Australian Economic Performance: GDP, Unemployment, Inflation and Trade

Running Head: AUSTRALIAN ECONOMIC PERFORMANCE 1
AUSTRALIAN ECONOMIC PERFORMANCE
Name
Institutional Affiliation

AUSTRALIAN ECONOMIC PERFORMANCE 2
Executive Summary
This objective of preparing this report is to determine the factors that affect the
economic performance of Australia and determine the factors that may affect the
economy of the country in the short term. The report uses data collected between
August 2017 and August 2018 to generate information needed in this report. The
economic performance of Australia is analyzed based on the following four factors;
Economic growth, unemployment, inflation, and trade. The GDP of Australia grew
3.3% by August 2018. Comparing with the same period last year, the GDP of
Australia grew by 0.6%. Between September 2017 and August 2018, household
consumption increased by 3% while government consumption increased by 5.1% over
the year. In August 2018, unemployment in Australia stood at 5.3%. This was the
lowest rate of unemployment in over two years. Between the month of July and
August 2018, employment increased by 26,900 to 12,581,600. Unemployment over
this period of time decreased from 1,300 to 713,000. According to data from the
Australian Bureau of Statistics, consumer price inflation rose to 2.1 % throughout the
year 2018. Between October and December 2017, inflation increased by 1.9%. This
means that consumer price increased by 0.4% every quarter. The issues that may
affect the economy of Australia include; the value of the Australian dollar, Interest
rates, and unemployment.

AUSTRALIAN ECONOMIC PERFORMANCE 3
Introduction
The purpose of this report is to analyze and compare the difference between
Australia`s economic growth in the year 2017 with the growth in 2018. The report
uses the four indicators of economic growth; namely growth in GDP, unemployment
rate, inflation and trade (McLean, 2013). Data concerning the four aspects of
economic growth is collected and analyzed with the aim of predicting the
performance of the Australian economy over the next twelve months. The current
performance of the economy is compared with the performance of the economy in the
year 2017. The body of the report also describes three major issues that are likely to
face the economy of Australia in the next one year. The final section of the report is a
summary of the issues that have been discussed in the body of the report.
Economic growth
The GDP of Australia grew 3.3% by August 2018. This has surpassed
expectations and it's more than 0.4% higher than what was forecast one year ago. This
means that this is the fastest annual growth rate since September 2012. The economy
grew 0.9% higher than it was expected in the previous quarter. The main contributor
to the growth in GDP id the household sector. The sector has been previously
struggling under low growth in wage and falling house prices. This sector accounted
for 0.4 percent growth. Residential construction accounted for 0.2% growth while
domestic consumption increased by 0.5 %. Comparing with the same period last year,
the GDP of Australia grew by 0.6%. Between September 2017 and August 2018,
household consumption increased by 3% while government consumption increased by
5.1% over the year. This growth can be attributed to big infrastructural projects