Australia has a stable and prosperous economy with a diverse export base.

In 2008, Australia was the 14th largest economy in the world and the third largest in East Asia.

In 2008-09, Australia's two-way trade totalled $564 billion, up from $492 billion in 2007-08. China was Australia's largest trading partner, followed by Japan, the United States and the United Kingdom. About 68 per cent of Australia's trade was with the member economies of the Asia-Pacific Economic Cooperation (APEC) group, which includes both Australia and China.

Australia's largest export sector is minerals and energy (comprising 45 per cent of all exports) including iron ore, coal, crude petroleum, natural gas and a range of other minerals. Australia is a stable and reliable supplier of minerals and energy to China.

Australia's other major exports were services (including education and tourism), high quality manufactured goods and agricultural products.