Australian are the richest people in the world?

Compared to other countries, Australia is considered one of the countries with the highest wealth and economic stability in the world. Today, many people around the world choose to work or study in this country because of its higher quality of life than other countries. This makes it attractive for people of many nationalities and foreign investors to play various roles within the country. These things have caused Australia to develop rapidly in various fields. In the future, it may be the center of the world’s economy.

Australia or its official name is the Commonwealth of Australia. It is a country consisting of the mainland of Australia, the island of Tasmania, and other islands in the Indian, Pacific, and Southern Oceans. Australia is the sixth largest country in the world with a population of approximately 26 million. Its land area is 7,617,930 square kilometers (2,941,300 sq mi). It is highly urbanized with a dense population on its eastern coast. The country’s capital is Canberra while the largest city is Sydney. It is the most populous city and is also the economic center of the country. The next most populous cities are Melbourne, Brisbane, Perth and Adelaide. Australia’s economy is considered to be the largest capitalist economy in the world. There are the most important business groups: Service Business and Tourism Business Group, Mining Industry Group, and Financial Business Group. The service business group is considered to have the highest proportion at 68 percent of the country’s GDP. Most of them focus on skills in IT, technology, and related work, such as computer system design, and engineering. Most of which conduct business in Canberra. As for business, the tourism industry generates more than A$35 billion in revenue for the national economy each year. Because Australia has popular tourist destinations such as The coastal cities of Sydney and Melbourne. Despite the challenges of the global economy and natural disasters, Australia’s tourism sector has also been supported by increased consumption. Australia has another important business: mining, which exists in every state of the country. The main mineral export of Australia is “coal” found in the states of New South Wales and Queensland, especially the Sydney, Newcastle and Wollongong fields. It is Australia’s largest coal deposit. Most of the coal is exported to East Asia and the world market, making Australia the world’s leading coal exporting country. It also includes other industrial minerals. The main countries that Australia exports to are China, South Korea, India, Japan, and the United States. Especially China, over the past 20 years, China’s economy has grown greatly. As a result, the demand for resources is also high. The total exports from Australia to China, the proportion of mineral exports is between 40-80%, which is not a small amount. There is also a financial business group which is Australia’s largest banks, known as the “Big Four”, which control the country’s financial operations and have some of the highest market capitalizations in the world. During the Tom Yum Kung crisis, Australia’s main trading partners are struggling, including Thailand, South Korea, and Indonesia. As a result, the Australian currency will weaken as well. Instead, the government raised interest rates to increase investor confidence, the government sees this as an opportunity to enter the export market to Europe and the United States. From more exports, Australia eventually emerged from that crisis. Beyond the mines, a business that grew quickly and received a lot of attention is a technology business. Australia is growing in tech, with 70.3% of its GDP. Thus, Australia has become a hotbed for new technology development to facilitate services like finance, agriculture, medicine, and education, according to the 2019 survey report, more than 700 Fintech-related companies have launched, and 7 companies are among the top 100 in the world. And there are also companies in other areas of technology. Hundreds more companies launched in the past year. Another interesting thing is Education. Currently, Australia has become one of the countries where people are most interested in studying and is the country with the 3rd highest number of universities in the world’s top 100. However, Global problems have caused Australia to face an economic recession. This means that the GDP growth rate has been negative for two consecutive quarters. And this is the first time in 29 years that economists have predicted that in the 1st quarter, Australia’s GDP will be negative 0.4%, In the 2nd quarter, Australia’s GDP will be negative 0.3%. Now the Chinese economy is suffering from the trade war that started at the end of 2018 until now and the outbreak of COVID-19 is about to cause the Chinese economy to grow to its lowest level in 30 years, causing concern that a slowing Chinese economy will have an impact on Australian exports. The impact of Covid-19 has also affected Australia’s tourism industry. In 2019, the tourism industry generated over $1.4 trillion baht in revenue for Australia. In 2019, there were more than 8.6 million tourists visiting Australia. The largest group of tourists was Chinese tourists, there were over 1.3 million people. In 2010, Chinese tourists traveling to Australia spent a total of more than 102 billion baht. In 2020, the Australian government estimates that this figure will increase to 290 billion baht. The Reserve Bank of Australia recently issued an estimate the impact of COVID-19 and bushfires in early 2020 will cost 0.7% of Australia’s GDP. But when compared with the GDP of other countries at the same time, Australia is considered to be the least affected country and has a high chance of recovering quickly. The Gross Domestic Product per capita in Australia was last recorded at 60797.96 US dollars in 2022. The GDP per Capita in Australia is equivalent to 481 percent of the world’s average. GDP per Capita in Australia averaged 39200.88 USD from 1960 until 2022, reaching an all-time high of 60797.96 USD in 2022 and a record low of 19810.52 USD in 1962.

          In conclusion, The Australian economy is likely to continue expanding. In the fiscal year 2021 – 2022, the Australian economy grew by 4.4 percent. The Australian government forecasts that in the fiscal year 2022 – 2023, the economy will expand by 10.75 percent, but will shrink by 0.5 percent in the fiscal year 2023 – 2024 and will grow continuously until 100 percent. 5.25 each in fiscal year 2024 – 2025 from the above forecast. The Australian government has therefore allocated a budget of 49,869 million Australian dollars to revive and stimulate the economy from the COVID-19 epidemic situation. In my respective, in the next 10-20 years, Australia may become a powerful country that rivals China or the United States.

This article is a part of the class 
“751309 Macro Economic 2”
supervised by Asst. Prof. Napon Hongsakulvasu
Faculty of Economics, Chiang Mai University

This article was written by 
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