Australia and New Zealand rely on raw material exports, have high standards of living, focus on service sectors, and face demographic challenges.
Australia and New Zealand have historically relied on exporting raw materials to drive their economies. Both countries have high standards of living due to their vast resources and small populations. They skipped the industrial phase of development, focusing on services, education, and tourism instead.
New Zealand's economy has shifted towards accommodating international market demands and developing industries like agricultural exports, industrial processes, and tourism. On the other hand, Australia has transitioned from agricultural production and mineral exports to a focus on tourism as a major source of wealth.
Both countries face challenges such as aging populations, declining population growth rates, and restrictive immigration policies. They must consider liberalizing their immigration stances to boost population growth and address economic issues related to the shrinking labor force and tax base.
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