Australian Economic Growth

1Australian economic growth
Running head: AUSTRALIAN ECONOMIC GROWTH
Australian economic growth
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2Australian economic growth
Abstract
Economic growth and sustainability are function of different economic aspects, including
internal economic conditions and external events. The Australian economy could effectively
maintain its sustainability and overcome the drawbacks of the Global Financial Crisis (GFC).
Despite of the China's economic slowdown, and the end of the mining boom, the Australian
growth rate accounts for 3% per year.

3Australian economic growth
Part1: Australian growth rates over 10 years
The GDP is considered the main measurement of economic performance. The growth
rate of the GDP could be used to monitor the economic performance of Australia over the last
decade. The business cycle of the Australian economy passed through five phases that represent
the economic situations. Firstly: the expansion phase, as the GDP level rises in a fast way
recording (3-3.5) % per year. This phase is associated with high level of spending and low
unemployment rates. Secondly: the boom phase, where the GDP reaches its maximum level and
the rate of growth starts to ease. Inflation rates rise rapidly, and unemployment rates are
decreasing to the lowest levels. Between the years (2006-2008) the Australian economy
witnessed its boom, then it started to ease between 2010 and 2011. Thirdly: the slowdown phase,
where the growth rates start to grow slowly as a result of low national spending, rising
unemployment rates, and low inflation rates. Fourthly: the recession phase, which occurs as a
result of low production and represent six months of recession. The Australian economy
witnessed the recession in 2008 and 2009, which resulted in high levels of unemployment rates,
and low inflation rates. Fifth: the domestic economic stability phase, which represents the ideal
position of the economy, where the national spending and the growth rate are not increasing or
decreasing rapidly. The Australian economy seeks to achieve sustainability by creating (3-3.5) %
annual growth rates.
The figure (1) shows that the Australian economy witnessed the cyclical economic
performance between 2002/2003 and 2013/2014 (The World Bank Group, 2017). During
(2009-2012) the economy witnessed a strong recovery after the global financial crisis. Followed
by a slow in the growth rate during (2012-2013) which resulted in high unemployment rates. The
slow is followed by high and sustainable growth rate of 3% per year (Wong, 2016). In 2016,