Australia sits on 19th and 22nd numbers on the lists of top import and export countries, respectively. So, what is the country’s main trade?
Because of the pandemic, recent months has seen a decline in economy and problems with import and export for many economies. In 2020, many countries halted their produce and stopped manufacturing in higher quantities. Many, save one, that is Australia. Because it was not only one of the countries with the best responses to Covid-19, it was also one of the quickest to recoveries.
However, that is a topic for another time. Today, we are going to look at the top exports and imports in Australia. One of the growing and leading economies of the world, Australia has done fairly well in the past couple of decades. So, we will be discussing a few of its top exports, as well as top imports.
Understanding Imports & Exports
Before we begin, it is important to understand what is an import and what is export. Import is when a country requires goods and products from another country, preferably one that is renowned for a particular kind. Now, the flip side of that coin, export is when a country is good at producing or creating a product in high quality and quantity, they export it. It has been around for centuries, with the United States and China being two of the top names in each respective category. With crude oil and petroleum being the top exports and imports in the world today.
Australia’s Top Exports
So, where does Australia stand? One of the top tourist countries and growing economies has its renowned categories when exporting products. So, what are Australia’s top exports? Here are 6 of them:
1. Mineral Fuel\Oils
Mineral fuels include a variety of fossil fuels. Including coal, petroleum and natural gas. Australia, being one of the countries rich with its natural resources of Oil and Coal, exports a huge chunk of it around the globe. Australia is one of the top five producers of such minerals around the globe. So, Australia earns roughly around $85 billion each year in earning from exporting mineral fuels alone. With its amounting of $133.3 Billion and 42% of Australia’s economy back in 2015.
2. Iron & Other Ores
Iron ores is one of the top minerals found in Australia, with it being the country’s second-largest source of income through exports. In 2017, it amounted to 45 billion in USD. Australia is also hailed as one of the top exporters as it averagely ships 800 million tonnes each year.
3. Precious Metal (Gold)
Precious metals include a variety of metals, such as silver, gold, and copper. Australia is one of the top exporters with an average of 300 tonnes of gold in both unrefined and refined categories. In 2018, the natural resource earned Australia a “modest” 14 billion US dollars.
Australia is also hailed as one of the most valuable meat exporters around the globe. In 2019, the Trans-Tasman country amounted for 16pc global beef production. Moreover, it earned 10.8 billion Australian dollars from meat exports alone.
5. Inorganic Chemicals
Inorganic chemicals can divide and become a variety of useful chemicals. From WD-40 to cleaning materials. So, the country is set to retain its stature as one of the leading countries in yet another category, with inorganic chemicals set to earn the country 42 AUD millions in 2021 alone.
6. Machinery & Computers
On the 6th on this list, is machinery and computers. Which earn the country an adequate amount of 5 billion on average each year. Amounting to 3-4% of total exports.
Australia’s Top Imports
Now that the exports are out of the way, let us talk about imports. Much like many other mineral-rich countries, Australia, too, requires a lot of import. So, let us look at a few of them.
1. Processed Petroleum
Australia is one of the leading oil mining and processing countries in the globe. So, needless to say, that their processed petroleum and crude oil import is higher than anything else. However, they import 90% of their required consumption and they spend $18.9 billion in expenses each year.
2. Cars & Automobile
Much like many other countries, Australia imports most of its vehicles, despite having suitable local facilities. However, the car and vehicle import of Australia accounts for 30% of their total automobiles. Spending 16.9 billion each year.
3. Other Top Imports
Australia spends $8.5 billion on the import of mobile phone devices. Whereas on computers, they spend $7.2 billion on average. While their medical needs require them to import $5.3 billion worth of pharmaceuticals.
Australia’s Top Import & Export Partners
Now that we know their top imports and exports, let us talk about their top trading partners.
China leads the ways in both elements, as the country exports 35% and imports 25% of their total trade.
2. South Korea
South Korea is second on the list with 7% of exports and 9% of imports.
Japan exports more than it imports from Australia, with 14% and 8% respectively.
India does not import much from Australia but the exports account for 6%.
5. United States
Last but not the least, Australia does not export much from United State but their imports make a total of 10% and amount to 20.5 billion.
Does Australia produce goods organically?
Yes, it does. As mentioned above, Australia is a mineral and resource-rich country. Which is why its supply exceeds its demand and that is why they export it.
How long does it take to import products from Australia?
Depending on your destination and quantity, it could take anything from 5 days to 45 days before your product(s) reaches your destination.
Is Australia a good place to invest money in?
Yes, it is. Aside from the fact that it has a strong economy, its currency value and their control on Covid-19 is also one of the good reasons why you should invest in Australia.