In land area, Australia is the sixth largest nation after Russia, Canada, China, the United States of America and Brazil. It has, however, a relatively small population of 18.95 million people (30 June 1999).

Australia is the only nation to govern an entire continent and its outlying islands. The mainland is the largest island and the smallest, flattest continent on Earth. (The highest point on the mainland, Mount Kosciuszko, is only 2228 metres.) Australia lies between 10 degrees and 39 degrees South latitude.

The Australian federation, the centenary of which it is celebrating this year, consists of six States and two Territories. The largest State, Western Australia, is about the same size as Western Europe.

Australia is a multicultural society and its population includes its indigenous peoples and settlers from countries all around the world. Immigration is an important feature of Australian society. Since 1945, almost 5.5 million people have come to Australia as new settlers. People born overseas and their children make up about two-fifths of the total population.

In economic terms, Australia has been one of the most outstanding nations in the world in recent years. As a high-growth, low-inflation, low interest rate country, it is more vibrant than ever before. (Real GDP increased by 4.4 per cent in 1999 following a growth of 5.2 per cent in 1998.) There is an efficient government sector, a flexible labour market and a very competitive business sector.

As a world trader, Australia has enjoyed strong comparative advantages in the mining and agricultural sectors for more than a century. It is now developing new strengths as an international supplier of advanced goods and services. For the past five years Australian exports of goods and services have averaged seven per cent growth. Exports of goods and services account for 19 per cent of GDP, compared with around 15 per cent in the mid-1980s. This reflects diversification of exports and a shift to leading-edge manufacturing and services.

Employment grew by 2.9 per cent in 1999, with the unemployment rate continuing to fall and reaching 7.0 per cent by December 1999.