Australia's Economic Challenges

Running head: ECONOMICS OF MANAGEMENT
Economics for Management
Name of the Student
Name of the University
Author note

1ECONOMICS OF MANAGEMENT
Executive summary
The objective of the paper is to analyze the current situation of Australia and to suggest further
recommendation for future growth of the country in the next six months. Australia is suffering
from a fall in its GDP, rise in its inflation rate, high unemployment and increasing population
pressure. This might have a negative effect on the growth of the country. Thus, it is necessary for
the government to take up contractionary monetary policy, tight fiscal policy and other measure
to control the negative effect and maintain their long term growth.

2ECONOMICS OF MANAGEMENT
Table of Contents
Introduction......................................................................................................................................3
Current State of Australian economy..............................................................................................3
Future Growth forecast for Australian economy.............................................................................8
Conclusion.......................................................................................................................................9
References......................................................................................................................................11

3ECONOMICS OF MANAGEMENT
Introduction
Australian economy is considered to be one of the most developed economies in the
world. It has a mixed market system in their economy where all types of market system are
present. It is also known as one of the wealthiest economy in the world with most of people
living above normal standard. It is also the 12th largest economy of the world according to its
GDP and 19th largest economy of the world measured by PPP. It is also known for exporting
maximum amount of goods to other countries. The major industry of the economy is the service
sector comprising about 71 percent of the total GDP. The currency in which exchange takes
place in Australia is Australian Dollars. However, this immensely developed country has gone
through a number of changes over the years in its GDP rate, employment rate, inflation and other
major economic variables. It has trade relations with Chile, China, Korea, and Malaysia and may
other countries.
The report will analyze the current performance of the Australian economy based on
various economic variables. It analyses the effect of these variables on the economy by
visualizing its trends over the years. Further, it will discuss about some the effect of the present
situation of the Australian economy on its future growth. The future forecast will be done on the
next six months.
Current State of Australian economy
Australian economy has been growing over the years on each ground such as GDP,
employment, export, import and other factors. It is a free market economy and as not been
effected by recession over the last 25 years. The country is also fully opened to foreign industries