Analysis of GDP, Economic Growth and Consumption Expenditure of Australia

Introduction:
Economic growth represents increase in market value of products of an economy after
adjusting inflation over a long period. This growth can be obtained through measuring the
percentage rate of increase of real GDP of the country. Hence, to analyse economic growth of
Australia, it is essential to measure real gross domestic product (GDP) of this specified
country as it can help to evaluate the performance of this country’s economy. The GDP
shows economic performance of the country for a long period, which can be a year or quarter.
Hence, this GDP can be considered as one of the most important indicators for evaluating
economy o a country. Australia has highly developed economy along with a mixed market. In
2017, the gross domestic product of this country has remained AUD$ 1.69 trillion. The
country has maintained a longest run of uninterrupted GDP growth among all developed
countries across the world. The specified country has three chief economical sectors, viz.,
primary or agriculture, secondary or manufacturing and service sector. Each of these three
sectors contribute significant portion to the national income of Australia though the most
important and dominating sector is service sector. This is because the specified sector has
contributed 61.1% to the country’s total GDP and has employed almost 79.2% people of its
total labour force in 2016.
Thus, this report has intended to see GDP and economic growth of Australia for the
last 5 years. Moreover, based on this discussion, the report can analyse Australian
government policy and can also indentify that which sector has contributed more.
Real GDP growth rate of Australia:
The real economic growth rate represents economic growth of Australia in relation to
gross domestic product (GDP) over the period through adjusting inflation. A statistical
diagram with data for the last 5 years can express the real GDP growth of Australia more
precisely.

Figure 1: GDP growth rate of Australia for the since 2013
Source: (Tradingeconomics.com 2018)
Figure 1 has represented GDP growth rate of Australia for the last five years.
According to this diagram, the growth rate has declined significantly and has become
negative within 2016-2017, due to related economical shock like fall in investment in mining
sector and weak wage rate growth of this country. During this situation, positive contributing
to the country’s GDP has come from final consumption expenditure while net trade and non-
dwelling construction has decreased over time. Decreasing net export means, increasing
production of agricultural goods and its export has helped the country’s economy to recover
its condition again while exports of manifesting sectors have decreased. however, this GDP
growth has reached at a stable position in 2018. The above trend has shown that the GDP
growth of this country has experienced various fluctuations over the year. However, instead
of this drastic fluctuation, the country has successfully maintained its economic stability in
the international market. Moreover, the county has recovered its GDP from the negative
segment and in recent year, this growth rate has become 0.4%. This GDP growth has
influenced employment of this country as well.