The Current State of the Economy of Australia

Running head: ANALYSIS OF AUSTRALIAN ECONOMY
ANALYSIS OF AUSTRALIAN ECONOMY
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ANALYSIS OF AUSTRALIAN ECONOMY1
Abstract
The main aim of the report is to prepare an article on the existing (August or September 2019)
condition of the economy of Australia and also to compare and contrast the performance with the
situation of the country over entire range of period from 2015 to 2019. The data of the years
2015, 2016, 2017, 2018 and 2019 are collected based on the macroeconomic indicators which
are Gross Domestic Product (GDP) representing Economic Growth, Unemployment Rate,
Inflation and Trade. For trade some indicators like Terms of Trade (TOT), Current Account, Net
Foreign Debt and Value of the Australian Dollar (AUD$) are brought under consideration. The
figures are plotted graphically, compared, examined and analyzed properly. After significant
evaluation of each and every economic indicators correctly, the trend exhibited by all the
indicators are identified. It is found that the Economic Growth of Australia has slowed down
over the period characterized by falling GDP. The Unemployment rate diminished with time but
the economy had been experiencing a rising trend in Inflation since the year 2015 even if there
has been a decline in the inflation rate around 2019. However a fluctuation in the rate of inflation
is identified across the analyzed time zone. In case of Trade, the TOT and Current Account of
Australia show a stiff rising trend across 2015 to 20219. The Net Foreign Debt of the nation has
rose while Value of the Australian dollar has diminished over time. Finally depending on the
analysis and interpretation, three primary issues that the nation Australia might experience in the
next 12 months are highlighted. It is found that due to the slowing down of economic growth
(fall in GDP), there is a tendency of rise in unemployment rate in the future which will reduce
the average income of the citizens because of the fall in production level. The business will
suffer and the entire market will be under pessimism. The rising inflation rate rise the probability
of strengthening the existing housing problem in Australia by reducing the purchasing power of

ANALYSIS OF AUSTRALIAN ECONOMY2
the consumers and distorting the spending-investment decision level. The rise in the Net Foreign
Debt and decline of value of Australian dollar will also cause a devastating effect on the
Australian economy. However, at the end, an appropriate conclusion is drawn, on the basis of the
whole examination and evaluation carried out on the macroeconomic indicators, which briefly
discusses the economy of Australia in 2015 comparative to the present year (2019) and the
observed major issues that the country will going to face in the upcoming 12 months.

ANALYSIS OF AUSTRALIAN ECONOMY3
Table of Contents
Introduction......................................................................................................................................3
Brief overview of current situation..................................................................................................3
Trend Analysis of Economic Indicators..........................................................................................3
Gross Domestic Product (GDP)...................................................................................................4
Unemployment Rate....................................................................................................................5
Inflation Rate...............................................................................................................................6
Trade............................................................................................................................................7
Terms of Trade (TOT).............................................................................................................7
Current Account.......................................................................................................................8
Net Foreign Debt.....................................................................................................................9
Value of Australian Dollar.......................................................................................................9
Three Major Issues facing the Australian Economy over the next 12 months..............................10
Conclusion.....................................................................................................................................11
References......................................................................................................................................12