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Millionaire Now! by Larry NusbaumThis blog is based on the organizational principles found in my new book, "Millionaire Now! - A Financial Toolbox with Seven Steps to Wealth". |
Australia
Posted on 03/29/2007 07:51 AM | Link | Post Comment
Four decades on, Australia is much changed by immigration, particularly from Asia, and economic reform. The result has been a decade and a half of uninterrupted economic growth with low inflation and low unemployment, and a restructuring of the economy with a relative lack of social disruption by the standards of industrialized economies.
Australia still benefits from the wealth on and under its land and seas. Natural resources and energy companies remain well represented on our list of Australia's 40 biggest companies. BHP Billiton and Rio Tinto, two mining giants, occupy second and fourth places in the list. (Click here.) The top ten is rounded out by banks, financial services firms, a telecoms group and food retailers. The full 40 spans multinationals in a range of industries, from Fosters, synonymous with beer but whose wine business is now its larger part, to Qantas Airways to Macquarie Bank, which has developed an investment banking niche in large-scale infrastructure and is the world's largest operator of private toll roads.
The growing prosperity of East Asia is Australia's latest slice of luck. China's industrial development has created a seemingly insatiable appetite for Australian minerals and fuels, while the rise of the region's consuming middle class has created new and growing markets for its agri- and foods businesses beyond Japan.
One out of two of Australia's export dollars are now earned in East Asia, and three out of four in the Asia-Pacific region as a whole, which is also the destination for more than half of Australia's foreign direct investment.
Developing economic relations with China, Japan and Indonesia in particular has become a policy priority for the government. Demand for Australian exports of raw materials, energy and food are likely to mean that the economy will grow this year by about half a percentage point more than last year's 2.5%.
A dark cloud on the horizon could be good for Australia -- providing it is a rain cloud. A couple of years of exceptionally dry weather have hit agricultural production, although exports have held up so far. Another year of drought, however, could bite into gross domestic product growth.
The greater risk to growth is inflation. The central bank raised rates in August for the second time this year to combat an inflation rate that had broken through its 3% target ceiling. A further rates rise from the current 6% before year's end is in the cards and could depress domestic demand.
A tight labor market is stoking the rise in prices. A shortage of skills is the growth constraint on the modern Australian economy....
ALSO READ:
Australia still benefits from the wealth on and under its land and seas. Natural resources and energy companies remain well represented on our list of Australia's 40 biggest companies. BHP Billiton and Rio Tinto, two mining giants, occupy second and fourth places in the list. (Click here.) The top ten is rounded out by banks, financial services firms, a telecoms group and food retailers. The full 40 spans multinationals in a range of industries, from Fosters, synonymous with beer but whose wine business is now its larger part, to Qantas Airways to Macquarie Bank, which has developed an investment banking niche in large-scale infrastructure and is the world's largest operator of private toll roads.
The growing prosperity of East Asia is Australia's latest slice of luck. China's industrial development has created a seemingly insatiable appetite for Australian minerals and fuels, while the rise of the region's consuming middle class has created new and growing markets for its agri- and foods businesses beyond Japan.
One out of two of Australia's export dollars are now earned in East Asia, and three out of four in the Asia-Pacific region as a whole, which is also the destination for more than half of Australia's foreign direct investment.
Developing economic relations with China, Japan and Indonesia in particular has become a policy priority for the government. Demand for Australian exports of raw materials, energy and food are likely to mean that the economy will grow this year by about half a percentage point more than last year's 2.5%.
A dark cloud on the horizon could be good for Australia -- providing it is a rain cloud. A couple of years of exceptionally dry weather have hit agricultural production, although exports have held up so far. Another year of drought, however, could bite into gross domestic product growth.
The greater risk to growth is inflation. The central bank raised rates in August for the second time this year to combat an inflation rate that had broken through its 3% target ceiling. A further rates rise from the current 6% before year's end is in the cards and could depress domestic demand.
A tight labor market is stoking the rise in prices. A shortage of skills is the growth constraint on the modern Australian economy....
ALSO READ:
EWA is another way to invest in Australia: EWA is an iShare called the MSCI Australia Index Fund. You can buy it through your American broker. An overview: "The iShares MSCI Australia Index Fund seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of publicly traded securities in the Australian market, as represented by the MSCI Australia Index."
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