Economy

Australia is an industrialized country today，although for a long time the country’s economy was largely dependent on agriculture and livestock ranching.Even today，farming and grazing still plays a large role in Australian life.Australia is the world’s largest wool producer and supplies 50％ of Merino wool globally.In the past，up to 90％ of Australian wool was exported，although the percentage has dropped recently due to falling international demand for natural fibers and a corresponding decrease in wool prices.Australia is also a major supplier of cereals，sugar，dairy products，meat，and fruit.Wheat is grown throughout the country together with other grains such as barley and oats.The coastal areas of Queensland and in northern New South Wales are the main center of sugar cultivation.Important fruit crops include citrus，grapes，apples，and bananas.Other agricultural products include potatoes，sorghum，tobacco and cotton.

Australia has rich reserves of all kinds of mineral resources.Beginning in the 1960s，rich deposits of minerals such as coal，oil，natural gas，iron，lead，zinc，copper，bauxite，uranium，tin，gold，silver and nickel have been discovered across the country，making Australia into a major force in the global mining industry.

Australia was relatively late to industrialize，with the process only taking off in earnest after World WarⅡ.The rapid post⁃war development of industries like oil refining，chemicals，textiles and domestic appliances，as well as service industries，finally transformed Australia from a predominantly agricultural and pastoral country into an industrial giant.

Another important contributor to Australia’s economy is its rich forest and fishery resources.The country is estimated to have 60 million acres of commercially viable forest as well as large regions of low grade forest.Most of the commercial forest areas are located in high rainfall areas or near the coastal highlands of southeastern and eastern Australia，Tasmania and the southwest coast of Western Australia.The main type of tree in Australian forests is the broad⁃leaved eucalyptus，which provides timber of great strength and durability for building and packaging.

Being surrounded on all sides by oceans，Australia has extensive fishery resources.There are believed to be about 2，000 species of fish in Australian waters，including mullet，cod，abalone，bream，tuna，mackerel and salmon.

Australia’s resource abundance has enabled it to develop an economy that is largely export⁃oriented.Since the 1970s，for instance，Australia has been the major supplier of raw materials to leading industrial countries that are resource⁃deficient such as Japan.As a result，foreign trade is crucial to the nation’s economy，making up around 20％ of total GDP.Among exported goods，minerals contribute about a quarter of total income，while wool，meat，wheat and manufactured goods account for most of the rest.

Australia’s biological resources are unique，as its geographical isolation from the rest of the world has given it species of animals and plants that are not found elsewhere，such as kangaroos and platypuses.Australia was listed by UNESCO（the UN Educational，Scientific and Cultural Organization）in 1994 as one of the twelve countries that have the greatest biodiversity，and was the only developed country to be included on the list.

Manufacturing industry is another important sector of the Australian economy，and employs about one quarter of the country’s workforce.The main industrial sectors include engineering，chemicals and construction materials.

The most important sector of the economy is the service sector which account for 68％ of GDP.In the financial sector，Australia has a well⁃developed banking system that is similar to that of Great Britain.The core of the Australian financial system is the“big four”which refers to four important banks：Commonwealth Bank（CBA），Westpac，the Australia and New Zealand Banking Group，or ANZ，and National Australia Bank.

Generally speaking，the Australian economy is based on private enterprise.There is only very limited public ownership of corporate institutions;these include the post office，airlines，the central bank，and power companies in various states.The government plays an important role in guiding the economy，including through using fiscal and monetary policies to influence the level of economic activity.The Reserve Bank and the Treasury Department of the federal government provide the information on which the government makes economic decisions.