Economic Growth and Policy Framework of Australia (2012-2017)

Running head: ECONOMICS ASSIGNMENT
Economics Assignment
Name of the Student
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Executive Summary
The economy of Australia has developed over the years and has eventually emerged
as one of the most influential economies in the global scenario. The economy of the country
has been known for its stability and robust performances in all the growth indicators over the
years, which also include the last five years, where the parameters of economic growth have
shown mixed responses. The policy framework of the government of Australia can be
considered to be one of the primary contributors to the economic growth, development and
overall stability of the country, especially at the times of internal as well as external turmoil
in the economic scenario. The industrial aspects of the country have also been experiencing a
primary shift from manufacturing to service sector expansions and a movement from low
skilled labour-intensive jobs to creation of more skilled and capital-intensive jobs and
businesses with the increasing innovations in technologies and increased capital investment
dynamics in the country in the last five years.

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Table of Contents
Introduction................................................................................................................................3
Economic growth of Australia...................................................................................................4
Economic Growth Trends of Australia (2012-2017).............................................................4
GDP (Different variants) and GDP Growth Rate in Australia (2012-2017)......................5
Inflation rate in Australia (2012-2017)..............................................................................9
Consumption Expenditures (2012-2017) in Australia.....................................................10
Unemployment Rate (2012-2017) in Australia................................................................11
Economic Policy Framework of Australian Government........................................................12
Growth of Industries in Australia (2012-2017)........................................................................15
Reasons for growth of service sector industry in Australia.................................................17
Conclusion................................................................................................................................17
References................................................................................................................................19

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Introduction
The global economy has developed considerably over the years, experiencing
immense dynamics and fluctuations (both negative as well as positive) in its framework,
which in turn has led to the creation of the current shape of the global economy. However,
there has been always the existence of several significant economies in the global scenario,
which have, over the years developed significantly, thereby emerging as the dominant players
in the global economic scenario, with huge influences and decision-making power in the
aspects of the global economic dynamics (Uribe and Schmitt-Grohé 2017).
One of such globally dominating and influencing economies, which have developed
significantly over the years is that of the economy of Australia. Australia enjoys the position
of one of the leading developed countries across the globe, with a highly developed,
dominant and the largest mixed economy in the international framework. Australia also ranks
as the fourth largest economy in the world in terms of Nominal GDP, with wealth of nearly
8.9 trillion AUD (2016) (Downes, Hanslow and Tulip 2014). The country also ranks second
globally, in terms of the amount of wealth of the adult population, ranking just after
Switzerland. The economy of the country also stands out for its incredible stability, as well as
for its economic prosperity, which can be attributed to the growth of industrial and
commercial sectors of the country over the years.
However, in the contemporary period, the economy of Australia has been subjected to
considerable fluctuations in its growth parameters, both positive as well as negative, much of
which can be attributed to the dynamics in the industrial and commercial sectors and the
several booms as well as stagnation occurring in the business cycle in the contemporary
period (Dyster and Meredith 2012). Keeping this into consideration, the concerned report
tries to analyse the economic growth of Australia over the last five years (2012-2017),

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thereby analysing the economic policy framework of the country. The report also tries to
discuss the industries which have grown in the country over the years, thereby trying to
analyse the reason behind the growth of the concerned industries.
Economic growth of Australia
As discussed above, the economy of Australia has developed visibly over the decades,
with a highly developed industrial sector and a prominent service sector, which has been
growing significantly over the years. Australia has over the years, emerged as a mining as
well as technological giant and much of the current prosperity of the country can be attributed
to the mining boom which Australia started experiencing in 2003 (Downes, Hanslow and
Tulip 2014). Australia, apart from a prosperous economy also has multi-lateral and long-term
trade connections with almost all the significant economies in the world in the contemporary
period, which in turn also contributes to the economic growth of the country over the years
(McLean 2012).
Economic Growth Trends of Australia (2012-2017)
The growth of an economy, in general, is measured in terms of the dynamics in the
economic growth indicators like that of the Gross Domestic Product (real as well as nominal),
the growth rates of GDP and also the per-capita GDP growth rate of the country and others.
In case of Australia, over the last five years, the Gross National Income has grown steadily
which can be shown with the help of the following figure:

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Figure 1: Gross National Income (2012-2017) of Australia in AUD million
(Source: Tradingeconomics.com 2018)
As is evident from the above figure, the gross national income of the country has been
increasing consistently, with the increase being especially prominent post 2015.
GDP (Different variants) and GDP Growth Rate in Australia (2012-2017)
This extremely positive pattern of growth of the Gross National Income of the
country, however, does not tally fully with that of the GDP and GDP growth statistics of the
country in the concerned period as can be seen from the following figure: