1. Australia
A Global Financial
Services Centre
Benchmark Report 2010

2. AUSTRALIA
A Global Financial Services Centre
Australia has emerged from the Global Financial Crisis
with its standing as a financial centre in the region
enhanced.
Australia weathered the worst of the global financial crisis. Australia’s financial sector
remains in robust good health, underpinned by a world best practice regulatory system.
The World Economic Forum’s Financial Development Report 2009 has also ranked
Australia second out of 55 of the world’s leading financial systems and capital markets.
ABN 11 764 698 227
Australia is home to the world’s fourth largest pool of contestable funds under Date: September 2010
management, which is also the largest in the region. The funds management sector has ISBN: 978-0-9807059-3-5
grown five-fold since 1995, at a compound annual growth rate of 12 per cent, and now
has A$ 1.7 trillion in funds under management. DISCLAIMER
This report has been prepared as a general overview.
It is not intended to provide an exhaustive coverage
Australia’s impressive record of sustained economic and employment growth is of the topic. The information is made available on the
expected to continue. The IMF forecasts Australian economic growth of 3.0 per cent in understanding that the Australian Trade Commission
2010 and 3.5 per cent for 2011. This compares favourably with those of other advanced (Austrade) is not providing professional advice.
Therefore, while all care has been taken in the
economies. Australia’s unemployment rate is also relatively low at 5.3 per cent. preparation of this report, Austrade does not accept
The 2010 IMD World Competitiveness Yearbook has rated Australia’s economy as the responsibility for any losses suffered by persons relying
second most resilient in the world. on the information contained in this report or arising
from any error or omission in the report. Any person
relying on this information does so entirely at their
These core economic strengths, our robust institutional framework, the openness of own discretion and Austrade strongly recommends the
our economy and the size, depth and sophistication of our markets will underpin the reader obtain independent professional advice prior to
acting on this information.
future growth of the financial services sector.
Austrade’s role includes to facilitate engagement by
The Australian Government has continued to take important steps to support the Australian financial services exporters in markets
outside Australia. Austrade is not a promoter of any
internationalisation of the financial sector and to enhance Australia’s attractiveness
financial services products or investments and does
as a global financial services centre. not provide investment advice. Austrade assumes no
responsibility for any company, product or service
mentioned in this document, for any materials
provided in relation to such products, nor for any act
or omission of any business connected with such
products. Investors should always consider whether an
investment is appropriate for their needs and seek out
independent advice as appropriate.

3. SECTION 1
Strong Economy
Australia’s performance through the Global World’s 20 Largest Economies 2
Financial Crisis confirms its standing as one Real GDP Growth by Country 3
of the world’s most resilient economies. Resilience of the Economy to Economic Cycles 4
Unemployment Rates by Country 5
Australia’s Real Gross Value Added by Industry 6
Australia’s Real Gross Value Added – Growth by Industry 7
Gross Fixed Capital Formation as a Percentage of GDP 8
Inward Foreign Direct Investment Stocks by Country 9
Australia’s Exports of Goods and Services 10
Australia’s Exports of Education Services 11
The Prosperity Index – World Ranking by Country 12
Net Government Debt 13
Percentage of Nonperforming Bank Loans to Total Bank Loans 14
Strong
Economy

4. World’s 20 Largest Economies – 2010F
Percentage share of total world nominal GDP in US$
Rest of World 19.17%
14. Mexico 1.61%
15. South Korea 1.60%
16. Netherlands 1.29% 1. USA 23.96%
17. Turkey 1.15%
18. Indonesia 1.09%
19. Switzerland 0.87%
20. Belgium 0.78%
8.39%
13. Australia 1.93% 2. China 8.69%
12. India 2.21%
11. Spain 2.31%
3. Japan 8.54%
10. Russia 2.44%
9. Canada 2.52%
8. Brazil 3.09%
7. Italy 3.43% 4. Germany 5.40%
6. UK 3.60% 5. France 4.32%
GDP of the world’s 183 economies: US$61,767 billion
GDP of Asia Pacific Economic Cooperation’s 21 member economies: US$34,483 billion (55.83%)
F = Forecast
Sources: International Monetary Fund, World Economic Outlook Database, April 2010; Austrade
Although Australia’s population is less than half a per cent of the global total, its economy ranks the 13th largest in the world, rivalling countries such as
India, South Korea and Netherlands. Australia’s GDP is now estimated at around US$1.2 trillion, the fourth largest economy in the Asia-Pacific region.
Section 1. Strong Economy 2

