Regarding the volume of Australia's exports of goods and services, it increased by 0.8% in the June quarter of 2007, while for the 2006-2007 financial year, increased by 4%. The index of prices received for exports did not have an ascending evolution, since it decreased by 0.3% in the June quarter 2007. However, in the 2006-2007 financial year, export prices increased up to 6% (DFAT, 2007). Regarding rural goods, their exports fell 0.7% reaching $25.1 billion. The rural goods exports volumes fell 4% to 24.4 billion. The evolution of specific rural goods was the following: meat and meat preparations exports fell 14%, cereals exports fell 5%, wool and sheepskins exports increased 3%, while other rural exports fell 2%.

Non-rural goods exports increased up to 12%, reaching $131.9 billion. Exports volumes increased up to 5%, reaching $102 billion. The evolution of specific non-rural goods exports was the following: minerals and fuels exports increased up to 9%, reaching $72.8 billion; metal ores and minerals exports fell 1%; coal, coke and briquettes exports fell 3%, while other mineral fuels exports increased up to 5%.

Regarding other goods, their exports increased up to 15%, reaching $3.6 billion in June quarter 2007. Exports volumes also increased up to 16%. This evolution was due to significant increases in gold exports.

Services exports increased up to 10%, reaching $46.2 billion. Exports volumes increased 7%, reaching $43.2 billion. In this category, transportation exports increased 2% to $2.3 billion, travel services exports increased 2% to $6.6 billion, while other services exports decreased 0.2% to $3.1 billion.

The imports of goods and services increased by 8%, reaching $228 billion in the 2006-2007 financial year. The imports volume increased 10%. The imports prices decreased 1%.

The imports of consumption goods decreased 2% to $13.8 billion in the June quarter 2007, the imports of capital goods increased 0.5% to $20.5 billion, while other goods imports increased 10% to $2 billion. The imports of services increased 2% to $11.5 billion.

As a consequence, the deficit on the balance on trade increased by $264 million to $3.8 billion in the June quarter 2007. However, for the 2006-2007 financial year, the deficit on the balance on trade decreased by...

This fact mean that over the past years, Australia's exports have experienced a more significant growth compared to the country's imports.
The country's terms of trade index decreased 0.1%. This is not a usual situation for Australia, since this was the first terms of trade index decrease since December quarter 2001. Since the beginning of 1999, this index has ha an ascending evolution. However, this terms of trade index decrease was due to the exports prices and the imports prices decrease. Regarding net exports contribution to GDP, net exports detracted 1.4% points from GDP growth.

Conclusion

The global economy is experiencing a period of significant change in all aspects. This situation can be considered as a great opportunity for Australia to its successful economic performance that the country recently experienced. However, other situations of this kind that took place in the past revealed that Australia did not manage very well at taking advantage of these situations and exploiting them. In order to batter handle this beneficial period, it is recommended that the country's officials take into consideration the risks associated with this situation.

Reference List

Australia (2007). Central Intelligence Agency. The World Factbook. Retrieved December 7, 2007 from https://www.cia.gov/library/publications/the-world-factbook/geos/as.html#Econ.

Calleya, Peter (2007). The Australian and New Zealand Dollar. Times of Malta. Retrieved December 7, 2007 at http://www.timesofmalta.com/articles/view/20071111/business/the-australian-and-new-zealand-dollar.

Financial Stability Review (2007). Reserve Bank of Australia. Retrieved December 7, 2007 at http://www.rba.gov.au/PublicationsAndResearch/FinancialStabilityReview/index.html.

Stevens, Glenn (2007). Economic Conditions and Prospects. Address to the QUT Business Leaders' Forum Brisbane. Reserve Bank of Australia. Retrieved December 7, 2007 at http://www.rba.gov.au/Speeches/2007/sp_gov_140607.html.

Monthly Economic and Social Indicators (2007). Parliament of Australia. Parliamentary Library. Retrieved December 7, 2007 at http://www.aph.gov.au/library/pubs/mesi/.

OECD Economic Outlook No. 82 - Australia (2007). Organization for Economic Co-operation…