Economies of Australia & the Pacific Islands

An error occurred trying to load this video.

Try refreshing the page, or contact customer support.

Coming up next: Impact of Resources on the Movement of Products, Capital & People in Australia & the Pacific Islands

You're on a roll. Keep up the good work!

Take Quiz Watch Next Lesson
 Replay
Your next lesson will play in 10 seconds
  • 0:01 Economy of Australia
  • 3:17 Pacific Islands Economies
  • 4:32 Lesson Summary
Add to Add to Add to

Want to watch this again later?

Log in or sign up to add this lesson to a Custom Course.

Login or Sign up

Timeline
Autoplay
Autoplay
Create an account to start this course today
Try it free for 5 days!
Create An Account

Recommended Lessons and Courses for You

Lesson Transcript
Instructor: David Wood

David has taught Honors Physics, AP Physics, IB Physics and general science courses. He has a Masters in Education, and a Bachelors in Physics.

After watching this video, you should be able to describe the economies of Australia and the Pacific Islands, including sectors, partnerships and imports/exports. A short quiz will follow.

The Economies of Australia, New Zealand & Hawaii

For Americans, the Pacific might seem like little more than a dream holiday destination. But there's a lot more to these areas than their beautiful weather and unspoiled beaches.

Australia and the Pacific Islands cover a wide area and include a population of 37 million people. For this reason, summarizing the economy of the area is difficult: it varies a lot by island. But there are certain generalizations we can make. Australia, New Zealand and Hawaii are the only fully developed nations in the area, and so their economies are quite different than the remainder of the islands. Since they have many similarities, let's first talk about those three countries.

Australia, New Zealand and Hawaii (which is part of the United States), like most developed countries, have significantly service-driven economies. The service sector is much bigger than any other single sector for all three: it accounts for 68% of Australia's GDP (that's gross domestic product), 63% of New Zealand's GDP and a full 90% of Hawaii's GDP. These services include healthcare, law, accounting, tourism, engineering, government services (including the armed forces), finance and education.

In the case of Hawaii, tourism is very much responsible for the large service industry - few countries in the Pacific come close to achieving Hawaii's success in promoting itself as a tourist destination. There's a reason that saying the word 'Hawaii' makes most people think of sunny weather, pristine sandy beaches and hula dancing.

Australia's next most important sector is industry at 27% of GDP as of 2012. This includes mining and manufacturing. Agriculture is also an important sector at three to four percent of GDP. New Zealand's next most important sector is also industry at 23% of GDP as of 2013, a full 6.5% of which is primary industry. Hawaii's remaining ten percent is spread between agriculture, manufacturing and fishing.

Australia's main industries (in order of importance) are mining, industrial and transport equipment, food, chemicals and steel. Mining in particular has been a boom industry in Australia since the 1960s. New Zealand's main industries are food, textiles, industrial and transport equipment, finance, tourism and mining.

Australia and New Zealand are both part of several trade organizations, including APEC (Asia-Pacific Economic Cooperation), WTO (World Trade Organizations), EAS (East Asia Summit) and the OECD (Organization for Economic Co-operation and Development). But most notably for the focus of this lesson, EAS has the potential to become a full trade bloc in the future. This is especially important for the smaller pacific islands that rely on trade with Australia and New Zealand. Australia mainly exports to China and Japan and imports from China and the U.S. New Zealand's main import and export partners are Australia, China and the U.S.

To unlock this lesson you must be a Study.com Member.
Create your account

Register for a free trial

Are you a student or a teacher?
I am a teacher

Unlock Your Education

See for yourself why 30 million people use Study.com

Become a Study.com member and start learning now.
Become a Member  Back

Earning College Credit

Did you know… We have over 160 college courses that prepare you to earn credit by exam that is accepted by over 2,000 colleges and universities. You can test out of the first two years of college and save thousands off your degree. Anyone can earn credit-by-exam regardless of age or education level.

To learn more, visit our Earning Credit Page

Transferring credit to the school of your choice

Not sure what college you want to attend yet? Study.com has thousands of articles about every imaginable degree, area of study and career path that can help you find the school that's right for you.

Create an account to start this course today
Try it free for 5 days!
Create An Account
Support