The economy of Australia [E1] [F1] [Es1] [I1] is traditionally based on agriculture and mining.
Since its population is relatively small, a considerable part of its products are exported. Britain used to be its main trading partner, but Japan and the USA have taken its place. In fact in the last 30 years Australia's main trading partner is no longer Europe but Asia, especially with countries like Japan, Korea, Taiwan and Singapore.

Australia is the world’s biggest exporter of wool, beef, veal and mutton. There are about 140 million sheep in the country, most of which are the famous Merinos [E1] [I1]. Production of meat and wool is closely associated with wheat farming; in fact agriculture in Australia [E1] [F1] [F2] [I1] is mostly mixed, with rotation of crops and cattle or sheep grazing on the same farmland. It is highly mechanized and only about 5% of the workforce is employed in it.

Australia is also one of the world's major producers of minerals and metals. It exports large quantities of iron, coal, bauxite, uranium and gold. Its gold mines (one of the most famous is Broken Hill) [E1] [F1] [F2] [I1] [Es1] have doubled production in the last ten years. Australia, in fact, is the third largest producer of gold in the world.

Over the last 40 years the Australian economy has undergone considerable diversification and expansion, mainly in the manufacturing industry and in the service sector. Manufacturing employs about 17% of the workforce and ranges from food and fashion to electronic equipment and plastics. The service industry, including community services, communication, financial and business service and trade, employs the remaining 78%.

Australia is also strengthening its commercial and economical relationships with the rising Asiatic markets, in particular with the Chinese one.