State of the Australian economy in terms of macroeconomic indicators

Running head: ECONOMICS
Economics
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ECONOMICS1
Abstract
The main purpose of the report is to analyze state of the Australian economy at present. State
of an economy is judged on the basis of some selected macroeconomic indicators. Economic
performance of Australia has been evaluated in four dimension. Current state of the economy
is analyzed in terms of the most recent recorded figures in economic growth, unemployment,
inflation and trade. For analyzing economic growth both nominal and real GDP growth
figures have been analyzed. State of labor market and price level has been examined using
the trend unemployment and inflation rate. The state of international trade has been assessed
using current account balance, terms of trade, net foreign debt and exchange rate trend. The
recorded figures in most recent period of 2019 are then compared for the period since 2015.
Findings of the report indicates that Australian economy is currently growing at a
slower pace. Decline in economic growth is attributed from a decline in consumption
spending, housing market slowdown, fall in investment in dwelling and others.
Unemployment continues to decline while inflation rate remain below the targeted level. In
the international market term of trade of Australia is improving, currency is depreciating
along with an improvement in current account balance.
Considering the current state of the economy, the report has found three major issues
that the economy is currently dealing with. The first problem is decline in the economic
growth with growth rate reaching to the two decades lowest level. The second issue is the
volatility in the housing market. The sudden downfall in housing prices has adversely
affected wealth level of household and investors’ confidence. The third challenge for the
economy is persistently weaker wage growth.

ECONOMICS2
Table of Contents
Introduction................................................................................................................................3
State of Australian economy at present......................................................................................3
Economic growth...................................................................................................................3
Unemployment.......................................................................................................................4
Inflation..................................................................................................................................5
Trade......................................................................................................................................6
Issues of concern for Australian economy.................................................................................8
Slow economic growth...........................................................................................................8
Volatility in housing market...................................................................................................8
Stagnant wage growth............................................................................................................9
Conclusion..................................................................................................................................9
References................................................................................................................................10

ECONOMICS3
Introduction
Evaluation of economic performance of a nation requires analysis of performance
trend of some crucial economic indicators. Economic state of a nation is determined from
growth of aggregate output, movement of the price level, state of employment and position in
the international market indicated from trade statistics of the nation (Sloman, Norris and
Garrett 2013). The report prepares a brief analysis of current state of Australian economy.
After finding performance trend in current year comparison has made over the period from
2015 to 2019 to understand economic progress of Australian economy. On the basis of
evaluation of current state of the Australian economy the paper highlights three major issues
concerning the economy.
State of Australian economy at present
Economic growth
Figure 1: Trend analysis of Real GDP growth
(Source: Abs.gov.au. 2019)