Challenges Faced by Australian Economy in the Next 12 Months

ECONOMICS
ASSIGNMENT

1
Executive Summary
Global economy is facing many types of challenges and so is the case with Australia. In the
time when the management of economic indicators have become difficult it has become
essential for the government to make sure that they have policies to deal with the challenges
that is faced by the economy. In the past few years there had been political turmoil in
Australia and it is having impact on the trade and economy of the country. In this report there
is illustration of facts and figures related with economic in the past five years within Australia
and its comparison with the economic indicators in August and September 2019. Inflation
rates in Australia in the year 2015, 2016, 2017, 2018, and 2019 where it was 1.5%, 1.3%,
1.9% and 1.26%, 1.90% which shows that there is fluctuation in the inflation rate within the
nation. The unemployment rate has been 2015, 2016, 2017, 2018 and 2019 i.e. 6.04%, 5.72%,
5.58%, 5.29% and 4.79% respectively. The trend shows that it is decreasing constantly. The
GDP growth rates for 2015, 2016, 2017, 2018 and 2019 are 2.4%, 2.8%, 2.0%, 1.7% and
1.4% which is showing a decline. The current account for 2015, 2016, 2017, 2018 and 2019
are -22471, -14173, -6761, -15865 and -6541 which in the third quarter of 2019 and has come
into positive side. It was seen that most of the economic indicators is expected to perform
better in the third quadrant of the 2019 financial year. This report is going to discuss the
challenges that Australian economy will face in the next 12 months. It was found that
increasing household debt, trade war between China and US, as well as economic slowdown
in various parts of the world will have impact on the Australian economy.

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Contents
Introduction............................................................................................................... 1
Current state of Australian economy................................................................................. 1
Three major challenges that are faced by the Australian economy in the next 12 months................4
Conclusion................................................................................................................ 5
References................................................................................................................ 5