CONFIDENTIAL
COMMONWEALTH HEADS OF GOVERNMENT MEETING, KUALA LUMPUR, 18-24
OCTOBER 1989
COUNTRY BRIEF NO 2
AUSTRALIA: POLITICAL AND ECONOMIC BACKGROUND
USEFUL STATISTICS
Population
UK Exports to Australia
Australian Exports to UK
UK visitors to Australia
Australian visitors to UK
GDP per capita
16.531 m (1988)
£1,378 m (1988)
£746 m (1988)
198,942 (1988)
359,000 (1988)
U$ 11,270 (1987) (latest figure
available)
POLITICAL
1.
Australian Labor Party (ALP) Government under Mr Hawke since March 1983. (In previous 30 years, Labor had held office only from 1972-1975.) Mr Hawke was re-elected in December 1984, and again in July 1987, the first-ever Labor Prime Minister to enjoy a third term. The Liberal/National Party opposition is prone to division. Mr Hawke has a highly competent Ministerial team. His Ministers of foreign affairs, trade, economy and defence have impressed internationally. A Federal election is expected before June 1990.
ECONOMIC
The
2. The Australian economy has traditionally relied on exports of agricultural and mineral commodities which together still account for about 75% of export earnings (the main agricultural commodities are wool, wheat, meat and sugar and the main mineral exports are coal, iron ore, and gas of which Australia has huge reserves). sharp downturn in world commodity prices during 1984/85 reduced export earnings and created a large and unsustainable current account deficit which at its highest point was more than 6% of GDP. This has been financed by overseas borrowing and consequently external debt has risen sharply from 11% of GDP in 1981 to over 30%
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