5. Real GDP Growth by Country – 2002 to 2010F
Average Growth Rate
Country 1998 to 2010 2002 2003 2004 2005 2006 2007 2008 2009 2010F
China 9.7 9.1 10.0 10.1 10.4 11.6 13.0 9.6 9.1 10.5
India 7.0 4.6 6.9 7.9 9.2 9.8 9.4 6.4 5.7 9.4
Vietnam 6.9 7.1 7.3 7.8 8.4 8.2 8.5 6.2 5.3 6.5
UAE 5.4 2.6 11.9 9.7 8.2 8.7 6.1 5.1 -0.7 1.3
Singapore 5.0 4.2 3.8 9.2 7.6 8.7 8.2 1.4 -1.3 9.9
Korea 4.2 7.2 2.8 4.6 4.0 5.2 5.1 2.3 0.2 5.7
Philippines 4.2 4.4 4.9 6.4 5.0 5.3 7.1 3.8 1.1 6.0
Malaysia 4.1 5.4 5.8 6.8 5.3 5.8 6.2 4.6 -1.7 6.7
Taiwan 4.0 5.3 3.7 6.2 4.7 5.4 6.0 0.7 -1.9 7.7
Indonesia 3.5 4.5 4.8 5.0 5.7 5.5 6.3 6.0 4.5 6.0
Hong Kong 3.4 1.8 3.0 8.5 7.1 7.0 6.4 2.1 -2.8 6.0
Australia 3.3 3.9 3.2 3.6 3.2 2.6 4.7 2.4 1.3 3.0
Thailand 3.2 5.3 7.1 6.3 4.6 5.1 4.9 2.5 -2.2 7.0
Brazil 3.1 2.7 1.1 5.7 3.2 4.0 6.1 5.1 -0.2 7.1
Greece 3.0 3.4 5.9 4.6 2.2 4.5 4.5 2.0 -2.0 -2.0
Spain 2.7 2.7 3.1 3.3 3.6 4.0 3.6 0.9 -3.6 -0.4
Canada 2.7 2.9 1.9 3.1 3.0 2.9 2.5 0.5 -2.5 3.6
New Zealand 2.5 4.9 4.2 4.4 3.2 1.0 2.8 -0.1 -1.6 3.0
USA 2.4 1.8 2.5 3.6 3.1 2.7 2.1 0.4 -2.4 3.3
UK 2.0 2.1 2.8 3.0 2.2 2.9 2.6 0.5 -4.9 1.2
Netherlands 2.0 0.1 0.3 2.2 2.0 3.4 3.6 2.0 -4.0 1.3
Switzerland 1.8 0.4 -0.2 2.5 2.6 3.6 3.6 1.8 -1.5 1.5
France 1.7 1.1 1.1 2.3 1.9 2.4 2.3 0.1 -2.5 1.4
Germany 1.0 0.0 -0.2 1.2 0.7 3.2 2.5 1.2 -4.9 1.4
Italy 0.7 0.5 0.0 1.5 0.7 2.0 1.5 -1.3 -5.0 0.9
Japan 0.6 0.3 1.4 2.7 1.9 2.0 2.4 -1.2 -5.2 2.4
World Average1 2.6 2.0 2.7 4.0 3.4 3.9 3.9 1.8 -2.0 3.6
F = Forecast; UAE = United Arab Emirates
1. Based on market exchange rates
Sources: International Monetary Fund, World Economic Outlook (WEO) Database, April 2009; WEO Update July 2009; Austrade
In the July 2010 Update of the International Monetary Fund’s (IMF) World Economic Outlook, the IMF has forecast that the Australian economy will
grow by 3.0 per cent in 2010 and 3.5 per cent in 2011, giving it a brighter outlook than that of the advanced economies as a whole. A timely response to
the financial crisis, a healthy banking sector, rigorous regulatory environment, flexible exchange rate and sustained demand from China for Australian
commodities helped to avoid the worst of the financial turbulence that other economies experienced.
Section 1. Strong Economy 3

