Aboriginal settlers arrived on the continent from Southeast Asia about 40,000 years before the first Europeans began exploration in the 17th century. No formal territorial claims were made until 1770, when Capt. James COOK took possession in the name of Great Britain. Six colonies were created in the late 18th and 19th centuries; they federated and became the Commonwealth of Australia in 1901. The new country took advantage of its natural resources to rapidly develop agricultural and manufacturing industries and to make a major contribution to the British effort in World Wars I and II. In recent decades, Australia has transformed itself into an internationally competitive, advanced market economy. It boasted one of the OECD's fastest growing economies during the 1990s, a performance due in large part to economic reforms adopted in the 1980s. Long-term concerns include pollution, particularly depletion of the ozone layer, and management and conservation of coastal areas, especially the Great Barrier Reef.

Geography

Location: Oceania, continent between the Indian Ocean and the South Pacific Ocean

Geographic coordinates: 27 00 S, 133 00 E

Area: total: 7,686,850 sq km; land: 7,617,930 sq km; water: 68,920 sq km (note: includes Lord Howe Island and Macquarie Island)

Coastline: 25,760 km

Climate: generally arid to semiarid; temperate in south and east; tropical in north

Terrain: mostly low plateau with deserts; fertile plain in southeast

Elevation extremes: lowest point: Lake Eyre -15 m; highest point: Mount Kosciuszko 2,229 m

Natural resources: bauxite, coal, iron ore, copper, tin, gold, silver, uranium, nickel, tungsten, mineral sands, lead, zinc, diamonds, natural gas, petroleum

Natural hazards: cyclones along the coast; severe droughts; forest fires

People

Population: 20,434,176 (July 2007 est.)

Net migration rate: 3.78 migrant(s)/1,000 population (2007 est.)

Life expectancy at birth: total population: 80.62 years; male: 77.75 years; female: 83.63 years (2007 est.)

Ethnic groups: white 92%, Asian 7%, aboriginal and other 1%

Religions: Catholic 26.4%, Anglican 20.5%, other Christian 20.5%, Buddhist 1.9%, Muslim 1.5%, other 1.2%, unspecified 12.7%, none 15.3% (2001 Census)

Languages: English 79.1%, Chinese 2.1%, Italian 1.9%, other 11.1%, unspecified 5.8% (2001 Census)

Government

Government type: federal parliamentary democracy

Capital: Canberra

Administrative divisions: 6 states and 2 territories*; Australian Capital Territory*, New South Wales, Northern Territory*, Queensland, South Australia, Tasmania, Victoria, Western Australia

Dependent areas: Ashmore and Cartier Islands, Christmas Island, Cocos (Keeling) Islands, Coral Sea Islands, Heard Island and McDonald Islands, Norfolk Island, Macquarie Island

Legal system: based on English common law; accepts compulsory ICJ jurisdiction, with reservations

Suffrage: 18 years of age; universal and compulsory

Executive branch: chief of state: Queen of Australia ELIZABETH II (since 6 February 1952); represented by Governor General Maj. Gen. (Ret.) Michael JEFFERY (since 11 August 2003); head of government: Prime Minister John Winston HOWARD (since 11 March 1996); Deputy Prime Minister Mark VAILE (since 6 July 2005)

Economy

Economy - overview: Australia has an enviable Western-style capitalist economy with a per capita GDP on par with the four dominant West European economies. Robust business and consumer confidence and high export prices for raw materials and agricultural products are fueling the economy. Australia's emphasis on reforms, low inflation, and growing ties with China are other key factors behind the economy's strength. Drought and strong import demand pushed the trade deficit up in recent years, although the trade balance improved in 2006. Housing prices probably peaked in 2005, diminishing the prospect that interest rates would be raised to prevent a speculative bubble. Conservative fiscal policies have kept Australia's budget in surplus since 2002.

Labor force - by occupation: agriculture: 3.6%; industry: 21.2%; services: 75.2% (2004 est.)

Unemployment rate: 4.9% (2006 est.)

information courtesy The World Factbook August 2007