The two dominant
elements of Australian economy are mining and agriculture. Both are equally productive and
lucrative, thanks to an abundance of raw material, natural resources and multitudes of
sheep that make Australia the world's largest supplier of wool. Tourism is also a major
source of national income. The manufacturing sector has long been the Australian economy's
weak link and successive governments have protected/subsidised the industry even during
economic slumps. As a result, most Australians find employment in the manufacturing
sector. Agriculture accounts for 4% of production, mining approximately 8% and
manufacturing about 16%. The Australian economy is growing at the rate of 4% per year and
inflation is low at under 2%.
Some of Australia's primary exports are wool, wheat, barley, sugar, coal,
bauxite, tungsten, silver, iron ore etc. More than half of Australia's exports go to South
East Asia. Japan is Australia's biggest trading partner but China, Korea and Vietnam are
becoming increasingly important. In an effort to increase its economic ties with South
East Asia, Australia initiated the Asia-Pacific Economic Cooperation group or APEC.
