Economy of Australia: Analysis of Macroeconomic Indicators and Future Issues

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ASSIGNMENT OF ECONOMICS
AUSTRALIA

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Executive summary
The paper aims to study the economy of Australia by analysing the performance of the
economy in different macroeconomic indicators. The paper uses the secondary data collected
from the websites and government portals. The paper has found out that, in most of the
economic indicator the performance of the Australian economy is not up to the mark and
hence some issues can be faced by the economy in the coming months.

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Contents
1.0 Introduction..........................................................................................................................4
2.0 Analysis................................................................................................................................4
2.1The economic indicators and the state of the Australian economy.......................................4
2.1.1 GDP growth rate...............................................................................................................4
2.1.2 Unemployment rate...........................................................................................................5
2.1.3 Inflation rate......................................................................................................................6
2.1.4 Terms of trade...................................................................................................................6
2.1.5 Current account.................................................................................................................7
2.1.6 Net Foreign Debt...............................................................................................................8
2.1.7 The exchange rate of Australian Dollar............................................................................9
2.2 Three issues facing the economy in the next 12 months....................................................10
3.0 Conclusion..........................................................................................................................11
Reference..................................................................................................................................12

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1.0 Introduction
The Australian economy is one of the largest mixed economies of the world with GDP
amounting to 1.69 Trillion USD. Another important feature of the Australian economy is the
per capita wealth which puts this country in the second spot in the list. However, due to
global events such as the trade war between China and the USA, the economy of Australia
has been showing signs of a downturn. Economists are concerned about the future of the
economy and looking for ways to deal with the problem. The objective of the paper is to
study different macroeconomic indicators related to Australia. This study can be a useful
source of information for economists and the government for undertaking new policies for
the betterment of the economy.
2.0 Analysis
2.1The economic indicators and the state of the Australian economy
2.1.1 GDP growth rate
The government and the central bank of Australia had set a goal to maintain an economic
growth rate of 3% since the year 2015. Compared to the state of the economy in the last 5
years, the economy of Australia is currently under pressure due to the poor performance in
the GDP growth rate indicator. The figure below furnishes the GDP growth rate of the
Australian economy.
Figure 1: The GDP growth rate of Australia
2015 2016 2017 2018 2019 Aug-19
2.34
2.85
2.34
2.83
0.28
0.8
Australia's GDP growth rate
Annual GDP growth rate