This report intends to find the present economic situation of Australia with the help of some macroeconomic concepts. After that, a prediction can be done related to future performance of this country for the next 6 months. Moreover, a trend of cash rate movement of Australia’s central bank can also be discussed over here.
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Running head: BUSINESS REPORT ON AUSTRALIAN ECONOMIC CONDITION Business report on Australian economic condition Name of the student Name of the university Author Note
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1BUSINESS REPORT ON AUSTRALIAN ECONOMIC CONDITION Executive Summary: This report intends to find the present economic situation of Australia with the help of some macroeconomic concepts. After that, a prediction can be done related to future performance of this country for the next 6 months. Moreover, a trend of cash rate movement of Australia’s central bank can also be discussed over here.
2BUSINESS REPORT ON AUSTRALIAN ECONOMIC CONDITION Table of Contents Introduction:...............................................................................................................................3 Resent Australian situation based on Macroeconomic concept:................................................3 Economic performance in the next 6 months:............................................................................5 Future cash rate of the Australian central bank:.........................................................................6 Conclusion:................................................................................................................................6 References:.................................................................................................................................7
3BUSINESS REPORT ON AUSTRALIAN ECONOMIC CONDITION Introduction: The economic condition of Australia has remained highly developed along with its mixed economic structure. This report intends to describe about the present economic situation of this country in the light of macroeconomic variables, for instances, national income, consumption expenditure and investment expenditure (MacLachlan, Biggs, Roberts and Boruff 2017). After that, the report is going to forecast the economic performance of Australia for the next six months and based on this, the future trend of cash rate of the Reserve Bank of Australia can also be discussed. Resent Australian situation based on Macroeconomic concept: To understand the recent economic condition of Australia, three indices are needed to discuss, that are gross domestic product (GDP), price level and unemployment rate of Australia. The economic condition of this specified country can be understood through changing trend of GDP.
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4BUSINESS REPORT ON AUSTRALIAN ECONOMIC CONDITION Figure 1: GDP trend of Australia (2013-2018) Source: (tradingeconomics.com 2018) It can seen from the above figure that the GDP of Australia has fluctuated drastically over the last five years. This growth rate increased at a slower rate. Figure 2: Unemployment rate of Australia (2013-2018) Source: (tradingeconomics.com 2018) The unemployment rate of Australia has decreased significantly, which in turn has indicated a positive economic condition of this country. In 2017, this rate has remained at 5.7% though at the initial phase of 2018, this rate has increased by a small percentage (tradingeconomics.com 2018). Moreover, the retail price level has remained at a lower level and has decreased further in the second quarter of 2017. With the help of Keynesian model, the economic condition of Australia can be analyzed more precisely (Benigno 2015). This model has focused chiefly on four economic
5BUSINESS REPORT ON AUSTRALIAN ECONOMIC CONDITION indicators,whichareconsumptionexpenditure,governmentexpenditure,investment expenditure and net export. Figure 3: Personal consumer expenditure of Australia (2013-2018) Source: (tradingeconomics.com 2018) The above figure has represented an increasing trend of the country’s personal consumer expenditure after the present president of the U.S.A has come into power. This indicatesthatAustralia’seconomicconditionisachievingabetterposition (tradingeconomics.com 2018). In addition to this, the present condition of the country’s investment expenditure and government expenditure have experienced positive trend, which have affected the country’s economy in a positive way. However, the country’s net export has affected adversely due to unstable economic condition of the global economy. Economic performance in the next 6 months: Based on those macroeconomic variables, it can be predicted that the economic condition of Australia is going to increase in the next 6 months and at the end of 2018, it can be reached nearly at 3% (Johnson and Mitchell 2017). However, due to political and
6BUSINESS REPORT ON AUSTRALIAN ECONOMIC CONDITION economical instability, especially in China, the net export of Australia can be decreased further while the level of unemployment may remain at the same position. Future cash rate of the Australian central bank: The central bank Australia can implement expansionary fiscal policy to decrease the cash rate, which in turn can decrease the interest rate of banks in future (Makin, Robson and Ratnasiri 2017). Through this policy, the government can control the increasing inflation rate of Australia. Conclusion: After discussing all macroeconomic variables, it can be concluded that the GDP of Australia can be increased in next 6 months while the cash rate may be decreased during the same period. At present, the GDP of this country is increasing at a slower rate. Hence, by considering entire impacts, it can be said that the economic condition of Australia is attaining a stable position.
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