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"Only" 16-18%? How much of that from exports? Which pumps more money into the economy where it has a lot of follow-up effects. Given that a rise or fall in GDP

"Only" 16-18%? How much of that from exports? Which pumps more money into the economy where it has a lot of follow-up effects. Given that a rise or fall in GDP of a low single-digit percentage point can already mean a big boom or bust the above number is huge.

daemin 10y ago
Yes, despite it being the poster child, the mining sector only comprises 16-18% of the economy. I would say all of it was from exports, since Australia doesn't really do much smelting any more. Aluminium smelters have closed down, no more lead or iron smelters either. We just export red dirt to China. Out of that percentage, I don't think it would include all of the other mining related industries in that figure, or the effects on rutal mining towns. But just as there are positive flow on effects, once that flow stops then towns and communities die and people have to move elsewhere for work. This was already the case for towns dealing with mine and plant closures from earlier booms, it usually takes decades. There is also a lot of temporary fly-in-fly-out labour in mining. Where the workers don't settle down in towns near the mines, but back in Perth and other bigger towns and cities. As such Perth has experienced a property bubble of sorts relating to mining, even though its not as popular a place to live as the east coast. I can't remember exactly but the Banking sector in Australia may be the bigger than mining.
- Noseshine 10y ago
  > Yes, despite it being the poster child, the mining sector only comprises 16-18% of the economy. Uhmm.... I just pointed out that the use of the word "only" is not justified... :-) > I can't remember exactly but the Banking sector in Australia may be the bigger than mining. What do you mean by "larger"? Employ more people, pay more wages? Just "having" money (and large numbers in their balance sheets) is kind of a given for that sector. Besides, the point never was finding the "biggest". Somebody can be a tall person even if they are not the "tallest". So large changes to that sector will have large effects to the overall economy, many of them indirect.
  - daemin 10y ago
    Larger means contribute a bigger percentage to Australia's economy. GDP makes sense but I cannot recall 100%.

daemin 10y ago

Yes, despite it being the poster child, the mining sector only comprises 16-18% of the economy. I would say all of it was from exports, since Australia doesn't really do much smelting any more. Aluminium smelters have closed down, no more lead or iron smelters either. We just export red dirt to China. Out of that percentage, I don't think it would include all of the other mining related industries in that figure, or the effects on rutal mining towns. But just as there are positive flow on effects, once that flow stops then towns and communities die and people have to move elsewhere for work. This was already the case for towns dealing with mine and plant closures from earlier booms, it usually takes decades. There is also a lot of temporary fly-in-fly-out labour in mining. Where the workers don't settle down in towns near the mines, but back in Perth and other bigger towns and cities. As such Perth has experienced a property bubble of sorts relating to mining, even though its not as popular a place to live as the east coast. I can't remember exactly but the Banking sector in Australia may be the bigger than mining.

Noseshine 10y ago
> Yes, despite it being the poster child, the mining sector only comprises 16-18% of the economy. Uhmm.... I just pointed out that the use of the word "only" is not justified... :-) > I can't remember exactly but the Banking sector in Australia may be the bigger than mining. What do you mean by "larger"? Employ more people, pay more wages? Just "having" money (and large numbers in their balance sheets) is kind of a given for that sector. Besides, the point never was finding the "biggest". Somebody can be a tall person even if they are not the "tallest". So large changes to that sector will have large effects to the overall economy, many of them indirect.
- daemin 10y ago
  Larger means contribute a bigger percentage to Australia's economy. GDP makes sense but I cannot recall 100%.