Australia

Officially known as the Commonwealth of Australia, Australia is a country that consists of the Australian mainland, a large island called Tasmania and several smaller islands. Australia is the sixth-largest country in the world by total area and is the biggest country in Oceania.

The first European settlement of Australia was made in 1788 in what was known as Port Jackson and is now called New South Wales. Four British colonies were established, Western Australia, South Australia, Victoria and Queensland. Several stores were brought to the country along with over 1,000 convicts, seamen and marines who settled there to start their lives in a brand new environment. Land grants were eventually made, and by 1791 commercial whaling started. Whale oil and bone were profitable commodities and so this industry became one of the first major export industries in Australia. Before Governor King set up the value of a variety of foreign coins circulating in New South Wales in 1800, the first real means of exchange in Australia was rum. By 1821 private markets started functioning and from the 1820s economic growth became more and more dependent on rural commodities, for example, wool, that was supplied to Britain and Northwestern Europe as the industrial boom started. Several banks opened their doors to finance this trade, including the Bank of Australasia which was established in London in 1835 and the Union Bank of Australia which was launched in 1837. 

Two major depressions interrupted Australia’s economic growth which was once again stimulated by the gold discoveries of 1851. Mining, agriculture, local manufacturing and construction industries expanded to meet the needs of a rapidly growing population. The gold rush brought educated settlers from countries like the United Kingdom who brought skills that contributed to the growth of the economy and provided a foundation for free colonial societies. The flourishing economy fuelled by gold and wool lasted well through the 1860s and 1870s.

An investment boom in the 1880s saw massive economic expansion and an influx of capital led to the highest per capita incomes in the world during the 19th century. However, by the end of the century investors became concerned with actual returns and in 1890 a severe depression started. Several strikes followed but the worst of the crisis ended in 1894. Early in the 20th century, new goods like wheat, dairy and other agricultural products joined the economic activity of Australia alongside the wool trade. After World War Two changed the Australian economy completely, the country saw a series of economic reforms. Today Australia is a wealthy country that generates its income from various sources.