6. Resilience of the Economy to Economic Cycles – 2006 to 2010
The higher the score the better1
Rank Country 2006 Score Country 2007 Score Country 2008 Score Country 2009 Score Country 2010 Score
1 Australia 7.39 Denmark 7.45 Australia 6.78 Qatar 6.16 Israel 7.13
2 USA 7.22 USA 6.90 Denmark 6.73 Norway 5.96 Australia 7.04
3 Denmark 7.16 Israel 6.82 Switzerland 6.43 Australia 5.83 India 6.82
4 Hong Kong 7.09 Austria 6.67 Israel 6.14 Chile 5.83 Qatar 6.82
5 India 6.84 Malaysia 6.64 Austria 6.00 Denmark 5.79 Malaysia 6.63
6 Israel 6.80 Switzerland 6.43 Norway 5.96 India 5.78 Chile 6.29
7 Ireland 6.68 Australia 6.38 Chile 5.89 Brazil 5.54 Switzerland 6.27
8 Norway 6.68 India 6.33 India 5.87 Israel 5.53 Norway 6.11
9 Chile 6.41 Hong Kong 6.33 Brazil 5.83 Switzerland 5.38 Taiwan 6.07
10 Canada 6.38 Singapore 6.19 Finland 5.80 China 5.05 China 6.02
11 Switzerland 6.34 China 6.17 Singapore 5.78 Malaysia 5.04 Poland 5.80
12 Malaysia 6.34 Norway 6.08 Sweden 5.66 Finland 5.00 Singapore 5.78
13 Japan 6.32 UK 6.02 Netherlands 5.66 Austria 4.98 Sweden 5.75
14 Qatar 6.31 Chile 6.00 Malaysia 5.66 Singapore 4.96 Indonesia 5.64
15 Singapore 6.30 Taiwan 5.79 Hong Kong 5.61 Hong Kong 4.94 South Korea 5.55
16 Estonia 6.19 Japan 5.79 Taiwan 5.52 Taiwan 4.91 Canada 5.55
17 Finland 6.02 Ireland 5.76 Czech Republic 5.41 South Africa 4.84 Brazil 5.51
18 Iceland 6.00 Luxembourg 5.73 Canada 5.36 Netherlands 4.83 Philippines 5.50
19 China 5.90 Estonia 5.72 Germany 5.34 Germany 4.79 Austria 5.46
20 Thailand 5.82 Netherlands 5.66 Slovenia 5.29 Sweden 4.77 Hong Kong 5.40
21 UK 5.82 Slovenia 5.66 USA 5.29 Philippines 4.73 Thailand 5.33
22 South Africa 5.75 Sweden 5.61 Estonia 5.27 Slovenia 4.63 Denmark 5.22
23 Sweden 5.72 Czech Republic 5.60 Jordan 5.15 Lithuania 4.60 Netherlands 5.20
24 Jordan 5.67 Jordan 5.50 China 5.15 Jordan 4.60 Germany 5.14
25 Taiwan 5.65 Iceland 5.44 Ireland 5.02 New Zealand 4.49 Turkey 4.87
Surveyed question: Resilience of the economy to economic cycles is strong.
1. IMD World Competitiveness Yearbook Executive Opinion Survey based on an index from 0 to 10. The IMD included 58 economies in the 2010 survey.
Sources: IMD World Competitiveness Online 1995-2010 (Updated: May 2010); Austrade
The Australian economy has recorded 19 years of uninterrupted growth to 2010, despite two global downturns. The strength of the Australian economy
is well recognised. The 2010 Institute for Management Development (IMD) World Competitiveness Yearbook rated Australia’s economy the second most
resilient in the world. For countries with populations greater than 20 million, Australia ranked first in 2009 and 2010, and has topped this category in eight
of the previous nine years.
Section 1. Strong Economy 4

7. Unemployment Rates by Country – 2007 to 2010
Unemployment Rate – Percentage of Labour Force
Annual Latest Rate1
Country 2007 2008 2009 2010
Spain 8.3 11.3 18.0 20.1
Ireland 4.6 6.1 11.8 13.7
Turkey 10.3 11.0 14.1 12.0
Greece 8.3 7.7 9.5 11.7
Portugal 8.0 7.6 9.5 10.6
France 8.0 7.4 9.1 9.5
Sweden 6.0 6.2 8.3 9.5
USA 4.6 5.8 9.3 9.5
Belgium 7.5 7.0 7.9 8.6
Chile 7.1 7.8 10.8 8.5
Italy 5.9 6.7 7.8 8.4
Canada 6.0 6.1 8.3 8.0
UK 5.4 5.7 7.6 7.8
Germany 8.7 7.5 7.7 7.6
Brazil 9.3 7.9 8.1 7.0
Russia 6.1 6.4 8.4 6.8
New Zealand 3.7 4.2 6.1 6.8
Netherlands 4.5 3.9 4.9 5.5
Australia 4.4 4.2 5.6 5.3
Japan 3.9 4.0 5.1 5.3
China 4.0 4.2 4.3 4.2
South Korea 3.3 3.2 3.7 3.7
Switzerland 3.5 3.4 4.2 3.6
Norway 2.5 2.6 3.2 3.0
1. Latest unemployment rate for each country – annual rates not yet available.
Sources: 2007 to 2009 data extracted on 18 August 2010 from OECD.Stat, and 2010 latest figures sourced from Bloomberg; Austrade
Australia’s unemployment rate has eased to just over 5 per cent after peaking at 5.8 per cent in the middle of 2009. Australia’s latest unemployment rate
is almost half that of the Euro area and the United States. Australia is also ranked second globally in terms of economic resilience which in part reflects
the openness of the economy and sustained economic reforms over recent decades. Over the past year, employment in Australia rose by a strong
300,000.
Section 1. Strong Economy 5

