Australian Trade Now On A Healthy Boom

Since it is Christmas season again in Australia, holiday visa holders are now flocking back into the country. And it seems that tourists are not the only ones that are excited about the development. As it is, the influx of tourists into the country is an indication of the healthy status of the country's economy.

And it is not only the tourism industry that is booming nowadays. In fact, every aspect of the Australian economy has seen significant growth in the past few months. For instance, the mining industry is enjoying a significant amount of growth, due to the large revenues generated by coal and iron ore exports. Another industry that has shown significant growth this year is the information technology field, which was further boosted by the introduction of the National Broadband Network project.

Overall, the Australian economy posted a trade surplus of more than $2.3 billion. Here event though the country's exports dipped by 2.0 percent, this was offset by a 5.0 percent drop in imports. For those not familiar with such economic figures, what this means is that Australia doesn't purchase as much products from other country as in previous months. This indicates that the country will be able to supply the needs of its people.

Economists are very optimistic of these developments. According to AMP Capital Investors chief economist Shane Oliver, this one is definitely a good sign. He explained that the positive trade growth will serve as a boost to other sectors of the economy

Other economists also said that this one is a clear indication that the country is well underway to full recovery after the financial crisis of 2007. Experts noted that Australia was actually one of the first countries to be hit when the crisis broke out. However, through the government's careful management, the country was able to institute a mitigation program that lessened its impact.

However, while some economic experts do agree that this one is indeed good, they said that it is still not yet time to get overexcited about it. They said that there are still factors that would likely affect the country's economy. One of these would be the increase in petrol prices. Experts pointed out that the price of oil have started to move up for its annual year end rise. This, they pointed out, will offset a bit of the gains from the healthy trade that the country is now experiencing.

The Deal With The Australian NBN

One of the biggest things that has caught the ears of Australian business visa holders these past few months is the National Broadband Network that the the government is continuously pushing for in the past three years. And with the technological gains that it promises to deliver, one can understand why the government has been so enthusiastic about the project. However, according to some experts, there are still a lot of things that needs to be sorted out before it can be fully implemented.

Before going on, it would be a good idea to know more about the project. The National Broadband Network project started as a proposal by former Prime Minister Kevin Rudd during his run for elections in 2007. Upon being elected, Rudd's administration immediately started accepting proposals for the development of the NBN. However, all the proposals were ultimately rejected, with the Australian government opting to shoulder the construction.

The construction of the network was begun in 2009, with the laying of the initial system in Tasmania. The Tasmanian section of the system was formally launched on August 12, 2010, with the attendance of current Prime Minister Julia Gillard. However, the development of the rest of the network was put temporarily in limbo with the 2010 Federal Elections held in late August, with the Liberal Party vowing to block the development of the project. With Gillard and the Labor Party winning, the NBN project was soon restarted.

According to initial proposals, the NBN would be able to deliver 100 Mbps (megabits per second) of internet speed to consumers. However, during the Tasmania launch, the administration announced that the speed was upgraded and now pegged to 1 Gbps (gigabits per second), making it one of the fastest commercial networks available to date. The network is also expected to serve around 93 percent of the households in the country.

However, with a AU$ 43 billion initial outlay, the network is certainly not going to be cheap. And because of that, customers can expect that the actual service is not going to be cheap either. According to internet experts, homes wishing to avail of the service is likely to shell out anywhere from AU$ 200 to AU$ 400 to hook their homes to the network. However, they also added that those who opt not to avail of the option will also be able to experience an improvement in their connection.

A lot of groups have criticized the cost of the system, many have also proposed alternatives that they claim will be able to provide the same benefits while being significantly cheaper. However, the government is still adamant that the NBN is the best way to go. Whether or not this one proves correct will only been known once the network becomes fully online.