AustraliaA Global FinancialServices CentreBenchmark Report 2010
AUSTRALIAA Global Financial Services CentreAustralia has emerged from the Global Financial Crisiswith its standing as a fin...
SECTION 1 Strong Economy Australia’s performance through the Global     World’s 20 Largest Economies                      ...
World’s 20 Largest Economies – 2010FPercentage share of total world nominal GDP in US$                 Rest of World 19.17...
Real GDP Growth by Country – 2002 to 2010F                         Average Growth Rate   Country                   1998 to...
Resilience of the Economy to Economic Cycles – 2006 to 2010The higher the score the better1 Rank Country          2006 Sco...
Unemployment Rates by Country – 2007 to 2010                                                                            Un...
Australia’s Real Gross Value Added by Industry – 20101  Manufacturing 9.1%                                                ...
Australia’s Real Gross Value Added – Growth by Industry – 1999 to 20101                              Construction         ...
Gross Fixed Capital Formation as a Percentage of GDP – 2008                 29.4                             29.3         ...
Inward Foreign Direct Investment Stocks by Country                                             1990        1995       2000...
Australia’s Exports of Goods and Services (US$ Billion)1Financial year ending 30 June                   240               ...
Australia’s Exports of Education Services                                                                                 ...
The Prosperity Index1 – World Ranking by Country – 2009                                       1.0                         ...
Net Government Debt (% of GDP) – 2010            140                                                                      ...
Percentage of Nonperforming Bank Loans to Total Bank Loans – 2004 to 2009                                               20...
SECTION 2Liquid MarketsAustralia’s financial markets are amongst   Financial Development Index 2009 Global Ranking by Count...
Financial Development Index 2009 Global Ranking by Country                                                           UK   ...
World’s 100 Largest Banks’ Credit Rating                                              3,000                               ...
ALPHA Fund   Background Australia   Global Benchmark Report 2010   Australian Trade Commission
ALPHA Fund   Background Australia   Global Benchmark Report 2010   Australian Trade Commission
ALPHA Fund   Background Australia   Global Benchmark Report 2010   Australian Trade Commission
ALPHA Fund   Background Australia   Global Benchmark Report 2010   Australian Trade Commission
ALPHA Fund   Background Australia   Global Benchmark Report 2010   Australian Trade Commission
ALPHA Fund   Background Australia   Global Benchmark Report 2010   Australian Trade Commission
ALPHA Fund   Background Australia   Global Benchmark Report 2010   Australian Trade Commission
ALPHA Fund   Background Australia   Global Benchmark Report 2010   Australian Trade Commission
ALPHA Fund   Background Australia   Global Benchmark Report 2010   Australian Trade Commission
ALPHA Fund   Background Australia   Global Benchmark Report 2010   Australian Trade Commission
ALPHA Fund   Background Australia   Global Benchmark Report 2010   Australian Trade Commission
ALPHA Fund   Background Australia   Global Benchmark Report 2010   Australian Trade Commission
ALPHA Fund   Background Australia   Global Benchmark Report 2010   Australian Trade Commission
ALPHA Fund   Background Australia   Global Benchmark Report 2010   Australian Trade Commission
ALPHA Fund   Background Australia   Global Benchmark Report 2010   Australian Trade Commission
ALPHA Fund   Background Australia   Global Benchmark Report 2010   Australian Trade Commission
ALPHA Fund   Background Australia   Global Benchmark Report 2010   Australian Trade Commission
ALPHA Fund   Background Australia   Global Benchmark Report 2010   Australian Trade Commission
ALPHA Fund   Background Australia   Global Benchmark Report 2010   Australian Trade Commission
ALPHA Fund   Background Australia   Global Benchmark Report 2010   Australian Trade Commission
ALPHA Fund   Background Australia   Global Benchmark Report 2010   Australian Trade Commission
ALPHA Fund   Background Australia   Global Benchmark Report 2010   Australian Trade Commission
ALPHA Fund   Background Australia   Global Benchmark Report 2010   Australian Trade Commission
ALPHA Fund   Background Australia   Global Benchmark Report 2010   Australian Trade Commission
ALPHA Fund   Background Australia   Global Benchmark Report 2010   Australian Trade Commission
ALPHA Fund   Background Australia   Global Benchmark Report 2010   Australian Trade Commission
ALPHA Fund   Background Australia   Global Benchmark Report 2010   Australian Trade Commission
ALPHA Fund   Background Australia   Global Benchmark Report 2010   Australian Trade Commission
ALPHA Fund   Background Australia   Global Benchmark Report 2010   Australian Trade Commission