8. Australia’s Real Gross Value Added by Industry – 20101
Manufacturing 9.1% Finance/Insurance 10.8%
Generated $A121 billion
Mining 7.3% Professional/Scientific/
Technical Services 6.5%
Agriculture/Forestry/Fishing 2.8%
Healthcare/Social Assistance 6.3%
Construction 7.5%
Public Administration/Safety 5.5%
Utilities 2.6%
Transport/Postal/Warehousing 5.4%
Other Services2 15.7%
Wholesale Trade 4.9%
Retail Trade 4.9%
Information Media/Telecommunications 3.0%
Education/Training 4.4%
Rental/Hiring/Real Estate Services 3.3%
Service Industries 80.8%
1. Annual total to March 2010.
2. Including Accommodation/Food Services, Administrative/Support Services, and Arts/Recreation Services.
Sources: Australian Bureau of Statistics, cat. no. 5206.0, National Income, Expenditure and Product, Time Series Workbook (released 2 June 2010), Table 6; Austrade
The financial sector is the largest contributor to Australia’s national output, directly generating 10.8 per cent or A$121 billion of real gross value added
in 2010. This contribution is up from 8.9 per cent or A$53 billion two decades ago. Australia’s financial sector continues to grow more rapidly than most
other sectors of the economy, benefiting from significant structural reforms and strong and resilient economic growth over the past two decades.
The financial services industry is a major driver of Australia’s economic growth, contributing almost four times that of agriculture, forestry and fishing
(A$32 billion), and nearly 50 per cent more than mining (A$82 billion). The increasing significance of finance and insurance over the past two decades
has also aided growth in related sectors such as information, media and telecommunications, and other business services.
Section 1. Strong Economy 6

9. Australia’s Real Gross Value Added – Growth by Industry – 1999 to 20101
Construction 5.3
Administrative/Support Services 5.2
Professional/Scientific/Technical Services 5.1
Financial/Insurance Services 4.7
Healthcare/Social Assistance 4.4
Retail Trade 4.1
Arts/Recreation Services 4.1
Information Media/Telecommunications 3.8
Transport/Postal/Warehousing 3.6
Agriculture/Forestry/Fishing 3.5
Wholesale Trade 3.1
Mining 2.7
Accommodation/Food Services 2.6
Public Administration/Safety 2.6
All Industry Average Growth: 3.3% Per Annum
Rental/Hiring/Real Estate Services 2.2
Utilities 1.9
Education/Training 1.9
Manufacturing 0.9
0 1 2 3 4 5 6 7
Average Annual % Change
1. Annual total to March each year.
Sources: Australian Bureau of Statistics, cat. no. 5206.0, National Income, Expenditure and Product, Time Series Workbook, Table 6 (released 2 June 2010); Austrade
Australia’s finance and insurance sector has been one of the country’s highest performing industries, achieving an average annual growth rate of
4.7 per cent a year between 1999 and 2010. This is well above the combined average for all industries (3.3 per cent) and reflects the strength of
Australia’s service-based economy.
Section 1. Strong Economy 7

10. Gross Fixed Capital Formation as a Percentage of GDP – 2008
29.4
29.3
28.8
30 24.9
24.2
23.9
25 23.1
22.7
22.6
22.2
22.1
22.1
21.9
21.8
21.7
21.7
21.3
20.9
21.1
20.9
20.9
20.8
20.6
20.6
20.4
19.9
19.5
19.4
19.3
20
19.0
17.9
16.8
% of GDP
15
10
5
0
Switzerland
EU27 total
Austria
Spain
OECD total
Czech Republic
Poland
Australia
Iceland
Luxembourg
Finland
Belgium
Ireland
Portugal
France
Netherlands
Japan
New Zealand
Turkey
Sweden
Germany
Denmark
Greece
Mexico
Norway
South Korea
Canada
Italy
UK
Slovak Republic
Hungary
USA
Sources: OECD Factbook 2010: Economic, Environmental and Social Statistics (released 26 May 2010); Austrade
The share of total GDP devoted to investment in fixed assets is an important determinant of future economic growth. Higher capital investment tends to
increase productivity and contribute to higher GDP growth. Australia’s fixed capital investment as a percentage of GDP was 29.4 per cent in 2008, the
highest of all OECD countries. This rate is also well above the average of EU27 (21.1 per cent) and OECD (20.6 per cent).
Section 1. Strong Economy 8

