The Commonwealth of Australia is a country in the southern hemisphere comprising the mainland of the world's smallest continent, the major island of Tasmania, and numerous other islands in the Indian and Pacific Oceans. Australia has an enviable Western-style capitalist economy with a per capita GDP on par with the four dominant West European economies. The country's robust business and consumer confidence coinciding with high export prices for raw materials and agricultural products are fueling the economy. Australia's emphasis on reforms, low inflation, and growing ties with China are other key factors behind the economy's strength. After housing prices peaked in 2005, drought and strong import demand pushed the trade deficit up in recent years, although the trade balance later improved in 2006. The country was ranked third in the United Nations' 2007 Human Development Index and sixth in The Economist worldwide quality-of-life index 2005.