ALPHA Fund   Background Australia   Global Benchmark Report 2010   Australian Trade Commission
ALPHA Fund   Background Australia   Global Benchmark Report 2010   Australian Trade Commission
ALPHA Fund   Background Australia   Global Benchmark Report 2010   Australian Trade Commission
ALPHA Fund   Background Australia   Global Benchmark Report 2010   Australian Trade Commission
ALPHA Fund   Background Australia   Global Benchmark Report 2010   Australian Trade Commission
ALPHA Fund   Background Australia   Global Benchmark Report 2010   Australian Trade Commission
ALPHA Fund   Background Australia   Global Benchmark Report 2010   Australian Trade Commission
ALPHA Fund   Background Australia   Global Benchmark Report 2010   Australian Trade Commission
ALPHA Fund   Background Australia   Global Benchmark Report 2010   Australian Trade Commission
ALPHA Fund   Background Australia   Global Benchmark Report 2010   Australian Trade Commission
ALPHA Fund   Background Australia   Global Benchmark Report 2010   Australian Trade Commission
ALPHA Fund   Background Australia   Global Benchmark Report 2010   Australian Trade Commission
ALPHA Fund   Background Australia   Global Benchmark Report 2010   Australian Trade Commission
ALPHA Fund   Background Australia   Global Benchmark Report 2010   Australian Trade Commission
ALPHA Fund   Background Australia   Global Benchmark Report 2010   Australian Trade Commission
ALPHA Fund   Background Australia   Global Benchmark Report 2010   Australian Trade Commission
ALPHA Fund   Background Australia   Global Benchmark Report 2010   Australian Trade Commission
ALPHA Fund   Background Australia   Global Benchmark Report 2010   Australian Trade Commission
ALPHA Fund   Background Australia   Global Benchmark Report 2010   Australian Trade Commission
ALPHA Fund   Background Australia   Global Benchmark Report 2010   Australian Trade Commission
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ALPHA Fund Background Australia Global Benchmark Report 2010 Australian Trade Commission

  1. 1. AustraliaA Global FinancialServices CentreBenchmark Report 2010
  2. 2. AUSTRALIAA Global Financial Services CentreAustralia has emerged from the Global Financial Crisiswith its standing as a financial centre in the regionenhanced.Australia weathered the worst of the global financial crisis. Australia’s financial sectorremains in robust good health, underpinned by a world best practice regulatory system.The World Economic Forum’s Financial Development Report 2009 has also rankedAustralia second out of 55 of the world’s leading financial systems and capital markets. ABN 11 764 698 227Australia is home to the world’s fourth largest pool of contestable funds under Date: September 2010management, which is also the largest in the region. The funds management sector has ISBN: 978-0-9807059-3-5grown five-fold since 1995, at a compound annual growth rate of 12 per cent, and nowhas A$ 1.7 trillion in funds under management. DISCLAIMER This report has been prepared as a general overview. It is not intended to provide an exhaustive coverageAustralia’s impressive record of sustained economic and employment growth is of the topic. The information is made available on theexpected to continue. The IMF forecasts Australian economic growth of 3.0 per cent in understanding that the Australian Trade Commission2010 and 3.5 per cent for 2011. This compares favourably with those of other advanced (Austrade) is not providing professional advice. Therefore, while all care has been taken in theeconomies. Australia’s unemployment rate is also relatively low at 5.3 per cent. preparation of this report, Austrade does not acceptThe 2010 IMD World Competitiveness Yearbook has rated Australia’s economy as the responsibility for any losses suffered by persons relyingsecond most resilient in the world. on the information contained in this report or arising from any error or omission in the report. Any person relying on this information does so entirely at theirThese core economic strengths, our robust institutional framework, the openness of own discretion and Austrade strongly recommends theour economy and the size, depth and sophistication of our markets will underpin the reader obtain independent professional advice prior to acting on this information.future growth of the financial services sector. Austrade’s role includes to facilitate engagement byThe Australian Government has continued to take important steps to support the Australian financial services exporters in markets outside Australia. Austrade is not a promoter of anyinternationalisation of the financial sector and to enhance Australia’s attractiveness financial services products or investments and doesas a global financial services centre. not provide investment advice. Austrade assumes no responsibility for any company, product or service mentioned in this document, for any materials provided in relation to such products, nor for any act or omission of any business connected with such products. Investors should always consider whether an investment is appropriate for their needs and seek out independent advice as appropriate.