11. Inward Foreign Direct Investment Stocks by Country
1990 1995 2000 2005 2006 2007 2008 2009 2009
Country Inward FDI Stock as a Percentage of GDP (%) (US$ Billion)
Switzerland 14.4 18.1 34.7 45.7 67.8 88.3 87.8 94.2 464
Netherlands 23.1 27.7 63.3 70.7 76.1 93.6 73.2 75.3 597
UK 20.6 17.6 30.4 36.9 46.7 44.4 36.8 51.7 1,125
Spain 12.7 17.5 26.9 34.0 37.4 40.6 39.1 45.9 671
France 7.9 12.2 29.4 41.5 48.8 48.6 32.3 42.8 1,133
Canada 19.4 20.9 29.3 30.1 29.3 36.3 29.5 39.3 525
Malaysia 23.4 32.3 56.2 32.2 34.3 41.2 33.1 39.0 75
Thailand 9.7 10.5 24.4 34.2 37.2 38.1 34.2 37.5 99
Australia 23.2 28.0 29.8 32.8 37.8 40.5 29.5 33.5 328
Brazil 8.5 6.2 19.0 20.6 20.3 22.7 17.6 25.5 401
USA 9.3 13.7 28.5 22.8 25.1 26.1 17.9 21.9 3,121
Germany 6.5 6.6 14.3 17.1 20.3 20.9 18.2 21.0 702
Russia – 1.4 12.4 23.6 27.0 38.2 12.7 20.3 252
Italy 5.3 5.8 11.0 12.6 15.8 17.2 14.8 18.6 394
Philippines 10.2 13.7 24.2 15.2 14.4 14.2 12.9 14.6 24
Greece 6.2 8.5 11.2 12.0 15.6 17.2 10.9 13.6 45
Indonesia 6.9 9.3 15.2 14.4 15.0 18.5 13.3 13.5 73
South Korea 2.0 1.8 7.1 12.4 12.5 11.4 10.2 13.3 111
India 0.5 1.5 3.5 5.1 7.5 8.8 9.6 12.9 164
Taiwan 5.9 5.7 6.0 11.8 13.3 12.4 11.3 12.7 48
China 5.1 13.4 16.2 12.2 11.0 9.7 8.7 10.1 473
Japan 0.3 0.6 1.1 2.2 2.5 3.0 4.2 3.9 200
World 9.8 11.4 23.3 25.4 29.1 32.5 25.4 30.7 17,743
Developed Economies 9.0 10.8 23.0 25.5 29.9 33.3 26.3 31.5 12,353
Developing Economies 13.6 14.6 25.0 25.2 26.9 30.0 24.4 29.1 4,893
Sources: United Nations Conference in Trade and Development Database (www.unctad.org/fdistatistics), Annex Tables 7 and 3; Austrade
Australia’s Foreign Direct Investment (FDI) stocks rose almost 350 per cent to US$328 billion between 1990 and 2009. This represents a compound
annual growth rate of 8.2 per cent since 1990. As a percentage of GDP, FDI in Australia rose from 23.2 per cent in 1990 to 33.5 per cent in 2009.
Section 1. Strong Economy 9

12. Australia’s Exports of Goods and Services (US$ Billion)1
Financial year ending 30 June
240
43
Merchandise Goods Commercial Services 49
45
Compound Annual Growth Rate since 1990: 7.8%
200
39 188
176
172
160
31
144
US$ Billion
30
120
114
24 26
20 98
80 19 19 19 18 18
16 77
15
75
14 68
11 11 11 60 60 59 61
9 54 57
40 47 48
39 40 41 41
0
1991
2001
1995
2007
2003
2005
1997
2004
2006
2009
1994
1999
2002
1993
1998
1992
2010
1990
2008
1996
2000
1. Australia’s exports in A$ were converted to US$ values, using US$/A$ exchange rate at the end of June each year from the Reserve Bank of Australia Statistics.
Sources: Australian Bureau of Statistics, cat. no. 5368.0, International Trade in Goods and Services, Australia, Table 1 (released 4 August 2010); Austrade
Australia’s annual export value of goods and services in US dollar terms fell 5.9 per cent to US$21 billion in 2009-10. Nevertheless, Australia has
7
experienced strong export growth for 16 of the last 20 years, and export value has increased by a compound annual growth rate of around 8 per cent.
The overall growth in the country’s external sector can be attributed to ongoing economic reform, Australia’s strong competitiveness, continued trade
openness, and diversified export markets.
Section 1. Strong Economy 10

