In recent years, Australia's economic performance is particularly outstanding among countries in the world-more competitive, more flexible and more dynamic than ever before. Although it can't compare with the United States and Japan, Australia's economic strength is stronger than Sweden, Belgium and Switzerland. The Australian economy has achieved high growth, low inflation and low interest rates; The government is effective, the labor market is flexible and enterprises are competitive.

High growth and low inflation

The economic growth rate of Australia 1998-99 was 4.4%, second only to the previous year's record of 4.8%. It is predicted that the economic growth will slow down to 3.5% in the coming year, reflecting that domestic demand in Australia is more stable, but it is still higher than the expected average level of the Organization for Economic Cooperation and Development. Strong growth momentum is accompanied by low inflation; The average inflation rate in Australia in the 1990s was 2. 1%, while that in the EU was 3. 1% and that in the US was 2.9%.

Low inflation brings low interest rates. Since the middle of 1996, the official interest rate in Australia has dropped to a level that has never been seen since the 1960s, when the inflation rate in Australia was extremely low. This impressive economic performance is based on a significant increase in productivity; Today, Australia's productivity is higher than that of the United States. In the 1990s, the multi-factor productivity (such as the productivity of combining labor and capital assets) grew at an average annual rate of 1.8%.

In the two years of 1997-98 and 1998-99, Australia achieved a basic budget surplus. It is predicted that Australia will achieve this goal in 1999-2000. Reasons for Australia's strong economic performance

Australia has a comprehensive economic policy outline.

In order to ensure the global competitiveness of the economy and its attractiveness to foreign investment, Australia has implemented active policy reforms.

Australia's sound, stable and competitive system provides a guarantee for business decision-making and is conducive to sustainable economic development. Australia has:

1. Good budget reality-surplus;

2. World-class financial supervision system;

3. Improve the commercial company law and bankruptcy system;

4. Major industries with substantial competition, such as telecommunications, electric power, gas and other industries;

5. A highly open economy with the least restrictions on trade and investment;

6. Reform the labor market and tax system;

From 1996, an important part of Australia's institutional reform is to reform the rules and regulations of the labor market and the help provided by the government to the labor market; Among them, a major reform of workplace relations will change the decision of the arbitration court on wages into direct negotiations between employers and employees to ensure that wages and employment conditions are in line with the actual situation of each workplace.

In the past decade, Australia's working conditions have been significantly improved, which led to a significant increase in productivity in the 1990s. In the past, the complicated labor relations system, which was mainly ruled by arbitration courts, has now given way to a more democratic way. In many cases, workplace agreements can be reached between employers and employees.

Due to the above changes, the labor market is more sensitive to economic changes, reducing the obstacles that may be encountered in the process of creating new employment opportunities and improving productivity; From 1998 to 1999, the employment rate increased by 2.9%. In the same period, the unemployment rate fell below 7%, the first time since 1990; It is precisely because of the reform of the labor market, fixed wages and employment conditions that the recent strong economic growth has not brought about the wage increase caused by inflation.

In the past 15 years, Australia's export bases have become more and more diversified. On the one hand, new international business opportunities have emerged. On the other hand, due to low tariffs and microeconomic reforms, Australian businesses have become more competitive. At present, the export of manufactured goods (A $28 billion) and services (A $25 billion) has exceeded the export of mineral products and agricultural products (A $25 billion and A $23 billion respectively).

Tax system reform in Australia

The Australian government is reforming the tax system, expanding the sources of indirect taxes, simplifying procedures, reducing wrong practices and improving fairness. From July 1 day, 2000, Australia will levy Goods and Services Tax (GST), and at the same time carry out many reforms on business tax.

Goods and services tax is a widely applicable value-added tax, which will replace inefficient indirect taxes, including wholesale taxes borne by exporters and manufacturers. Goods and services tax (10%) is applicable to almost all goods and services, but stock trading will not be subject to stamp duty.

This reform will reduce business costs by A $7 billion to A $8 billion annually and export costs by more than A $3.5 billion. All measures have been legislated. Business tax reform includes reducing the corporate tax rate. In the tax year of 2000-0/kloc-0, the enterprise income tax was reduced from 36% to 34% and then to 30%.

Australia and the world financial community

Because of its impressive economic record at home and abroad, Australia has begun to play an important role in the world financial community. Australia is:

Member of the Financial Stability Forum, which is composed of the Group of Seven plus four other countries;

One of the newly established members of the G20, playing an important role in the international financial system;

The Australian Stock Exchange is the second largest stock and options exchange in the Asia-Pacific region after Tokyo. Sydney Futures Exchange remains the most advanced exchange in the region.

Australia is increasingly becoming a regional financial center with:

1. Standardized and perfect financial system;

2. There is a deep, liquid and transparent market-it can supply all kinds of complex and advanced products, such as stocks, bonds and managed funds;

3. World-class communication system;

4. Multilingual and highly skilled workforce;

5. World-class financial management system.

Future Australian economy

"The next decade may be of special significance to Australia-our economy, employment, infrastructure, services and living standards will be further improved, in the region, in many aspects and even in the world." Australian Finance Minister peter costello

In 2000 and beyond, with the improvement of the world economy and the benefits of government tax reform, Australia's economy will continue to grow strongly.

Thanks to extensive reform and remarkable productivity improvement, Australia can maintain its inflation-free economic growth and keep the growth rate at or above the average level of developed countries. Australia's goal is to achieve economic growth as much as possible without bringing inflationary pressure; The current account deficit has always been the focus of foreign investors. Australia's average current account deficit in the past 20 years was 4.5% of GDP. It is estimated that the deficit under the current account in 1999-2000 will average 5.5% of GDP.

The Australian government has achieved a budget surplus, and the current account deficit is mainly caused by private sector transactions, including private investment and lending; With the extensive and in-depth reform, the foundation of private investment and lending will be more solid.

Australia will continue to be a major commodity exporter. Australians have great advantages in producing complex and advanced products, from auto parts to fast ferries. It also has advantages in the service industry, from tourism to computer, education and financial services; With a sound telecommunications foundation, Australia is fully qualified to succeed in the e-commerce and online era.

The complete revolution of technology and the unstoppable changes in the Asia-Pacific region will bring unprecedented opportunities to the Australian economy-Australians will benefit from these opportunities because they have carried out firm and sustained economic reforms.