Australian Economy Analysis

AUSTRALIAN ECONOMY ANALYSIS 1
AUSTRALIAN ECONOMY
ANALYSIS
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AUSTRALIAN ECONOMY ANALYSIS 2
Australian Economy Analysis
Introduction
 Australia is among the rich nations not only in the Asia-Pacific region but
also in the whole world.
 Australia has been doing well in terms of economic performance which is
measured in terms of the gross domestic product.
 Even during the 2008-2009 financial crises in the whole world, Australia
was among the few nations which posted positive economic growth though
at a reduced rate as compared to the past years (Daley 2018, p.3).
 Australia has been able to maintain its good economic performance by
adopting sound micro and macroeconomic policies. Through these
economic policies, the government of Australia has been able to readily
avail highly skilled labor force for various businesses and it has also
opened up almost all its sectors to foreign competition.

AUSTRALIAN ECONOMY ANALYSIS 3
Australian GDP
 Gross domestic product (GDP) generally refers to the value of the final goods
and services which is measured in terms of money, produced in a given nation
over a certain period of time which is considered to be one year in most nations.
 Australian economic performance is measured by the rate at which its gross
domestic product grows over a certain period of time.
 Currently, Australia has a GDP of $1.2 trillion which represents economic growth
of 2.8 percent (Haig 2018, p.1).
 The economic growth rate of Australia has been averaging 0.85 percent since
the year 1959 up-to-date. The highest growth rate was recorded during the year
1976 when it was 4.40 percent. The lowest growth rate was recorded during the
year 1974 when it was -2 percent.

AUSTRALIAN ECONOMY ANALYSIS 4
Australian inflation rate
Generally, the inflation rate measures the rate at which the price of goods and
services generally increases over a given period of time in a given nation.
From the year 1951 up-to-date, the Australian inflation rate averaged 5.0
percent (Brouwer and Ericsson 2018, p.433). The highest inflation rate was
recorded during the year 1951 fourth quarter at 23.90 percent. The lowest
inflation rate was recorded during the year 1962 at -1.30 percent.
For the past ten years, since Australia recovered from the great 2008 – 2009
great recession, inflation rates have been averaging 2.0 percent.
Current inflation rate stands at 1.8 percent.