Australia’s economy has witnessed exponential growth over the past decade, even as the rest of the world battled with recession. This growth is largely owed to a mining and resources boom that has been prevalent over that period. Actually, the boom has been occasioned by increased demand for Australia’s minerals and construction equipment. The last few years have seen unprecedented growth of infrastructure in many Asian economies, and particularly in China, prompting a seemingly insatiable demand for construction equipment. In fact, the price of iron ore exported by Australia has increased nine times from the year 2004.
Beneficiaries of the Resources Boom
Perhaps the biggest beneficiary of this boom would be the mining industry. The price of iron ore, exported by Australia, for example, has increased nine times from the year 2004. This means that the revenue earned from iron ore alone has multiplied nine-fold in less than ten years. The trickle-down effect has flowed to mine workers in terms of increased wages as well as improved working standards.
Tourism on the Rise
But the benefits do not just end with the mining industry. One other sector that has made a killing from this boom is the tourism industry. Statistics have revealed an unprecedented increase in the number of visitors to the country. Apparently, more foreigners are developing interest in the country as a result of the boom. Some are just curious to see what the mining industry is like. Either way, that is good news for the Australia’s tourism industry.
Trade and Exports
The trade industry has also reaped big from the boom. The balance of trade with other countries has been in favour of Australia due to the large volumes of exports. Elsewhere, stock markets have benefited from the strengthening economy as well.
The boom has also encouraged an influx of foreigners into the country. Some immigrants come to work in the mining industry, while others come in as investors. This influx has boosted the transport industry in the country, particularly the airline industry. Immigrants as well as curious tourists flying in and out of the country have increased the revenue earned by Australia’s airline companies.
Real Estate
Furthermore the increase of immigrants is good news for the real estate and housing industry. As more people move in to work in the mines, it translates to increased number of customers for the real estate market because obviously all the immigrants will require housing. Rural urban migration is likely to fuel the growth of real estate even further.
Demand for Construction Equipment Increases
Although similar booms have been witnessed in the past, the demand for construction equipment is likely to keep increasing, which is welcome news for manufacturers such as Hyundai Construction Equipment. Asian economies are still growing very fast and if the current situation is anything to go by, then the end to the exponential growth of infrastructure is nowhere in sight. This means that Australia’s mining industry is set to grow even further. And more industries could still benefit from the boom in the future.
Although concerns have been raised over unequal distribution of the revenue earned from the resources, there is still hope that this will change in the long run. This will be an ongoing debate and will ultimately be decided by the economic leaders and government officials that are directly involved with these industries.
