In 2005, Australia’s per capita GDP (at PPP) of US$30,900 placed it 14th in the world, slightly above that of Japan, Germany, the United Kingdom and France.

Australia’s terms of trade have improved significantly since the late 1980s, and as of mid-2006 were more favourable than at any time since the global commodities boom of the mid-1970s.

The rapid economic growth and industrialisation of China and, to a lesser extent, other emerging economies, has increased the prices of many of Australia’s mineral and energy commodity exports. From their low in mid-1999, the average US$ price of Australia’s commodity exports has risen by 135 per cent.

These developments have boosted Australia’s share market. The Australian Stock Exchange or ASX is now the eighth largest in the world, and the third largest in the Asia-Pacific region while the Sydney Futures Exchange is the largest futures exchange in the region.

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