  3. 3. SECTION 1 Strong Economy Australia’s performance through the Global World’s 20 Largest Economies 2 Financial Crisis confirms its standing as one Real GDP Growth by Country 3 of the world’s most resilient economies. Resilience of the Economy to Economic Cycles 4 Unemployment Rates by Country 5 Australia’s Real Gross Value Added by Industry 6 Australia’s Real Gross Value Added – Growth by Industry 7 Gross Fixed Capital Formation as a Percentage of GDP 8 Inward Foreign Direct Investment Stocks by Country 9 Australia’s Exports of Goods and Services 10 Australia’s Exports of Education Services 11 The Prosperity Index – World Ranking by Country 12 Net Government Debt 13 Percentage of Nonperforming Bank Loans to Total Bank Loans 14 StrongEconomy
  4. 4. World’s 20 Largest Economies – 2010FPercentage share of total world nominal GDP in US$ Rest of World 19.17% 14. Mexico 1.61% 15. South Korea 1.60% 16. Netherlands 1.29% 1. USA 23.96% 17. Turkey 1.15% 18. Indonesia 1.09% 19. Switzerland 0.87% 20. Belgium 0.78% 8.39% 13. Australia 1.93% 2. China 8.69% 12. India 2.21% 11. Spain 2.31% 3. Japan 8.54% 10. Russia 2.44% 9. Canada 2.52% 8. Brazil 3.09% 7. Italy 3.43% 4. Germany 5.40% 6. UK 3.60% 5. France 4.32%GDP of the world’s 183 economies: US$61,767 billionGDP of Asia Pacific Economic Cooperation’s 21 member economies: US$34,483 billion (55.83%)F = ForecastSources: International Monetary Fund, World Economic Outlook Database, April 2010; AustradeAlthough Australia’s population is less than half a per cent of the global total, its economy ranks the 13th largest in the world, rivalling countries such asIndia, South Korea and Netherlands. Australia’s GDP is now estimated at around US$1.2 trillion, the fourth largest economy in the Asia-Pacific region. Section 1. Strong Economy 2
  5. 5. Real GDP Growth by Country – 2002 to 2010F Average Growth Rate Country 1998 to 2010 2002 2003 2004 2005 2006 2007 2008 2009 2010F China 9.7 9.1 10.0 10.1 10.4 11.6 13.0 9.6 9.1 10.5 India 7.0 4.6 6.9 7.9 9.2 9.8 9.4 6.4 5.7 9.4 Vietnam 6.9 7.1 7.3 7.8 8.4 8.2 8.5 6.2 5.3 6.5 UAE 5.4 2.6 11.9 9.7 8.2 8.7 6.1 5.1 -0.7 1.3 Singapore 5.0 4.2 3.8 9.2 7.6 8.7 8.2 1.4 -1.3 9.9 Korea 4.2 7.2 2.8 4.6 4.0 5.2 5.1 2.3 0.2 5.7 Philippines 4.2 4.4 4.9 6.4 5.0 5.3 7.1 3.8 1.1 6.0 Malaysia 4.1 5.4 5.8 6.8 5.3 5.8 6.2 4.6 -1.7 6.7 Taiwan 4.0 5.3 3.7 6.2 4.7 5.4 6.0 0.7 -1.9 7.7 Indonesia 3.5 4.5 4.8 5.0 5.7 5.5 6.3 6.0 4.5 6.0 Hong Kong 3.4 1.8 3.0 8.5 7.1 7.0 6.4 2.1 -2.8 6.0 Australia 3.3 3.9 3.2 3.6 3.2 2.6 4.7 2.4 1.3 3.0 Thailand 3.2 5.3 7.1 6.3 4.6 5.1 4.9 2.5 -2.2 7.0 Brazil 3.1 2.7 1.1 5.7 3.2 4.0 6.1 5.1 -0.2 7.1 Greece 3.0 3.4 5.9 4.6 2.2 4.5 4.5 2.0 -2.0 -2.0 Spain 2.7 2.7 3.1 3.3 3.6 4.0 3.6 0.9 -3.6 -0.4 Canada 2.7 2.9 1.9 3.1 3.0 2.9 2.5 0.5 -2.5 3.6 New Zealand 2.5 4.9 4.2 4.4 3.2 1.0 2.8 -0.1 -1.6 3.0 USA 2.4 1.8 2.5 3.6 3.1 2.7 2.1 0.4 -2.4 3.3 UK 2.0 2.1 2.8 3.0 2.2 2.9 2.6 0.5 -4.9 1.2 Netherlands 2.0 0.1 0.3 2.2 2.0 3.4 3.6 2.0 -4.0 1.3 Switzerland 1.8 0.4 -0.2 2.5 2.6 3.6 3.6 1.8 -1.5 1.5 France 1.7 1.1 1.1 2.3 1.9 2.4 2.3 0.1 -2.5 1.4 Germany 1.0 0.0 -0.2 1.2 0.7 3.2 2.5 1.2 -4.9 1.4 Italy 0.7 0.5 0.0 1.5 0.7 2.0 1.5 -1.3 -5.0 0.9 Japan 0.6 0.3 1.4 2.7 1.9 2.0 2.4 -1.2 -5.2 2.4 World Average1 2.6 2.0 2.7 4.0 3.4 3.9 3.9 1.8 -2.0 3.6F = Forecast; UAE = United Arab Emirates1. Based on market exchange ratesSources: International Monetary Fund, World Economic Outlook (WEO) Database, April 2009; WEO Update July 2009; AustradeIn the July 2010 Update of the International Monetary Fund’s (IMF) World Economic Outlook, the IMF has forecast that the Australian economy willgrow by 3.0 per cent in 2010 and 3.5 per cent in 2011, giving it a brighter outlook than that of the advanced economies as a whole. A timely response tothe financial crisis, a healthy banking sector, rigorous regulatory environment, flexible exchange rate and sustained demand from China for Australiancommodities helped to avoid the worst of the financial turbulence that other economies experienced. Section 1. Strong Economy 3
