Australian power ranking rises
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Australia has risen to fifth place in the 2024 Asia Power Index, surpassing Russia as its influence in Asia falters.
According to the Lowy Institute's latest report, Australia is now ranked fifth out of 27 nations, with a power score of 31.9 out of 100.
The nation has been given an increase of 1.0 points from the previous year, equating to a three per cent improvement.
Although Australia’s rise in the rankings is largely due to Russia’s declining presence in the region, the report notes that Australia’s power remains stable.
The index evaluates the strength of countries across eight key indicators, including economic capability, military strength, diplomatic influence, and defence networks.
Australia’s strongest performance is in its defence networks, where it ranks second, despite some relative decline due to gains by Japan.
However, the analysts say future resources remain Australia's weakest point, ranking ninth, due to the projected smaller size of the country’s economy and workforce in the coming decades.
According to the report, Australia’s goal to become a significant supplier of materials for clean energy technologies has not yet been realised.
Australia's cultural influence saw the greatest increase in the Lowy rankings’ categories, with a 3.9-point gain, while resilience experienced the most significant decline, dropping by 3.7 points.
Australia also improved in diplomatic influence, economic relationships, and military capability.
Economically, Australia remains eighth in the region, with some improvement in economic relationships, especially as trade relations with China have normalised.
China remains Australia’s largest trading partner, accounting for 29.1 per cent of bilateral trade.
While Australia’s overall power remains stable, the index reflects that the country's influence in the region exceeds what its resources might suggest, leading to a positive ‘power gap’.
The report says Australia “exerts more influence in the region than expected given its available resources”, thanks to strategic decisions and international engagement.
The Lowy Institute's findings suggest that Australia’s role as a middle power remains secure for now, although it continues to face challenges in key areas such as resource security and demographic changes that could impact its future influence.
As Australia holds steady, the broader dynamics of Asia continue to shift.
The report reveals a “bipolar” power structure dominated by the United States and China, with India making gains to overtake Japan for the first time as the third most powerful country in the region.