Economic Performance of Australia: Analysis of GDP, Unemployment Rate and Inflation Rate

Running head: ECONOMIC PERFORMANCE OF AUSTRALIA
ECONOMIC PERFORMANCE OF AUSTRALIA
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ECONOMIC PERFORMANCE OF AUSTRALIA1
Table of Contents
Introduction................................................................................................................................2
Production output performance analysis....................................................................................2
Labor Market Analysis...............................................................................................................5
Price Level Analysis..................................................................................................................7
Conclusion..................................................................................................................................9
Reference..................................................................................................................................11

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Introduction
The country, Australia is one of the well known country for its mixed economy. The
primary exporting goods are the products produced by the agricultural sector in Australia.
Hence, the agricultural sector in Australia contributes 3 per cent to their overall GDP
(Nff.org.au., 2019). Even there was a fall in the manufacturing industry of Australia, but
recently, at the beginning of 2019, they have started to recover. Thus, the mentioned country
have contributed about 6.1 per cent of the total GDP of Australia (Abs.gov.au., 2019).
Around 70 per cent of the Australian economy’s gross domestic product is represented by
Australia’s service sectors (Dfat.gov.au., 2019).
The primary produced goods in Australia are iron and ores, coal, beef, gold and
wheat. Australia mainly trades with China, United States, Singapore, Japan and New
Zealand. Australia and these countries trade in both way (Businessinsider.com.au., 2019).
Wesfarmers, Rio Tinto, Westpac Banking Corporation, Woolworths and BHP are the top
companies in Australia who earn a large proportion of revenues in Australia.
As known, the global developments of Australia majorly influences the financial
condition of the mentioned country. Australia experienced a rise in its GDP after the
recession, which took place from 1999 to 2008. Nevertheless, since, 2009, the economic
growth of Australia have declined. However, throughout 2017 and early 2018 experienced an
increase in their economy.
Production output performance analysis
The financial value of all the final finished products as well as the services
manufactured inside the economy is coined as Gross Domestic Product . GDP can be
categorized into two types. One of them in nominal GDP and the other one is real GDP.
According to Michl (2015), the real gross domestic product (GDP) is an indicator of

ECONOMIC PERFORMANCE OF AUSTRALIA3
macroeconomics which measures the gross output of a country that gets revised whenever
there is a change in price. This type of GDP helps to compare the real volume of products in
the absence of inflation. Whereas, the inflation is considered by the nominal gross domestic
product. Thus, nominal GDP is also termed as inflation-adjusted gross domestic product. The
government of any country with the help of the real GDP examines as well as compares the
purchasing power of any company. In this way, the real GDP measures the economic
performance of any country.
The graphical representation of Australia’s growth rate of GDP has been portrayed
below:
Figure 1: Trend pattern of rate of GDP growth in Australia
(Source: Tradingeconomics.com., 2019)
The above graph represents the rate of growth of real GDP in Australia over the last
ten years, that is from 2008 to 2018. The time span is measured along the horizontal axis.
While the vertical axis has indicated the growth rate of GDP of Australia. From figure 1, it
can be seen a fluctuating trend throughout ten years. The global financial crisis was in effect