Australian Economic & GDP Growth

Running head: AUSTRALIAN ECONOMIC & GDP GROWTH 1
AUSTRALIAN ECONOMIC & GDP GROWTH
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The following Gross Domestic Product analysis and economic growth is shown below
over the last five years under various industries in Australia. Australian economy is among the
fastest growing economy globally compared to other nations (Burdack, 2014, p. 133). By the
year 2016 and over the last five years, the growth rate of Australian economy continued to show
an improvement annually (Perth, 2012, p. 214). The increase and development in Australian
industries was propelled by a number of reforms. The reforms included modifications in taxation
and government, labor market, and having the worst broadband speed and capacity in the
developed world which is termed as a boost or role model in the digital disruption era.
The following context regards to the economic growth of Australia.
Economy refers to the system by which goods and services are produced, bought and sold
in a region (Junankar, 2016, p. 54). Australian economy comprises of several industries such as
agriculture, forestry, fishing, mining, media, tourism, telecommunication, transportation and
service industries. The Australian economy is characterized as a ‘two-speed economy’. Between
the year 2010 and 2013, much of the Australian economic growth was accredited to regions of
the nation where mining industries were mostly located. In addition, during 2012 and 2013,
Australian Capital Territory comprised of Tasmania, New South Wales, South Australia,
Queensland and Victoria. All the regions experienced a recession at different times.
Despite of problems such as high taxation, unnecessary government involvement,
increased domestic debt levels and huge administrations shortages, Australian economy has
increased dramatically (James, 2016, p. 56). In the year of 2016, agriculture industry contributed
about 2.61 percent of Australian Gross Domestic Product. Nevertheless, the Australian economy
advanced 0.4 percent in December last year, 2017, which was seen to be less than the market
consensus of the previous quarter which was slightly high as it was seen at 0.6 percent (Murphy,

AUSTRALIAN ECONOMIC & GDP GROWTH 3
et al., 2010). Economy analyst staged that this was the weakest progression rate since a
retrenchment in the year before, 2016, which saw an upwardly reviewed 0.7 percent progress in
the previous section.
The tourism sector, in the financial year 2010-2011, it represented a 2.5 percent of the
Australian gross domestic product. Local tourism is an important part of the tourism industry.
The 2010-11 financial year saw a massive number of tourist touring the Australian tourist
attraction sites hence contributing to the national gross domestic product. Also, it is in this
financial year where there were increased job opportunities. Many of the Australian residents
were employed by the sector, hence contributing to the Australian economy and also towards the
gross domestic product.
Australia’s per-capita GDP is considered to be much higher than that of other nations
such as Canada, United Kingdom and France in terms of purchasing power parity (PPP). The
stress on exporting goods and services rather than manufacturing the same fortified a significant
improvement in trade. On the other hand, many of the Australian operating companies are
foreign-owned (Dalal-Clayton, 2014, p. 212). This is due to a colonial heritage of these
companies. Therefore, as a result of these foreign owned companies, Australia has had recurring
current account arrears over a long period of time. The persistence current account shortages
occur despite phases of positive net commodities exports. However, given the net income
expense between the rest of the world and Australia, the results are always negative. In 2016, the
deficit amounted to a 2.6 percent of the gross domestic product (Sherraden, et al., 2015, p. 179).
Also, inflation has usually been between two to three percent. Nevertheless, somewhat in
response to the end of the mining flourishing, the cash rate has lately been continuously falling.

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A drop of 4.75 percent in the month of October 2011 was experienced to a significant 1.5 percent
in August 2016
Ever since the mid-2000s there has existed development in both the worth of cropping and
livestock trades. Cropping exports varies with periodic conditions that affect manufacture hence
wheat remains the main crop traded in value terms. Also in recent years tree nuts and fruits
exportation has developed strongly. Chickpea exports, reasonably small crop in Australia, its
exportation is estimated to double in worth in terms in 2015 to 2016 (Perth, 2012, p. 32). An
instance of how revenue growth and better trade sincerity in the Asian section have contributed
considerably to growth in trade is Australian’s cherry industry. Market entrance was enhanced
for cherries to the republic of Korea subsequent a reduction in assessments rates in January 2015.
Market entrance to Thailand for a variety of fruits including cherries improved in December
2015 (James, 2016, p. 76). Whereas a relatively small business, cherry trade improved to 48
million USD in 2014-2015, thus up from 13 million USD in 2010-2011.
Australia is among the major exporter of agricultural commodities since it is rich in
natural resources. Particularly, exported agricultural products comprises of wool and wheat. The
other exported commodities are minerals such as gold, iron ore and energy. Usually, the energy
is exported in the state of liquefied natural gas and coal. Though natural resources and
agricultural respectively constitute only five percent and three percent of the gross domestic
product. Therefore, agriculture and natural resources contribute significantly to Australia’s
export configuration. Besides, Australia’s biggest export market comprises of nations such as
China, Japan, US, South Korea and India (Garnaut & Song , 2012, p. 178). Recently, Australia
has incurred a significant mining flourish. The growth of mining sector greatly contributes to the