So a 20–25 per cent gain equates to about 4–5 per cent of GDP – say, $ billion – in additional annual income that is available. Part of that income accrues to foreign investors who have ownership stakes in resources enterprises, but a substantial proportion remains for Australians as shareholders, employees and citizens (via government taxes).
There can be little doubt that this adds considerable buoyancy to the economy which would not otherwise be there. The first-round effect is clearest in the regions where resources have the greatest weight in economic activity. But there are still impacts around the rest of the country – for example, through the consumption of higher resource-derived incomes, and higher investment by the resource producers.