  6. 6. Resilience of the Economy to Economic Cycles – 2006 to 2010The higher the score the better1 Rank Country 2006 Score Country 2007 Score Country 2008 Score Country 2009 Score Country 2010 Score 1 Australia 7.39 Denmark 7.45 Australia 6.78 Qatar 6.16 Israel 7.13 2 USA 7.22 USA 6.90 Denmark 6.73 Norway 5.96 Australia 7.04 3 Denmark 7.16 Israel 6.82 Switzerland 6.43 Australia 5.83 India 6.82 4 Hong Kong 7.09 Austria 6.67 Israel 6.14 Chile 5.83 Qatar 6.82 5 India 6.84 Malaysia 6.64 Austria 6.00 Denmark 5.79 Malaysia 6.63 6 Israel 6.80 Switzerland 6.43 Norway 5.96 India 5.78 Chile 6.29 7 Ireland 6.68 Australia 6.38 Chile 5.89 Brazil 5.54 Switzerland 6.27 8 Norway 6.68 India 6.33 India 5.87 Israel 5.53 Norway 6.11 9 Chile 6.41 Hong Kong 6.33 Brazil 5.83 Switzerland 5.38 Taiwan 6.07 10 Canada 6.38 Singapore 6.19 Finland 5.80 China 5.05 China 6.02 11 Switzerland 6.34 China 6.17 Singapore 5.78 Malaysia 5.04 Poland 5.80 12 Malaysia 6.34 Norway 6.08 Sweden 5.66 Finland 5.00 Singapore 5.78 13 Japan 6.32 UK 6.02 Netherlands 5.66 Austria 4.98 Sweden 5.75 14 Qatar 6.31 Chile 6.00 Malaysia 5.66 Singapore 4.96 Indonesia 5.64 15 Singapore 6.30 Taiwan 5.79 Hong Kong 5.61 Hong Kong 4.94 South Korea 5.55 16 Estonia 6.19 Japan 5.79 Taiwan 5.52 Taiwan 4.91 Canada 5.55 17 Finland 6.02 Ireland 5.76 Czech Republic 5.41 South Africa 4.84 Brazil 5.51 18 Iceland 6.00 Luxembourg 5.73 Canada 5.36 Netherlands 4.83 Philippines 5.50 19 China 5.90 Estonia 5.72 Germany 5.34 Germany 4.79 Austria 5.46 20 Thailand 5.82 Netherlands 5.66 Slovenia 5.29 Sweden 4.77 Hong Kong 5.40 21 UK 5.82 Slovenia 5.66 USA 5.29 Philippines 4.73 Thailand 5.33 22 South Africa 5.75 Sweden 5.61 Estonia 5.27 Slovenia 4.63 Denmark 5.22 23 Sweden 5.72 Czech Republic 5.60 Jordan 5.15 Lithuania 4.60 Netherlands 5.20 24 Jordan 5.67 Jordan 5.50 China 5.15 Jordan 4.60 Germany 5.14 25 Taiwan 5.65 Iceland 5.44 Ireland 5.02 New Zealand 4.49 Turkey 4.87Surveyed question: Resilience of the economy to economic cycles is strong.1. IMD World Competitiveness Yearbook Executive Opinion Survey based on an index from 0 to 10. The IMD included 58 economies in the 2010 survey.Sources: IMD World Competitiveness Online 1995-2010 (Updated: May 2010); AustradeThe Australian economy has recorded 19 years of uninterrupted growth to 2010, despite two global downturns. The strength of the Australian economyis well recognised. The 2010 Institute for Management Development (IMD) World Competitiveness Yearbook rated Australia’s economy the second mostresilient in the world. For countries with populations greater than 20 million, Australia ranked first in 2009 and 2010, and has topped this category in eightof the previous nine years. Section 1. Strong Economy 4
  7. 7. Unemployment Rates by Country – 2007 to 2010 Unemployment Rate – Percentage of Labour Force Annual Latest Rate1 Country 2007 2008 2009 2010 Spain 8.3 11.3 18.0 20.1 Ireland 4.6 6.1 11.8 13.7 Turkey 10.3 11.0 14.1 12.0 Greece 8.3 7.7 9.5 11.7 Portugal 8.0 7.6 9.5 10.6 France 8.0 7.4 9.1 9.5 Sweden 6.0 6.2 8.3 9.5 USA 4.6 5.8 9.3 9.5 Belgium 7.5 7.0 7.9 8.6 Chile 7.1 7.8 10.8 8.5 Italy 5.9 6.7 7.8 8.4 Canada 6.0 6.1 8.3 8.0 UK 5.4 5.7 7.6 7.8 Germany 8.7 7.5 7.7 7.6 Brazil 9.3 7.9 8.1 7.0 Russia 6.1 6.4 8.4 6.8 New Zealand 3.7 4.2 6.1 6.8 Netherlands 4.5 3.9 4.9 5.5 Australia 4.4 4.2 5.6 5.3 Japan 3.9 4.0 5.1 5.3 China 4.0 4.2 4.3 4.2 South Korea 3.3 3.2 3.7 3.7 Switzerland 3.5 3.4 4.2 3.6 Norway 2.5 2.6 3.2 3.01. Latest unemployment rate for each country – annual rates not yet available.Sources: 2007 to 2009 data extracted on 18 August 2010 from OECD.Stat, and 2010 latest figures sourced from Bloomberg; AustradeAustralia’s unemployment rate has eased to just over 5 per cent after peaking at 5.8 per cent in the middle of 2009. Australia’s latest unemployment rateis almost half that of the Euro area and the United States. Australia is also ranked second globally in terms of economic resilience which in part reflectsthe openness of the economy and sustained economic reforms over recent decades. Over the past year, employment in Australia rose by a strong300,000. Section 1. Strong Economy 5
