Study of Australian Economy in Global Economic Scenario

Running head: ECONOMICS ASSIGMENT
Economics Assignment
Name of the Student
Name of the University
Author Note

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Introduction
The global economic scenario though consists of many players, have been consistently
dominated by few big economies, over the last few decades. One of such economies is the
country of Australia. With the annual GDP of more than 1.5 trillion US dollars, in 2014, the
economy poses as one of the largest economies in the world. The country has been the fifteenth
largest in terms of per-capita GDP and twelfth largest in terms of nominal GDP in the world. The
country has one of the largest external sectors and is the nineteenth largest exporter and importer
in the global scenario (Dyster & Meredith, 2012).
Over the last few decades, the country has developed strongly in almost all of the
economic aspects, which is reflected in the country’s economic and industrial boom, a highly
developed and sustainable service sector, the GDP statistics and the overall population growth
and standard of living the country. The country experienced a significant and unprecedented
boom in its mining sector, which started from 2003 and had a huge contribution in the shaping
up of the economy. The residential sector also has developed hugely, drawing a considerable
amount of foreign investments in the last few decades. The external sector of the Australian
economy has performed significantly well with time. The robust economic policies and strong
strategic framework clubbed with the countries strong trade relations in global economic
scenario and efficient banking sector has helped it in remaining comparatively unaffected by the
Global Economic Crisis of 2007-2008, which otherwise affected all the other major economies in
the world.
In general, the economic growth and the overall health of the economy and the well-
being of the residents of any economy can be portrayed with the help of different economic
indicators like GDP statistics, GDP growth and growth rate, inflation, employment and overall
poverty indicators of that economy. The essay tries to analyze the economic transformations and

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conditions of Australia, between 2005 and 2014, with the help of the performances of the above-
discussed economic indicators (Groenewegen & McFarlane, 2014).
Production Output Performance
The overall economic performance of any country over certain period can be roughly
pictured with the help of the economic growth indicators of the country, like that of the gross
domestic product of the country within that specified period of time. Real GDP is a more robust
version of this indicator as it is adjusted for price changes and inflation or deflation, as the
presence of these phenomena, if not adjusted (as in nominal GDP) can give wrong signals about
the economic well being of that country. The growth of GDP and its rate of a country with time
show the overall performance and economic progress of the country with time (Potrafke, 2012).
The GDP statistic of Australia has shown considerable fluctuations in the last few
decades, owing to several positive as well as negative global and domestic phenomena, having
significant implications on the economy of the country. The GDP of the country increased
significantly from 613.3 billion USD in 2004 to 1.46 trillion USD in 2014.

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Figure 1: GDP Growth Rate of Australia
(Source: Tradingeconomics.com, 2017)
The above figure supports the fact that the economic growth of the country has been
subjected to several fluctuations along with time. For example, the global economic crisis of
2007-2008, had significant negative impact on the economy, which can be seen from the huge
trough in its GDP growth rate curve, as shown in the above figure (Source:
Tradingeconomics.com, 2017).
Again, on the other hand, the mining boom, one of the most significant event in the
economic history of the country, which changed the dynamics of the country to a huge extent,
increased the GDP growth rate of the country as well and helped the country to emerge as a
dominant player in the global economic scenario.