Britannica
Sources used in this answer
- Australia - Economy of Australia
- Australia - First and second waves of postwar immigration
- Australia - Postwar expansion
- Australia - The postwar years
- Australia - Manufacturing of Australia
- Australia - Trade
- Australia - International affairs
- Australia - Minerals and mining
- South Australia - Manufacturing
- Queensland - Resources and power
How did Australia’s economy change after World War II?
Created from Britannica articles
using AI.
AI can make mistakes, so verify using Britannica articles.
Following World War II, Australia’s economy underwent a significant transformation, shifting from a traditional reliance on agriculture—often described as "riding on the sheep’s back"—toward a more diversified structure driven by manufacturing, services, and a spectacular boom in mineral exploitation.1
Key changes included:
- Manufacturing Expansion: Domestic manufacturing grew remarkably, peaking at about one-third of GDP by 1959–60. This sector was bolstered by government intervention, including protective tariffs and the development of industries like automobiles (e.g., the Holden) and household appliances.23
- Postwar Immigration: Rapid economic growth and labor shortages were addressed through large-scale immigration programs. Migrants, including many from Europe, provided essential labor for public works projects, such as the Snowy Mountains Hydro-Electric Scheme, and the manufacturing sector.4
- Shift in Trade: Trading patterns moved away from the United Kingdom toward the Asia-Pacific region, with Japan becoming a vital partner for exports and imports.56
- Economic Philosophy: Over time, the economy moved toward globalization and deregulation, increasingly influenced by foreign investment and multinational corporations.1