Page 9 - 1. What Wealthy Means to Australians in 2023

4 . AUSTR ALIA (AND ITS HOUSEHOLDS)
TR ANSFORMED BY GLOBALISATION

By the 1970s let alone by the 1980s global megaforces
were reshaping Australia.

Australia is a wealthy nation. This much is fairly or even reasonably distributed.
evident across a number of metrics including But at least it’s a starting point.
gross domestic product (or national income).
And on this basis Australia’s fortunes
The Washington-based International have ascended substantially relative to
Monetary Fund (IMF) tracks GDP in USD other nations over recent decades.
on an annual basis for every country on
A large part of Australia’s success has
earth. This data can be converted into GDP
been its rise as a trading and export
per capita to get a sense of the average
nation. About one-quarter of our GDP is
national income.
currently derived from exports. In 1980
In 1980 Australia ranked 20th in the world this proportion was closer to 15 per cent.
by GDP-per-capita at USD$11,000 sitting just (Source World Bank.)
behind Germany ($11,110) and just above
Globalisation delivered prosperity to many
Austria ($10,732) (see Graphic 6).
Australians. This prosperity was transferred
Just 42 years later Australia’s GDP per capita into Australian housing. And so too was
jumped sixfold to rank 9th in the world with the financial dividend of greater workforce
USD$66,408 which is just below Iceland participation by women.
($73,981) and just above Denmark ($65,713).
Australian housing, the great store of
In fact, the only country ranked above wealth for many, morphed as a
Australia today in GDP per capita, and with
consequence. Out with the 3-bedroom
an equal or larger population, is the US (7th)
brick veneer (or weatherboard and iron);
with USD$75,180. About one-quarter of our GDP is
in with 4 bedrooms, 2 bathrooms, 2
Of course, there are issues in every country living rooms and, since the pandemic, currently derived from exports. In 1980 this
as to whether a notional GDP per capita is a Zoom room capability. proportion was closer to 15 per cent.”

8 What wealthy means to Australians in 2023