Australia's Economy

The primary sector is the basics of the economy. It is gathering the raw materials of the earth, such as natural gas, meat, mineral ores or cereal grains. It includes jobs such as mining or farming. 5% of Australia’s population work in the Primary Sector.

The secondary sector of the economy is the manufacturing stage of product making. The secondary sector includes manufacturing, processing and constructing. Possible activities can be metal working, utilities, shipbuilding, breweries and bottlers. 19% of Australia’s population work in the Secondary Sector.

The tertiary sector of the economy is the service part of production. This sector is about getting the product to the general public and business. This can include transportation, entertainment, restaurants, media, tourism, banking, healthcare and law. The “Quaternary Sector” can also fit into tertiary. This includes mainly “intellectual” activities such as government, culture, scientific research and education. 76% of Australia’s population work in the tertiary sector.

Although over three quarters of Australia’s population work in the tertiary sector, 79% of our imports and exports are in the Primary and Secondary Sectors. This probably because when you are deciding what to do when you get older you chose a job like doctor, teacher or a lawyer, not many children would wish to be a farmer or a miner. Because of the way the world works, “intellectual” jobs are more appealing.

Currently we are very close to trading partners to the United States of America and the United Kingdom, and have very similar countries. However, the U.S.A. and U.K. are becoming more separated from Australia, and countries including China and Japan are becoming closer. Because societies in our world are built around money and the economy, the Australian government would want to strengthen our relationships with China and Japan to improve our country’s economy. I am sure that if our countries became close friends we would start to adopt some of their ways, like their technology, food and governing systems.

The ‘Commodities Boom’ is an increase in prices resulting from a rise in demand. The ‘Commodities Boom’ continues to affect greatly on Australia’s economy. Through our resources - coal, gold, natural gas, crude petroleum, iron ore and concentrates - we have become significant trading partners with China, and are becoming closer with other Asian economies. This has kept Australia rich, keeping Australia’s economy healthy and allowing other Asian trading partners to continue growing.

The Australian economy relies on people to consume goods and services, for example housing, food, clothing and power. The more we consume the stronger the economy. However, this is unsustainable because although our consumption is currently keeping the economy healthy, in the long run this love-affair with stuff will harm the lifestyles we choose to lead. Eventually our resources will run out.

This week, I was surprised by everything we learnt. I knew nothing about our economy and products we produce. But what surprised me most were the pie graphs about Australia’s imports and exports. Our trading partners have changed so much since1901 and I am gobsmacked at how the United Kingdom has lost its place as our biggest trading partner.

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