  8. 8. Australia’s Real Gross Value Added by Industry – 20101 Manufacturing 9.1% Finance/Insurance 10.8% Generated $A121 billion Mining 7.3% Professional/Scientific/ Technical Services 6.5% Agriculture/Forestry/Fishing 2.8% Healthcare/Social Assistance 6.3% Construction 7.5% Public Administration/Safety 5.5% Utilities 2.6% Transport/Postal/Warehousing 5.4% Other Services2 15.7% Wholesale Trade 4.9% Retail Trade 4.9% Information Media/Telecommunications 3.0% Education/Training 4.4% Rental/Hiring/Real Estate Services 3.3% Service Industries 80.8%1. Annual total to March 2010.2. Including Accommodation/Food Services, Administrative/Support Services, and Arts/Recreation Services.Sources: Australian Bureau of Statistics, cat. no. 5206.0, National Income, Expenditure and Product, Time Series Workbook (released 2 June 2010), Table 6; AustradeThe financial sector is the largest contributor to Australia’s national output, directly generating 10.8 per cent or A$121 billion of real gross value addedin 2010. This contribution is up from 8.9 per cent or A$53 billion two decades ago. Australia’s financial sector continues to grow more rapidly than mostother sectors of the economy, benefiting from significant structural reforms and strong and resilient economic growth over the past two decades.The financial services industry is a major driver of Australia’s economic growth, contributing almost four times that of agriculture, forestry and fishing(A$32 billion), and nearly 50 per cent more than mining (A$82 billion). The increasing significance of finance and insurance over the past two decadeshas also aided growth in related sectors such as information, media and telecommunications, and other business services. Section 1. Strong Economy 6
  9. 9. Australia’s Real Gross Value Added – Growth by Industry – 1999 to 20101 Construction 5.3 Administrative/Support Services 5.2Professional/Scientific/Technical Services 5.1 Financial/Insurance Services 4.7 Healthcare/Social Assistance 4.4 Retail Trade 4.1 Arts/Recreation Services 4.1 Information Media/Telecommunications 3.8 Transport/Postal/Warehousing 3.6 Agriculture/Forestry/Fishing 3.5 Wholesale Trade 3.1 Mining 2.7 Accommodation/Food Services 2.6 Public Administration/Safety 2.6 All Industry Average Growth: 3.3% Per Annum Rental/Hiring/Real Estate Services 2.2 Utilities 1.9 Education/Training 1.9 Manufacturing 0.9 0 1 2 3 4 5 6 7 Average Annual % Change1. Annual total to March each year.Sources: Australian Bureau of Statistics, cat. no. 5206.0, National Income, Expenditure and Product, Time Series Workbook, Table 6 (released 2 June 2010); AustradeAustralia’s finance and insurance sector has been one of the country’s highest performing industries, achieving an average annual growth rate of4.7 per cent a year between 1999 and 2010. This is well above the combined average for all industries (3.3 per cent) and reflects the strength ofAustralia’s service-based economy. Section 1. Strong Economy 7
  10. 10. Gross Fixed Capital Formation as a Percentage of GDP – 2008 29.4 29.3 28.8 30 24.9 24.2 23.9 25 23.1 22.7 22.6 22.2 22.1 22.1 21.9 21.8 21.7 21.7 21.3 20.9 21.1 20.9 20.9 20.8 20.6 20.6 20.4 19.9 19.5 19.4 19.3 20 19.0 17.9 16.8% of GDP 15 10 5 0 Switzerland EU27 total Austria Spain OECD total Czech Republic Poland Australia Iceland Luxembourg Finland Belgium Ireland Portugal France Netherlands Japan New Zealand Turkey Sweden Germany Denmark Greece Mexico Norway South Korea Canada Italy UK Slovak Republic Hungary USA Sources: OECD Factbook 2010: Economic, Environmental and Social Statistics (released 26 May 2010); AustradeThe share of total GDP devoted to investment in fixed assets is an important determinant of future economic growth. Higher capital investment tends toincrease productivity and contribute to higher GDP growth. Australia’s fixed capital investment as a percentage of GDP was 29.4 per cent in 2008, thehighest of all OECD countries. This rate is also well above the average of EU27 (21.1 per cent) and OECD (20.6 per cent). Section 1. Strong Economy 8
  11. 11. Inward Foreign Direct Investment Stocks by Country 1990 1995 2000 2005 2006 2007 2008 2009 2009 Country Inward FDI Stock as a Percentage of GDP (%) (US$ Billion) Switzerland 14.4 18.1 34.7 45.7 67.8 88.3 87.8 94.2 464 Netherlands 23.1 27.7 63.3 70.7 76.1 93.6 73.2 75.3 597 UK 20.6 17.6 30.4 36.9 46.7 44.4 36.8 51.7 1,125 Spain 12.7 17.5 26.9 34.0 37.4 40.6 39.1 45.9 671 France 7.9 12.2 29.4 41.5 48.8 48.6 32.3 42.8 1,133 Canada 19.4 20.9 29.3 30.1 29.3 36.3 29.5 39.3 525 Malaysia 23.4 32.3 56.2 32.2 34.3 41.2 33.1 39.0 75 Thailand 9.7 10.5 24.4 34.2 37.2 38.1 34.2 37.5 99 Australia 23.2 28.0 29.8 32.8 37.8 40.5 29.5 33.5 328 Brazil 8.5 6.2 19.0 20.6 20.3 22.7 17.6 25.5 401 USA 9.3 13.7 28.5 22.8 25.1 26.1 17.9 21.9 3,121 Germany 6.5 6.6 14.3 17.1 20.3 20.9 18.2 21.0 702 Russia – 1.4 12.4 23.6 27.0 38.2 12.7 20.3 252 Italy 5.3 5.8 11.0 12.6 15.8 17.2 14.8 18.6 394 Philippines 10.2 13.7 24.2 15.2 14.4 14.2 12.9 14.6 24 Greece 6.2 8.5 11.2 