AUSTRALIA

Troubled waters

AA1

LOW RISK for entreprise

  • Economic risk

  • Business environment risk

  • Political risk

  • Commercial risk

  • Financing risk

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GDP USD1323.4bn (World ranking 13, World Bank 2017)
Population 24.6mn (World ranking 53, World Bank 2017)
Form of state Federal Parliamentary Democracy (Commonwealth)
Head of government Scott MORRISON (PM)
Next elections 2022, Senate and House of Representatives
  • Large natural resource endowments
  • Strong infrastructure and business environment
  • Proximity with Emerging Asia
  • Low public debt
  • Top touristic destination
  • Dependent on Chinese demand and commodity prices evolution
  • High exposure to a change in climate and to natural hazards
  • External vulnerabilities stem from chronic current account deficit and high external debt
  • High household debt

Trade structure by destination/origin

(% of total)

Exports Rank Imports
China 32%
1
23% China
Japan 16%
2
11% United States
South Korea 7%
3
7% Japan
United States 5%
4
5% South Korea
India 4%
5
5% Thailand

Trade structure by product

(% of total)

Exports Rank Imports
Metalliferous ores 28%
1
12% Road vehicles
Coal, coke and briquettes 15%
2
11% Petroleum
Gas 7%
3
6% Other industrial machinery
Gold, non-monetary 6%
4
5% Telecommunication
Meat 5%
5
5% Electrical machinery
The payment behavior of domestic companies is good compared to international standards. However, delays are registering a deteriorating trend and average DSO now stands at 50 days.

  • Low

  • Medium

  • Sensitive

  • High

  • Payments

  • Court proceedings

  • Insolvency proceedings

The court system is complicated by the country's federal structure and provides no fast-track proceedings for the settlement of undisputable claims. The courts are otherwise efficient, but delays and costs tend to be significant and enforcing foreign judgments may prove difficult

Insolvency proceedings are complex and expensive, and chances of recovery are very low.

Euler Hermes

Economic Research Team

research@eulerhermes.com

Gregor Eder

Country Risk Analyst

gregor.eder@allianz.com

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