13. Australia’s Exports of Education Services
Share of 2009 Change
2007 2008 2009 Total 2008 to 09
(A$ Million) %
Education Related Travel Services1 12,177 15,002 17,986 96.8 19.9
1. China 2,738 3,432 4,102 22.1 19.5
2. India 1,618 2,413 3,187 17.2 32.1
3. South Korea 964 1,082 1,117 6.0 3.2
4. Malaysia 670 756 856 4.6 13.2
5. Thailand 498 605 719 3.9 18.8
6. Vietnam 286 467 713 3.8 52.7
7. Nepal 173 380 614 3.3 61.6
8. Indonesia 487 525 576 3.1 9.7
9. Hong Kong 571 558 560 3.0 0.4
10. Brazil 268 365 425 2.3 16.4
Other countries 3,904 4,419 5,117 27.5 15.8
Other Educational Services2 383 495 556 3.0 12.3
Education Consultancy Services 132 124 115 0.6 -7.3
Correspondence Courses 22 25 24 0.1 -4.0
Services through Educational Institutions 104 203 250 1.3 23.2
Other Education Services 125 143 167 0.9 16.8
Royalties on Education Services 7 18 33 0.2 83.3
Total Education Related Services Exports 12,189 15,115 18,575 100.0 22.9
1. Includes international students on student visas only.
2. Export income does not include income generated by the operations of offshore campuses of Australian institutions.
Sources: Australian Education International, Research Snapshot, June 2009; Austrade
International education activity contributed A$18.6 billion in export income to the Australian economy in 2009, up 22.9 per cent from 2008. Education
services remain Australia’s fourth largest export, behind coal (A$39.4 billion), iron ore and concentrates (A$30.0 billion), and tourism (A$23.5 billion in
2008-09). Of the total export income generated by education services, A$18 billion was from spending on fees and goods and services onshore by
foreign students, with a further A$556 million from education consultancy and other services.
Section 1. Strong Economy 11

14. The Prosperity Index1 – World Ranking by Country – 2009
1.0
0.922
0.920
0.919
0.908
0.917
0.895
0.893
0.892
0.880
0.885
0.875
0.854
0.9
0.828
0.805
0.793
0.767
0.764
0.8
0.729
0.720
0.723
0.697
Scores (1 = the best, 0 = the worst)
0.7
0.581
0.569
0.546
0.6
0.547
0.537
0.501
0.473
0.5
0.422
0.420
0.4
0.3
0.2
0.1
0.0
Australia (6)
Finland (1)
Spain (19)
Norway (5)
Singapore (23)
Philippines (55)
Sweden (3)
USA (9)
China (75)
Hong Kong (18)
UAE (47)
Switzerland (2)
Netherlands (8)
New Zealand (10)
India (45)
Ireland (11)
Denmark (4)
Japan (16)
7)
Taiwan (24)
South Korea (26)
Indonesia (61)
UK (12)
Vietnam (77)
Germany (14)
Thailand (44)
Italy (21)
Canada (7)
Malaysia (39)
Brazil (41)
France (1
1. The Prosperity Index ranks 104 nations according to nine building blocks of prosperity. A country’s position in the overall Prosperity Index is produced by equally weighting
and averaging its nine sub-index scores. The scores are then ranked to produce the overall ranking. The Index measures prosperity across nine areas that have an
established empirical relationship with either national wealth or wellbeing: economic fundamentals, entrepreneurship and innovation, democratic institutions, education,
health, safety and security, governance, personal freedom, and social capital.
Sources: The 2009 Legatum Prosperity Index Report; Austrade
Australia has been ranked sixth in the world and first in the Asia-Pacific region in the Legatum Institute’s 2009 Prosperity Index of more than 100
countries. Countries were rated on the following: democratic institutions, economic fundamentals, education, entrepreneurship and innovation,
governance, health, personal freedom, safety and security, and social capital. Australia achieved the following top ten rankings: personal freedom (4th),
social capital (4th), democratic institutions (5th), education (6th), economic fundamentals (7th), and governance (10th).
Section 1. Strong Economy 12

15. Net Government Debt (% of GDP) – 2010
140
121.6
116.0
120
100
91.1
82.2
77.2
80
74.5
71.6
% of GDP
68.6
66.2
60.5
57.5
60
47.8
46.0
40
39.2
32.2
20
5.4
3.3
3.1
0
Portugal2
Australia1
Spain2
France
Netherlands
Ireland
Iceland
Austria
New Zealand
Switzerland
Canada
Belgium
Denmark
USA
Germany
UK
Japan
Italy
1. Does not reflect the latest federal government budget released 11 May 2010.
2. Does not reflect additional deficit reduction plans announced 10 May 2010.
Sources: IMF World Economic and Financial Surveys, Fiscal Monitor 14 May 2010, Table 3; Austrade
Australia’s net debt is estimated to be around 5 per cent of GDP, according to the IMF 2010 World Economic and Financial Surveys. The ratio is well
below the average of 69.9 per cent of GDP for advanced economies. The relatively low level of public sector debt reinforces Australia’s strong financial
position and sound economic credentials.
Section 1. Strong Economy 13

