Economic Growth | Business Economics

BUSINESS ECONOMICS

Contents
Introduction............................................................................................................... 3
GDP growth rate of China and Australia............................................................................3
Social and economic welfare.......................................................................................... 5
Comparison of living standard and economic growth in China and Australia...............................6
Contribution of living standard and economic growth on economy...........................................8
Conclusion and recommendation..................................................................................... 9
References.............................................................................................................. 11

Introduction
Economic growth is well-defined as upsurge in productive ability of country, which means
increase in national income and output. The essay brings out a discussion and analysis on
economic trend of China and Australia. The essay elaborates the performance of China and
Australia in terms of economic growth and living standards. It has been extended to living
standards of people living in China and Australia and relating it to the economic growth. The
essay will use economic indicators to analyse the economic conditions such as unemployment
rate, GDP, human development index, disposable income and inflation rate. The essay will
undertake in-depth analysis of both the nations by showing the implications of living
standards and economic growth.
Currently, China is one of the fastest growing economy with the growth rate of 6 percent for
the last six years. In 2019, China`s GDP (Gross domestic product) was estimated at $14.3
trillion. Australia is the world`s 14th biggest economy with the GDP growth rate of 2.7
percent. Australia has been featured by diverse technology and services with low government
debt. Nominal GDP is $1.5 trillion in 2019 and it has entered amongst uninterrupted annual
growth in the economy (Australian Trade and Investment Commission, 2019).
GDP growth rate of China and Australia
GDP measures the country`s economic activity, which should not consider measure of
nation`s wellbeing. It is necessary to remain aware of how GDP components can lead
towards economic growth (Numeo, 2019). Australia has been continuously enjoying high
performance same as the developed economies after the boom of mining sector since 2000s.
Australia is the 14th largest economy and the nation has grown healthy pace by maintaining
low unemployment level, robust exports, low public debt, stable financial system, and strong
service industry (ADB, Furceri, and IMF, 2016). As far as different sectors are concerned,

agriculture, industry, contributes to four to 26 percent. Australia has been expecting annual
GDP development of 2.7 percent from 2019 to 2023 (Australian Trade and Investment
Commission, 2019). The economy maintains robustness as sustained by the social
frameworks, attractive investment, and deep trade relationship with Asian region.
(Source: Australian Trade and Investment Commission, 2019)
On the other hand, China has practiced high growth rate for the last few years by breaking
barriers of centrally planned as closed economy to highlight industrial and exporting centre of
global. In 1980, China was seventh biggest economy as it had GDP of $ 305.35 billion. China
is considered as Asia`s giant while averaging economic growth of 10 percent. The major
contributor of China`s economy is innovation as a priority for economic planning with
amount of high profile edges with a proverb “Made in China 2025”.