economics. Contents. Introduction......................

economics

Contents
Introduction...........................................................................................................................................2
Introduction of Australia.......................................................................................................................2
Production output performance analysis................................................................................................2
Labour market analysis..........................................................................................................................5
Price level analysis................................................................................................................................6
Government regulations to improve the economy of Australia.............................................................8
Conclusion.............................................................................................................................................9
References...........................................................................................................................................10

Introduction
This report brings out a research on economic performance by applying several
macroeconomic indicators such as GDP, unemployment rate, and inflation rate. The analysis
is based on ten years for economic performance. This report talks about the economic
performance of Australia for last ten years. The whole analysis reflects the economic
conditions of the country by analysing GDP, employment rate and the inflation rate.
Introduction of Australia
Australia is a sovereign country that is surrounded by many islands. It is a developed country
and is the world`s 13th largest economy with 10th highest per capita income. The country has
world`s 9th largest immigration population (Scutt, 2018). It is a mixed economy with high per
capita and low rate of poverty. In 2018, it is seen that in terms of wealth, it is ranked second
in the world after Switzerland from 2013 till 2018 as slowly it started overtaking Switzerland
with high average wealth (Scutt, 2018).
Production output performance analysis
GDP (Gross domestic Product) of Australia is total market value of overall goods and
services in a given time. GDP can be reported in two ways in either real terms or the current
prices by using chain volume measures (Guardian, 2019). This indicates that measurement of
production volumes is executed by removing the inflated prices. GDP is one of the important
macroeconomic indicators, which are used to evaluate the health of the country. This report
has undertaken the analysis of two important types of GDP. The types are nominal GDP, real
GDP, and per capita GDP. Nominal GDP is measured on the basis of market prices
(Guardian, 2019). This GDP includes all the changes in the market prices, which have
occurred in the recent years due to either inflation or deflation. Real GDP is defined as
considering the GDP of current year and taking market price of base year. Moreover, per

capita GDP is calculated by dividing the country`s nominal GDP of the Australia by the
exchange rate. This is a measure of country`s economic output which accounts for the
number of people, which is calculated by dividing nation`s GDP by its total population.
Considering these measures is important ad economy of the country is directly linked to
production, consumption, distribution of goods and services (Guardian, 2019).
Evolution: Annual GDP Australia
2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
3.50%
4.00%
Annual GDP growth
(Source: Parliament of Australia, 2019)
It is depicted from the research reports of economic growth of Australia that the country is
majorly dominated by service sector (Parliament of Australia, 2019). In recent economic
developments, it is seen that the economic success is based on mining, which is around 13.5
percent and agriculture is around 2 percent of total GDP because the country is the exporter
of commodities (Scutt, 2018). From the graph given above, it can be interpreted that the
annual growth of GDP has been fluctuating as in 2007 and 2011; it was around 3.7 and 3.9
percent. On the other hand, in 2008 and 2014, the annual GDP is decreasing (Guardian,
2019).