Economic Performance of Australia: GDP, Unemployment, Inflation and Trade

Running head: ECONOMICS FOR DECISION MAKING
Economics for decision making
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1ECONOMICS FOR DECISION MAKING
Abstract:
This report is going to represent the economic performance of Australia, especially on August
and September of 2018. After discussing this, the report will also compare the Australian
economy with that of August 2017. For doing this, the report has selected four macroeconomic
variables, namely, GDP growth rate, unemployment along with inflation as well as trade to
discuss and compare the economic activities.

2ECONOMICS FOR DECISION MAKING
Table of Contents
Introduction:....................................................................................................................................3
Annual GDP growth of Australia:...................................................................................................3
Unemployment in Australian economy:..........................................................................................4
Inflation rate:...................................................................................................................................5
Trade of Australia:...........................................................................................................................7
Explanation on three major issues of Australian economy:............................................................8
Conclusion:......................................................................................................................................9
References:....................................................................................................................................10

3ECONOMICS FOR DECISION MAKING
Introduction:
In 2017, the Sydney Morning Herald, a leading newspaper of Australia, published an
article stating that various economists have provided their different overviews regarding the
economic performance of Australia in 2017 through considering economic activities of previous
year (Meyer 2018). According to some economists, Australia’s gross domestic product (GDP) is
expected to increase in coming year due to increasing interest rates of the Reserve Bank of
Australia (RBA). However, some other economists have stated that the real GDP growth of
Australia did not change between 2016 and 2017, as the RBA cut its interest rates
(Tradingeconomics.com 2018). Supporting this statement, other economists have stated that
investment in business sectors could be reduce further due to slow increase in consumption
expenditure as well as limited housing construction, which further can happen due to weak
labour market and small increment in wages.
Thus, to understand about the actual economic condition of Australia, this report focuses
on economic performance of Australia on August and September, 2018 for comparing it with the
same of August 2017. For doing so, the report will divide the ensure discussion under four
headings, which are, annual GDP growth of Australia, unemployment, inflation and trade.
Annual GDP growth of Australia:
The RBA has forecasted that both international as well as national economy can
experience significant economic growth in come years, while other macroeconomic factors may
remain almost stagnant. During the 1st quarter of this year, Australia’s economic growth has
performed comparatively well than it was predicted. Through following this trend, the annual
GDP growth of Australia becomes 3.4 percent during recent period (Hutchens 2018). In this
context, strong labour market and favourable monetary policies have played significant role to