ECON1005 - Assignment On The Australian Economy

Running Head: AUSTRALIAN ECONOMY 1
AN ANALYSIS OF THE AUSTRALIAN ECONOMY
Student’s Name
Course
Professor’s Name
University
(City) State
Date

AUSTRALIAN ECONOMY 2
An Analysis of the Australian Economy
The Australian economy is one of the major economies of the world. Today, the country
boasts a long period of impressive economic progress. Remarkably, it has enjoyed considerable
success over the past few years, something that is reflected in the fact that it has not experienced
recession for over 26 years. In addition, the living standards of its populace are generally high.
What is more, the economy has been experiencing sustainable growth as reflected in its GDP
data. Despite its remarkable performance, the economy suffers from high rates of unemployment
and inflation. Regardless, the Australian economy is a robust economy with great prospects for
growth.
Output Analysis
Graph showing Australia’s Gross Domestic Product
Source: (Trading Economics, 2017).

AUSTRALIAN ECONOMY 3
It is important to note that the Australian economy has been exhibiting a consistent
increase in its Gross Domestic Product over the last ten years. While some periods have been
characterized by increases in its GDP, other periods have seen decreases in the same. In 2007,
the GDP was recorded at 853.76 (Trading Economics, 2017).In the following year, the country
experienced growth and the GDP was estimated at 1055.33 (Trading Economics, 2017).
Afterward, in 2009, the GDP level dropped slightly to 927.17 (Trading Economics, 2017). In
2010, the GDP rose sharply by 215.71. Remarkably, the subsequent years saw a consistent rise in
the GDP level from 1390.56 in 2011 to 1538.19 in 2012, and 1567.18 in 2013. Unfortunately, the
trend broke in 2014 when the GDP level dropped sharply to 1459.6 (Trading Economics, 2017).
The following years experienced further decreases in the country’s GDP. In 2015, the GDP was
estimated at 1345.38. Last year, the value fell to 1204.62 in 2016 (Trading Economics, 2017).
Graph showing Australia’s GDP Per Capita
Source: (Trading Economics, 2017).

AUSTRALIAN ECONOMY 4
Despite the fluctuations in the estimated GDP in the Australian economy, the country’s
GDP per capita has been rising consistently over the past ten years. As at 2007, the per capita
income was recorded at 50952.5. In the year that followed, the value rose slightly to 51788.4 but
then dropped to 51651.2 in 2009(Trading Economics, 2017). The figures picked up in 2010 and
were estimated at 51874.1. After this period, the per capita income rose over and over again
between 2012 and 2016. As at 2012, the GDP per capita was 53348.4 before rising to 53798.4 in
2013. In 2014, the value rose further to 54394.3 before increasing again in 2015 to 54941.9
(Trading Economics, 2017). Last year, the GDP per capita further grew to 55670.9 (Trading
Economics, 2017).
It is imperative to note that both the GDP and the GDP per capita of Australia have been
increasing over the past decade. Markedly, this trend reflects a pattern of increasing economic
growth in the country (Focus Economics, 2017). Over the ten year period, the highest GDP per
capita was achieved last year, while the lowest per capita was recorded in 2007 (Trading
Economics, 2017). Given the tendency of growth in the country, the economy is expected to
experience further growth in the near future.
Labor Market Analysis
Although the Australian economy has been experiencing sustained growth for a long
time, the country suffers from high unemployment. Fundamentally, the country suffers from high
youth unemployment and long term unemployment. Today, the most common forms of
joblessness in the country include structural, cyclical, and frictional unemployment. The high
rate of joblessness in Australia is a major problem in the country and has significantly affected
the rate of economic growth.