias two-way trade with China in 2011 was A$121 billion. China was Australias largest two-way
trading partner, as well as Australias largest export market (A$77 billion) and source of imports (A$44
billion). Japan remains Australias second largest trading partner with a total two-way trade value of A$73.
The US remains a significant trading partner with a two-way value of A$54 billion.
At the June 2012 meeting, the RBA Board decided to lower the cash rate by 25 basis points to 3.50 per
cent, effective June 6. The latest move followed the 50 basic point interest cut on 2 May 2012. The RBA
noted in that recent domestic data generally had not suggested a significant weakening in conditions
compared with the forecasts a month earlier. The Central Bank also indicated that there was clear
evidence suggesting a softening in global conditions, and uncertainty about the future in Europe had
increased significantly.
IMF latest statistics show the low levels of General Government Net Debt as a percentage of GDP in
Australia compared to other economies. Net debt is a commonly quoted measure of a governments
financial strength. The IMF forecast for 2012 in Australia is 9.5 per cent of GDP while the forecast for Japan is
135.2 per cent, Italy 102.3 per cent, the UK 84.2 per cent, the US 83.7 per cent, and France 83.2 per cent.
On 12 June 2012, Moodys confirmed that the outlook for Australias Aaa foreign and local currency
ratings remains stable. The credit agency stated that Australias economic strength is very high, based
on the countrys economic diversity, economic performance during the past two decades, relatively
good growth outlook and high income per capita. Moodys assesses Australias institutional strength as
very high, a classification shared by all Aaa-rated countries and reflecting overall governance, rule of law,
effective monetary and regulatory institutions, and transparency. Moodys notes that even at its peak,
Commonwealth government and general government debt remains low by global standards, and the 20122013 budget forecasts a renewed downward trend in debt. As a result, the Commonwealth will continue
to have one of the strongest financial positions among Aaa-rated governments. The report also notes that
Australia has very low susceptibility to event risk.
International Data
Comparisions
June 2012
Source Australia
China Japan USA South
Singapore
UK India
Thailand
Germany
Taiwan
Hong
Italy
France
Canada
Brazil
| 2012
Korea
Kong
Total Area Land and Water (thousand sq km)
CIA
7,741
9,597 378 9,827 100 0.7 244 3,287 513 357 36 1.1 301 644 9,985
8,515
IMF
23.0 1,355 127.3 314.7 49.1 5.4 63.1 1,223 64.5 81.6 23.4 7.2 60.9 63.4 34.9 196.5
Heritage
3 138 22 10 31 2 14 123 60 26 18 1 92 67 6 99
Legatum
3 52 21 10 24 16 13 91 45 15 20 19 30 18 6 42
WEF
4 64 72 90 99 5
111
32 43 87
51 10
45
27 1
16
IMD
5 24 48 23 33 16 43 12 25 6 13 10 44 42 18 7
TI
8 75 =14 24 43 5 16 95 80 =14 32 12 69 25 10 73
IMD
15
23 27 2 22 4
18
35 30 9 7 1
40
29 6
46
WEF
20 26 9 5 24 2 10 56 39 6 13 11 43 18 12 53
IMF
Moodys
Aaa Aa3 Aa3 Aaa A1 Aaa Aaa Baa3 Baa1 Aaa Aa3 Aa1 A3 Aaa Aaa Baa2
GDP (US$bn, @ exchange rates, 2012F)
IMF
1,586 7,992 5,981 15,610 1,164 270 2,453 1,779 377 3,479 480 260 2,067 2,712 1,805 2,450
GDP Per Capita (US$, @ exchange rates, 2012F)
Austrade
2.6
10.9 0.2 0.9 3.8 6.3
0.6
8.4 3.0 1.6 4.2 4.2
-0.1
0.9 1.4
4.2
Austrade
3.4 8.6 1.5 2.9 3.9 3.8 2.3 7.5 5.3 1.2 4.6 4.0 0.3 1.5 2.3 3.9
