Australian Economy and Gdp Growth
Essay by rahulnaan100 • January 13, 2019 • Research Paper • 823 Words (4 Pages) • 695 Views
Australian Economy
Overview:
Following the 25 years of continuous economic growth, controlled inflation, low unemployment & public debt and with a strong & a stable financial system, Australian economy enters into 2018 with high hopes, but it faces numbers of growth constraints, probably due to fall in the prices of major export commodities. The global trade war, which stall the demand for natural resources and energy from the major Asian market, especially from China has also adversely impacted the economy.
The service sector is the major contributor to Australias GDP, according to the recent statistics it accounts for about 70% of GDP and 75% of the jobs. The Australian economy is relatively isolated from the rest of the world, this feature has acted as a blanket against the 2008, global financial crisis.
For the past couple of decades, the Australian economy has been enjoying the benefits from the rise in export, although this growth is now stagnated because of the ongoing global trade war. Australia is a major exporter of natural resources, food and energy. Australia’s abundant natural resources which include coal, copper, natural gas, gold & uranium attracts a large amount of foreign investment.
Australia’s open market policy has increased its productivity, stimulated growth, and made their economy flexible and dynamic. Australia is an active member of major trade forums like WTO, APEC, G20 etc.. China is the major partner of Australia in terms of investment and trade. Last year, Australias annual exports to China increased by 22% to US$78.6bn which is 1/3rd of its total export, while the imports surged by 8% to US$50.5bn.. In 2015, Australia sign a free trade agreement with China. https://gbtimes.com/china-australia-trade-hits-record-high-in-2017 along with this Australia sign the FTA with South Korea, Chile, New Zealand, Malaysia, Japan, US and also a regional agreement with ASEAN. Australia has also negotiated a bilateral agreement with India. https://www.indexmundi.com/australia/economy_overview.html
Statics
Rank | 20(PPP), 13(GDP) (Source: IMF, 2018) |
Currency | Australian Dollar |
Fiscal year | 1 July to 30 June |
Trade organisations | APEC, G20, OECD, WTO |
Population below poverty line | 13.2% (2018) https://www.acoss.org.au/poverty/ |
Gini coefficient | .337(2014) |
Labour force | 12,910,680 |
Labour force by occupation | Agriculture- 2.6% Mining- 1.8% Manufacturing- 7.4% Construction- 9.4% Service- 78.8% |
Unemployment Rank in the world | 5% |
Ease of doing bussiness Rank | 14th |
SOME STATISTICS
OEDC Membership:
Australia gets the OECD (Organization for Economic Co-operation and Development) membership in June 1971 which gives the Australian economy a global recognition.
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