While India and China have had the status of the world’s fastest-growing economies interchangeably, no one has ever given much thought to Australia. Despite having a population on the upwards of 24 million and a bank of natural resources, people are only concentrating on the much-hyped economies of the world.
The Australian government has been proactive in its pursuit of free trade agreements with other nationals. It’s politically neutral stance makes it allied to so many countries and as a result, investment by foreign nationals is welcome. Australia is one of the states that have not been hit by a recession in the recent times and this means that their economy is relatively stable.
The adoption of technology
In the tech age, Australia has been keen to adopt the new technology not only to offset their industries but also to upset the status quo as some countries had had it. The rate at which Australia took in technology has spiralled into the financial and industrial sectors so much so that it has spurred monumental change in value addition and the rate of economic growth.
Historical alignment to growth
Historically, Australia is a very well-established country and has seen steady growth in its economy since it started as a nation in 1901. The demands for their natural resources has been increasing steadily, with the country being renowned for its high-quality animal products. Being a democracy, they have made strides towards improving the standard of living of her people. It has carried out significant reforms such as deregulating their banking sector among other significant changes in climate and the posterity of Australia. With an economic freedom score of 82.6, Australia provides a haven for innovators and other start-ups to grow.
Favorable government policies
As an incentive to foreign investment, the Australian government recently started a program to provide residency to the foreign investor at the cost of a small part of their fortunes. This is a move that has been received well world over. It provides a safe, low-risk environment to conduct business. The population has a considerable number of skilled workers, statistics that put it close to some of the top markets in the world.
Benefits of deregulation of the banking sector
Since the deregulation of the Australian banking sector, the sector has been able to thrive without the controls of the government. As a result of the unquestioning acceptance of the operation of the banking sector, the stocks of the banking sector have been doing well, a fact that is reflected in the CBA share price
The banking industry and the economy in general have embraced free-market economics. The Australian government website has shown statistics that show stable economic growth and a business-friendly environment. Investing in Australia can be done quickly through an ETF. The removal of controls has allowed for greater competition, convenience and diversity of choice for both individual and business users of financial services; and the stability and integrity of the financial system has primarily been maintained.
Access to financing
It has allowed for the existence of a greater variety of investment channels and products and additionally given more access to investment capital. This has in turn reduced the interest rates and the maturity periods for financing. The decreasing level of low-interest deposits has meant that the level of cross-subsidization between depositors and borrowers has dramatically decreased.