12.0 15.6 17.2 10.9 13.6 45 Indonesia 6.9 9.3 15.2 14.4 15.0 18.5 13.3 13.5 73 South Korea 2.0 1.8 7.1 12.4 12.5 11.4 10.2 13.3 111 India 0.5 1.5 3.5 5.1 7.5 8.8 9.6 12.9 164 Taiwan 5.9 5.7 6.0 11.8 13.3 12.4 11.3 12.7 48 China 5.1 13.4 16.2 12.2 11.0 9.7 8.7 10.1 473 Japan 0.3 0.6 1.1 2.2 2.5 3.0 4.2 3.9 200 World 9.8 11.4 23.3 25.4 29.1 32.5 25.4 30.7 17,743 Developed Economies 9.0 10.8 23.0 25.5 29.9 33.3 26.3 31.5 12,353 Developing Economies 13.6 14.6 25.0 25.2 26.9 30.0 24.4 29.1 4,893Sources: United Nations Conference in Trade and Development Database (www.unctad.org/fdistatistics), Annex Tables 7 and 3; AustradeAustralia’s Foreign Direct Investment (FDI) stocks rose almost 350 per cent to US$328 billion between 1990 and 2009. This represents a compoundannual growth rate of 8.2 per cent since 1990. As a percentage of GDP, FDI in Australia rose from 23.2 per cent in 1990 to 33.5 per cent in 2009. Section 1. Strong Economy 9
  12. 12. Australia’s Exports of Goods and Services (US$ Billion)1Financial year ending 30 June 240 43 Merchandise Goods Commercial Services 49 45 Compound Annual Growth Rate since 1990: 7.8% 200 39 188 176 172 160 31 144 US$ Billion 30 120 114 24 26 20 98 80 19 19 19 18 18 16 77 15 75 14 68 11 11 11 60 60 59 61 9 54 57 40 47 48 39 40 41 41 0 1991 2001 1995 2007 2003 2005 1997 2004 2006 2009 1994 1999 2002 1993 1998 1992 2010 1990 2008 1996 20001. Australia’s exports in A$ were converted to US$ values, using US$/A$ exchange rate at the end of June each year from the Reserve Bank of Australia Statistics.Sources: Australian Bureau of Statistics, cat. no. 5368.0, International Trade in Goods and Services, Australia, Table 1 (released 4 August 2010); AustradeAustralia’s annual export value of goods and services in US dollar terms fell 5.9 per cent to US$21 billion in 2009-10. Nevertheless, Australia has 7experienced strong export growth for 16 of the last 20 years, and export value has increased by a compound annual growth rate of around 8 per cent.The overall growth in the country’s external sector can be attributed to ongoing economic reform, Australia’s strong competitiveness, continued tradeopenness, and diversified export markets. Section 1. Strong Economy 10
  13. 13. Australia’s Exports of Education Services Share of 2009 Change 2007 2008 2009 Total 2008 to 09 (A$ Million) % Education Related Travel Services1 12,177 15,002 17,986 96.8 19.9 1. China 2,738 3,432 4,102 22.1 19.5 2. India 1,618 2,413 3,187 17.2 32.1 3. South Korea 964 1,082 1,117 6.0 3.2 4. Malaysia 670 756 856 4.6 13.2 5. Thailand 498 605 719 3.9 18.8 6. Vietnam 286 467 713 3.8 52.7 7. Nepal 173 380 614 3.3 61.6 8. Indonesia 487 525 576 3.1 9.7 9. Hong Kong 571 558 560 3.0 0.4 10. Brazil 268 365 425 2.3 16.4 Other countries 3,904 4,419 5,117 27.5 15.8 Other Educational Services2 383 495 556 3.0 12.3 Education Consultancy Services 132 124 115 0.6 -7.3 Correspondence Courses 22 25 24 0.1 -4.0 Services through Educational Institutions 104 203 250 1.3 23.2 Other Education Services 125 143 167 0.9 16.8 Royalties on Education Services 7 18 33 0.2 83.3 Total Education Related Services Exports 12,189 15,115 18,575 100.0 22.91. Includes international students on student visas only.2. Export income does not include income generated by the operations of offshore campuses of Australian institutions.Sources: Australian Education International, Research Snapshot, June 2009; AustradeInternational education activity contributed A$18.6 billion in export income to the Australian economy in 2009, up 22.9 per cent from 2008. Educationservices remain Australia’s fourth largest export, behind coal (A$39.4 billion), iron ore and concentrates (A$30.0 billion), and tourism (A$23.5 billion in2008-09). Of the total export income generated by education services, A$18 billion was from spending on fees and goods and services onshore byforeign students, with a further A$556 million from education consultancy and other services. Section 1. Strong Economy 11
