Australia's economy is at full capacity.

Australian unemployment is at a 32 year low. In February 2007, the index of leading economic indicators had an annualized growth rate of 5.7 percent. The Chief Economist of the Westpac-Melbourne Institute, the organization that compiles the index, said, "The Index continues to point to an acceleration in economic growth over the next 39 months." The sources for these facts are: Agence France-Press (AFP), and The Australian (Sydney), April 18, 2007 and April 26, 2007 respectively.

"Stable interest rates may spur consumer spending and a home building recovery, stoking the economy's 16-year expansion," according to a May 1, 2007 Bloomberg News wire story.

As if this were not enough to convince anyone that Australia's economy is strong and growing stronger, a separate story from The Australian on May 4, 2007, said that car sales achieved a record in the first quarter 2007, and then April 2007 saw car sales grow an additional 10 percent. Australian car sales are on track to reach a million units by the end of 2007 for the first time ever. The Australian cited a spokesperson for the country's automotive trade association for the prediction.

Car sales are often cited by economists as an indicator of future economic growth.

In spite of all the very strong signs of economic expansion, during its May 1, 2007, the Reserve Bank of Australia (RBA) decided to leave its key interest rate unchanged-as opposed to raising the rate to head off evident inflationary pressures. The rationale for keeping rates unchanged is that Australian inflation is low: The RBA thinks the rate of inflation for all of 2007 will be 2.75 percent.

This is obviously good news for the country's consumers who are likely to spend more in keeping with higher wages due to the nearly full employment situation. It is also good news for Australian consumers who want to buy a new home because mortgage rates will remain low.

However, the inflationary situation could change, and at that point the RBA will be forced to raise interest rates. The RBA's governor acknowledged as much in a recent statement. In the meantime, undoubtedly the uncertainty of the global slowdown will stay the RBA's hand.

STRONG EMPLOYMENT AND RISING WAGES ADD TO AUSTRALIA'S EXPANSION

The population growth rate for Australia is below the regional average, due in part to a birth rate of 13 per thousand inhabitants, which is lower than the average of 17 per thousand for Oceania. Job creation has kept up with growth of the labor force in recent years, and it is likely that the situation will improve further in 2007. Unemployment is running about 4.5 percent, an historic low, and this continues to buoy consumer confidence.

Australia's population reached 21-million people mid-2006, which amounted to just over 60 percent of Oceania's 34-million inhabitants. According to data released by the Population Reference Bureau (PRB), Australia's population will reach 25-million by 2025. Also, according to that source, Australia is going to have a population of 28-million people in 2050.

The PRB revealed that a high 91 percent of Australia's population lived in urban areas during 2006, and that the country's population density is a very low 7 people per square mile. Australia is roughly 90 percent the size of Brazil in land area, but Brazil has close to nine times as may residents.

The CIA's World Factbook, indicates that 19 percent of Australia's population was birth to 14 years old in 2006, while 68 percent was 15 to 64 years old, and 13 percent of the populace was 65 years of age and over.

CIA statistics revealed that the country's population growth rate was 0.82 percent in 2006. According to the United Nations Population Division, in the year 2050, 18 percent of Australia's population will be birth to 14 years old, while 54 percent will be aged 15 to 59, and 28 percent of the populace will be 60 years of age and over.