16. Percentage of Nonperforming Bank Loans to Total Bank Loans – 2004 to 2009
2004 2005 2006 2007 2008 2009 Latest Average
Thailand 11.9 9.1 8.4 7.9 5.7 NA Dec 8.6
Philippines1 14.4 10.0 7.5 5.8 4.5 4.6 Sep 7.8
Malaysia 11.7 9.6 8.5 6.5 4.8 3.8 Nov 7.5
China2 13.2 8.6 7.1 6.2 2.4 1.6 Dec 6.5
UAE3 12.5 8.3 6.3 2.9 2.5 4.6 Nov 6.2
Greece 7.0 6.3 5.4 4.5 5.0 7.2 Sep 5.9
Italy4 6.6 5.3 4.9 4.6 4.9 6.2 Jun 5.4
Indonesia5 4.5 7.6 6.1 4.1 3.2 3.8 Sep 4.9
India6 7.2 5.2 3.3 2.5 2.4 2.4 Mar 3.8
Germany 4.9 4.0 3.4 2.6 2.8 NA Dec 3.5
Brazil 2.9 3.5 3.5 3.0 3.1 4.5 Oct 3.4
France7 4.2 3.5 3.0 2.7 2.8 NA Dec 3.2
Singapore 5.0 3.8 2.8 1.5 1.7 2.3 Sep 2.9
Ireland8 0.8 0.7 0.7 0.8 2.6 7.5 Sep 2.2
USA9 0.8 0.7 0.8 1.4 2.9 5.4 Dec 2.0
Spain10 0.8 0.8 0.7 0.9 3.4 5.1 Dec 2.0
Japan11 2.9 1.8 1.5 1.4 1.6 1.8 Sep 1.8
Portugal12 2.0 1.5 1.3 1.5 1.9 2.8 Jun 1.8
UK 1.9 1.0 0.9 0.9 1.6 3.3 Jun 1.6
Hong Kong13 2.3 1.4 1.1 0.8 1.2 1.5 Sep 1.4
South Korea13 1.9 1.2 0.8 0.7 1.1 1.5 Sep 1.2
Netherlands 1.5 1.2 0.8 NA NA NA Dec 1.2
Canada 0.7 0.5 0.4 0.7 1.1 1.2 Sep 0.8
Switzerland 0.9 0.5 0.3 0.3 0.5 NA Dec 0.5
Australia14 0.2 0.2 0.2 0.2 0.8 1.1 Sep 0.5
Note: Due to differences in national accounting, taxation, and supervisory regimes, the data is not strictly comparable across countries.
1. The data excludes interbank loans. 2. Break in 2005; data started to cover all commercial banks. Previous years data covered “major commercial banks” (comprising
state-owned commercial banks and joint stock commercial banks). 3. Data for national banks only. 4. Exposure to borrowers in a state of insolvency (even when not recog-
nized in the court of law) plus exposure to borrowers in a temporary situation of difficulty. 5. Commercial banks. 6. Unless otherwise indicated, data refers to the end of the
fiscal year, i.e., March of the indicated calendar year. 7. Gross doubtful debts. Break in series in 2006. 8. Covers all licensed banks (49 as of Q3 2009). 9. All FDIC-insured
institutions. 10. Doubtful exposures to other resident sectors over total lending to other resident sectors. 11. Unless otherwise indicated, data refers to the end of the fiscal
year, i.e., March of the next calendar year; for major banks. 12. For 2005-06 the figures are for the sample of institutions that are already complying with IFRS, accounting as
of December 2004 for about 87 per cent of the usual aggregate considered. From 2007 onward, the sample of banking institutions under analysis was expanded to include
the institutions that adopted IFRS in 2006; On a consolidated basis. Nonperforming loans are defined as credit to customers overdue. Data for 2008 is preliminary. 13. Loans
classified as substandard, doubtful, and loss. 14. Impaired assets to total assets. Figures exclude loans in arrears that are covered by collateral.
Sources: International Monetary Fund, Global Financial Stability Report, April 2010, Statistical Appendix, Table 24; Austrade.
Australian banks have one of the lowest non-performing loans ratios of all 97 surveyed economies. Only 1.1 per cent of Australian bank loans are ‘non-
performing’. This ratio reflects Australia’s strong financial system, sound regulatory framework and the resilience of the economy.
Section 1. Strong Economy 14