  14. 14. The Prosperity Index1 – World Ranking by Country – 2009 1.0 0.922 0.920 0.919 0.908 0.917 0.895 0.893 0.892 0.880 0.885 0.875 0.854 0.9 0.828 0.805 0.793 0.767 0.764 0.8 0.729 0.720 0.723 0.697Scores (1 = the best, 0 = the worst) 0.7 0.581 0.569 0.546 0.6 0.547 0.537 0.501 0.473 0.5 0.422 0.420 0.4 0.3 0.2 0.1 0.0 Australia (6) Finland (1) Spain (19) Norway (5) Singapore (23) Philippines (55) Sweden (3) USA (9) China (75) Hong Kong (18) UAE (47) Switzerland (2) Netherlands (8) New Zealand (10) India (45) Ireland (11) Denmark (4) Japan (16) 7) Taiwan (24) South Korea (26) Indonesia (61) UK (12) Vietnam (77) Germany (14) Thailand (44) Italy (21) Canada (7) Malaysia (39) Brazil (41) France (11. The Prosperity Index ranks 104 nations according to nine building blocks of prosperity. A country’s position in the overall Prosperity Index is produced by equally weighting and averaging its nine sub-index scores. The scores are then ranked to produce the overall ranking. The Index measures prosperity across nine areas that have an established empirical relationship with either national wealth or wellbeing: economic fundamentals, entrepreneurship and innovation, democratic institutions, education, health, safety and security, governance, personal freedom, and social capital.Sources: The 2009 Legatum Prosperity Index Report; AustradeAustralia has been ranked sixth in the world and first in the Asia-Pacific region in the Legatum Institute’s 2009 Prosperity Index of more than 100countries. Countries were rated on the following: democratic institutions, economic fundamentals, education, entrepreneurship and innovation,governance, health, personal freedom, safety and security, and social capital. Australia achieved the following top ten rankings: personal freedom (4th),social capital (4th), democratic institutions (5th), education (6th), economic fundamentals (7th), and governance (10th). Section 1. Strong Economy 12
  15. 15. Net Government Debt (% of GDP) – 2010 140 121.6 116.0 120 100 91.1 82.2 77.2 80 74.5 71.6 % of GDP 68.6 66.2 60.5 57.5 60 47.8 46.0 40 39.2 32.2 20 5.4 3.3 3.1 0 Portugal2 Australia1 Spain2 France Netherlands Ireland Iceland Austria New Zealand Switzerland Canada Belgium Denmark USA Germany UK Japan Italy1. Does not reflect the latest federal government budget released 11 May 2010.2. Does not reflect additional deficit reduction plans announced 10 May 2010.Sources: IMF World Economic and Financial Surveys, Fiscal Monitor 14 May 2010, Table 3; AustradeAustralia’s net debt is estimated to be around 5 per cent of GDP, according to the IMF 2010 World Economic and Financial Surveys. The ratio is wellbelow the average of 69.9 per cent of GDP for advanced economies. The relatively low level of public sector debt reinforces Australia’s strong financialposition and sound economic credentials. Section 1. Strong Economy 13
  16. 16. Percentage of Nonperforming Bank Loans to Total Bank Loans – 2004 to 2009 2004 2005 2006 2007 2008 2009 Latest Average Thailand 11.9 9.1 8.4 7.9 5.7 NA Dec 8.6 Philippines1 14.4 10.0 7.5 5.8 4.5 4.6 Sep 7.8 Malaysia 11.7 9.6 8.5 6.5 4.8 3.8 Nov 7.5 China2 13.2 8.6 7.1 6.2 2.4 1.6 Dec 6.5 UAE3 12.5 8.3 6.3 2.9 2.5 4.6 Nov 6.2 Greece 7.0 6.3 5.4 4.5 5.0 7.2 Sep 5.9 Italy4 6.6 5.3 4.9 4.6 4.9 6.2 Jun 5.4 Indonesia5 4.5 7.6 6.1 4.1 3.2 3.8 Sep 4.9 India6 7.2 5.2 3.3 2.5 2.4 2.4 Mar 3.8 Germany 4.9 4.0 3.4 2.6 2.8 NA Dec 3.5 Brazil 2.9 3.5 3.5 3.0 3.1 4.5 Oct 3.4 France7 4.2 3.5 3.0 2.7 2.8 NA Dec 3.2 Singapore 5.0 3.8 2.8 1.5 1.7 2.3 Sep 2.9 Ireland8 0.8 0.7 0.7 0.8 2.6 7.5 Sep 2.2 USA9 0.8 0.7 0.8 1.4 2.9 5.4 Dec 2.0 Spain10 0.8 0.8 0.7 0.9 3.4 5.1 Dec 2.0 Japan11 2.9 1.8 1.5 1.4 1.6 1.8 Sep 1.8 Portugal12 2.0 1.5 1.3 1.5 1.9 2.8 Jun 1.8 UK 1.9 1.0 0.9 0.9 1.6 3.3 Jun 1.6 Hong Kong13 2.3 1.4 1.1 0.8 1.2 1.5 Sep 1.4 South Korea13 1.9 1.2 0.8 0.7 1.1 1.5 Sep 1.2 Netherlands 1.5 1.2 0.8 NA NA NA Dec 1.2 Canada 0.7 0.5 0.4 0.7 1.1 1.2 Sep 0.8 Switzerland 0.9 0.5 0.3 0.3 0.5 NA Dec 0.5 Australia14 0.2 0.2 0.2 0.2 0.8 1.1 Sep 0.5Note: Due to differences in national accounting, taxation, and supervisory regimes, the data is not strictly comparable across countries.1. The data excludes interbank loans. 2. Break in 2005; data started to cover all commercial banks. Previous years data covered “major commercial banks” (comprisingstate-owned commercial banks and joint stock commercial banks). 3. Data for national banks only. 4. Exposure to borrowers in a state of insolvency (even when not recog-nized in the court of law) plus exposure to borrowers in a temporary situation of difficulty. 5. Commercial banks. 6. Unless otherwise indicated, data refers to the end of thefiscal year, i.e., March of the indicated calendar year. 7. Gross doubtful debts. Break in series in 2006. 8. Covers all licensed banks (49 as of Q3 2009). 