IMF
IMF
Austrade
Austrade
Austrade
Australias Inward FDI Stock Level (A$bn, 2011 or latest data available)
ABS
Australias Outward FDI Stock Level (A$bn, 2011 or latest data available)
ABS
6.4 2.8 98.0 0.68 7.1 52.1 0.78 0.43 7.4 NP 3.9 0.22 0.49 23.3 12.9
Major Central Bank Interest Rates (%, 15 Jun 2012)
Bloomberg
3.50
6.56
0 to 0.1
0 to 0.25
3.25
0.17(a) 0.50 8.00 3.00 1.00 1.88 0.50 1.00 1.00 1.00 8.50
Consumer Price Index (% change on a year ago, latest data)
Bloomberg
1.6 3.0 0.4 1.7 2.5 5.4 3.0 7.6 2.5 1.8 1.7 4.7 3.2 2.0 2.0 5.0
Bloomberg
Exchange Rate(b) (unit of foreign currency per A$, 15 Jun 2012)
RBA
6.375 78.96 1.002 1,167 1.278 0.644 55.82 31.58 0.793 29.94 7.770 0.793 0.793 1.026 2.068
% Change From 15 Mar 2012
Austrade
-3.8 -10.3 -4.3 -1.1 -3.7 -3.6 6.3 -2.1 -1.3 -3.2 -4.4 -1.3 -1.3 -1.3 9.2
Austrade
Bloomberg
Bloomberg
-14.5 -21.7 -17.3 0.0 -11.0 -17.0 -5.6 -24.6 -0.7 -14.7 -21.2 -20.0 -25.2 -17.0 -11.1 -18.1
Office Overall Class A Core Rental Rates(c) (US$ sqf pa, Q1 2012)
C&W
82.6 100.0 102.4 72.1 36.9 94.9 163.8 91.5 25.9 50.5 43.9 116.6 66.8 99.0 50.5 80.6
Number of Internet Users (per 1,000 people, 2011)
IMD
843 324 846 841 828 854 820 133 329 799 754 845 764 774 849 352
OECD
BSA
8 38 16 1 19 3 5
34 50 15
13 19
23
21 7
39
Quality of Life Ranking (59 economies, 2012)
IMD
5 52 21 19 32 14 24 49 30 7 28 31 27 17 6 41
Highest Combined Corporate Tax Rate(d) (%, 2011)
KPMG
Effective Income Tax & Social Security Rate on US$100K of Income (2011)(e) KPMG
30.0 25.0 40.7 40.0 24.2 17.0 28.0 33.2 30.0 29.4 17.0 16.5 31.4 33.3 28.3 34.0
25.3 26.0 28.3 24.3 20.1 20.0 31.0 39.4 24.3 43.0 16.7 13.0 42.6 42.0 30.3 38.5
Abbreviations:
ABS = Australian Bureau Statistics,
cat. no. 5352, International
Investment Position, Australia:
Supplementary Statistics, Calendar
year 2011; Austrade = Australian
Trade Commission calculation;
BSA = Business Software Alliance;
Cushman = Cushman & Wakefield,
Across the Globe1Q12; CIA = Central
Intelligence Agency; The World
Factbook; DFAT = Department of
Foreign Affairs and Trade;
FDI = Foreign Direct Investment;
GDP = Gross Domestic Product;
Heritage = Heritage Foundation &
Wall Street Journal; IMD = Institute
for Management Development, World
Competitiveness Yearbook 2012;
IMF = International Monetary Fund,
World Economic Outlook (WEO) Apr
2012; KPMG = KPMGs Corporate
and Indirect Tax Rate Survey 2011,
KPMGs Individual Income Tax and
Social Security Rate Survey 2011;
Legatum = The 2011 Legatum
Prosperity Index Rankings;
Moodys = Moodys Investors Service;
NA = Not Available; NP = Not for
Publication; OECD = Oecd.Stat, Main
Science and Technology Indicators;
RBA = Reserve Bank of Australia;
TI = Transparency International;
WEF = World Economic Forum, The
Global Competitiveness Report
2011-12
Footnotes:
(a) These are the market rates that
most closely reflect the monetary
policy of Singapores central
bank. Singapore does not have a
target benchmark rate, instead
the countrys central bank targets
monetary aggregates. (b) Brazil Real
sourced from Bloomberg. (c) The
highest office rental rates in each
country. (d) The corporate tax rate
of each city includes taxes imposed
at the national level, state, or local
government level, as appropriate.
(e) Effective rates were derived by
taking total income tax and/or social
security over gross income prior any
deductions (which may include
social security).