17. SECTION 2
Liquid Markets
Australia’s financial markets are amongst Financial Development Index 2009 Global Ranking by Country 16
World’s 100 Largest Banks’ Credit Rating 17
the largest, fastest growing and most
Australia’s Financial Services Industry: Global Footprint 18
sophisticated in Asia.
Assets of Australia’s Financial Institutions 19
Global Significance of Australia’s Investment Fund Assets Pool 20
Australia’s Managed Funds Assets 21
Australian Investment Managers Asset Allocation 22
Global Pension Assets 23
World’s 25 Largest Sovereign Wealth Funds by 24
Assets Under Management
Size of Key Stock Markets in the Asia-Pacific Region 25
International and Domestic Debt Securities 26
Real Estate Investment Trust Market Capitalisation 27
Asia-Pacific Hedge Fund Assets Under Management 28
Australian Residential Mortgage-Backed Security Issuance 29
World Insurance Markets 30
High Net Worth Individuals by Country 31
Worldwide Announced Mergers and Acquisitions by Target Nation 32
Liquid
Markets

18. Financial Development Index 2009 Global Ranking by Country
UK Australia USA Singapore Hong Kong Japan China India
Overall Index (out of 55) 1 2 3 4 5 9 26 38
Financial Access 16 1 12 9 13 37 30 48
Non-Banking Financial Services 1 3 2 11 9 6 12 17
Banking Financial Services 2 5 20 11 1 3 10 39
Financial Markets 2 6 1 3 9 5 26 22
Financial Stability 37 9 38 5 3 34 23 46
Business Environment 12 11 10 2 9 15 40 48
Institutional Environment 15 14 11 1 10 17 35 48
Sources: World Economic Forum, The Financial Development Report 2009 (released 8 October 2009); Austrade
The World Economic Forum’s The Financial Development Report 2009 has ranked Australia second of 55 of the world’s leading financial systems and
capital markets, ahead of the United States, Singapore and Hong Kong. Australia leads the Asia-Pacific region as a result of its solid performance in
both banking (5th in the world) and non-banking financial services (3rd in the world). The report stressed that the efficiency of Australia’s banks (a key
component of banking financial services) is a key strength.
Section 2. Liquid Markets 16

19. World’s 100 Largest Banks’ Credit Rating
3,000
Australia’s four major banks
Assets US$ Billion (as of 31 December 2009)
2,500
2,000
1,500
1,000
500
0
AAA AA AA- A+ A A- BBB+ BBB BBB- NR
Sources: The chart was sourced from the Reserve Bank of Australia Financial Stability Report March 2009, page 25, Graph 38, and updated with the 2009 data of banks
assets from The Banker 1000 World Banks 2010 and Standard and Poor’s Credit Ratings (downloaded 27 July 2010) from Bloomberg; Austrade
Among the world’s 100 largest banks by assets, nine banks are rated AA or above – and four of these are Australian. Australian banks dealt with the
Global Financial Crisis better than banks in many other countries. This can be attributed to Australia’s high prudential standards, and Australian banks
focus on mainstream domestic activity and limited exposure to exotic derivatives.
Section 2. Liquid Markets 17

20. Australia’s Financial Services Industry: Global Footprint 2010
UNITED KINGDOM
CANADA
IRELAND NETHERLANDS
GERMANY
LUXEMBOURG
FRANCE SWITZERLAND
MALTA SOUTH KOREA UNITED STATES OF AMERICA
JAPAN
UNITED ARAB EMIRATES CHINA
OMAN INDIA TAIWAN
HONG KONG CAYMAN ISLANDS
THAILAND VIETNAM
MALAYSIA PHILIPPINES
SINGAPORE
INDONESIA
BRAZIL
SAMOA
FIJI
SOUTH AFRICA
NEW ZEALAND
Banking
Banking (Branch Office)
Banking (Rep Office) ASIA PACIFIC
EUROPE AFRICA & MIDDLE EAST AMERICAS
Funds Management
Property / Infrastructure Fund France South Africa China New Zealand Canada
Financial Planning & Advisory Services Germany Africa Non-Specified Fiji Philippines Cayman Islands
General Insurance Ireland Oman Hong Kong Singapore USA
Health Insurance Luxembourg United Arab Emirates India Samoa Brazil
Life Insurance Malta Middle East Non-Specified Indonesia Taiwan Non-Specified
Investment Administration Netherlands Japan Thailand
Mortgage Broking Services Switzerland Korea Vietnam
Stock Broking Services United Kingdom Malaysia Non-Specified
Source: Based on survey responses from a sample of Financial Services Council members
Australia’s financial services companies have rapidly expanded their operations around the globe. Australia has arguably the most efficient and
competitive financial sector in the Asia-Pacific region. The range of Australia’s financial companies’ activities extends to North America, Europe and
throughout the Asia-Pacific region, and reflects Australia’s comparative strengths in funds management and investment banking.
Section 2. Liquid Markets 18