9. All FDIC-insuredinstitutions. 10. Doubtful exposures to other resident sectors over total lending to other resident sectors. 11. Unless otherwise indicated, data refers to the end of the fiscalyear, i.e., March of the next calendar year; for major banks. 12. For 2005-06 the figures are for the sample of institutions that are already complying with IFRS, accounting asof December 2004 for about 87 per cent of the usual aggregate considered. From 2007 onward, the sample of banking institutions under analysis was expanded to includethe institutions that adopted IFRS in 2006; On a consolidated basis. Nonperforming loans are defined as credit to customers overdue. Data for 2008 is preliminary. 13. Loansclassified as substandard, doubtful, and loss. 14. Impaired assets to total assets. Figures exclude loans in arrears that are covered by collateral.Sources: International Monetary Fund, Global Financial Stability Report, April 2010, Statistical Appendix, Table 24; Austrade.Australian banks have one of the lowest non-performing loans ratios of all 97 surveyed economies. Only 1.1 per cent of Australian bank loans are ‘non-performing’. This ratio reflects Australia’s strong financial system, sound regulatory framework and the resilience of the economy. Section 1. Strong Economy 14
  17. 17. SECTION 2Liquid MarketsAustralia’s financial markets are amongst Financial Development Index 2009 Global Ranking by Country 16 World’s 100 Largest Banks’ Credit Rating 17the largest, fastest growing and most Australia’s Financial Services Industry: Global Footprint 18sophisticated in Asia. Assets of Australia’s Financial Institutions 19 Global Significance of Australia’s Investment Fund Assets Pool 20 Australia’s Managed Funds Assets 21 Australian Investment Managers Asset Allocation 22 Global Pension Assets 23 World’s 25 Largest Sovereign Wealth Funds by 24 Assets Under Management Size of Key Stock Markets in the Asia-Pacific Region 25 International and Domestic Debt Securities 26 Real Estate Investment Trust Market Capitalisation 27 Asia-Pacific Hedge Fund Assets Under Management 28 Australian Residential Mortgage-Backed Security Issuance 29 World Insurance Markets 30 High Net Worth Individuals by Country 31 Worldwide Announced Mergers and Acquisitions by Target Nation 32 Liquid Markets
  18. 18. Financial Development Index 2009 Global Ranking by Country UK Australia USA Singapore Hong Kong Japan China India Overall Index (out of 55) 1 2 3 4 5 9 26 38 Financial Access 16 1 12 9 13 37 30 48 Non-Banking Financial Services 1 3 2 11 9 6 12 17 Banking Financial Services 2 5 20 11 1 3 10 39 Financial Markets 2 6 1 3 9 5 26 22 Financial Stability 37 9 38 5 3 34 23 46 Business Environment 12 11 10 2 9 15 40 48 Institutional Environment 15 14 11 1 10 17 35 48Sources: World Economic Forum, The Financial Development Report 2009 (released 8 October 2009); AustradeThe World Economic Forum’s The Financial Development Report 2009 has ranked Australia second of 55 of the world’s leading financial systems andcapital markets, ahead of the United States, Singapore and Hong Kong. Australia leads the Asia-Pacific region as a result of its solid performance inboth banking (5th in the world) and non-banking financial services (3rd in the world). The report stressed that the efficiency of Australia’s banks (a keycomponent of banking financial services) is a key strength. Section 2. Liquid Markets 16
  19. 19. World’s 100 Largest Banks’ Credit Rating 3,000 Australia’s four major banksAssets US$ Billion (as of 31 December 2009) 2,500 2,000 1,500 1,000 500 0 AAA AA AA- A+ A A- BBB+ BBB BBB- NR Sources: The chart was sourced from the Reserve Bank of Australia Financial Stability Report March 2009, page 25, Graph 38, and updated with the 2009 data of banks assets from The Banker 1000 World Banks 2010 and Standard and Poor’s Credit Ratings (downloaded 27 July 2010) from Bloomberg; Austrade Among the world’s 100 largest banks by assets, nine banks are rated AA or above – and four of these are Australian. Australian banks dealt with the Global Financial Crisis better than banks in many other countries. This can be attributed to Australia’s high prudential standards, and Australian banks focus on mainstream domestic activity and limited exposure to exotic derivatives. Section 2. Liquid Markets 17

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