Components of GDP in Australia

Running head: ECONOMICS
Economics
Name of the student
Name of the university
Author note

ECONOMICS
Answer 1
Table 1 Expenditure component of GDP
Year ConsumptionInvestment
Governm
ent
Expendit
ure
Net export
1987 30806.83 8026.464 8166.571 1848.043
1988 31275.45 8476.437 8325.362 1888.047
1989 32103.61 9246.948 8444.018 1115.092
1990 32893.98 9204.085 8550.086 1113.993
1991 33000.96 8231.265 8717.542 1923.703
1992 33447.09 7822.063 8849.053 2313.305
1993 33819.8 8264.815 8991.15 2494.203
1994 34115.37 8658.428 9000.341 2786.944
1995 35086.56 9493.027 9187.612 2346.463
1996 35935.85 9640.875 9462.752 2818.537
1997 26994.86 10180.87 9557.642 3147.109
1998 28034.62 11055.39 9841.16 2932.06
1999 29306.77 11415.86 10170.77 2754.819
2000 30200.51 12196.83 10362.4 2852.353
2001 30766.47 11085.88 10404.12 3749.885
2002 31365.27 11962.29 10604.4 3554.319
2003 32264.89 13315.07 10796.05 2637.544
2004 33520.75 14320.16 11151.05 1679.487
2005 34586.1 14994.28 11361.86 916.2278
2006 35161.86 15986.15 11538.16 423.7053
2007 36389.68 16399.74 11681.75 -234.058
2008 37361.71 17455.04 11777.63 -1410.81
2009 36904.55 17404.99 12050.06 -682.578
2010 37577.86 17464.14 12089.27 -998.445
2011 38468.63 17811.85 12306.48 -2185.04
2012 38911.2 19515.07 12530.13 -3174.06
2013 38971.14 19782.23 12367.32 -2531.79
2014 39343.02 19152.23 12375.63 -1410.22
2015 39688.33 18280.12 12494.11 -644.164
2016 40103.59 17358.65 12811.11 313.8212
2017 40410.66 17050.19 13242.56 437.9719
2018 41025.39 17564 13581.79 -22.6278
(Source: Australian Bureau of Statistics, Australian Government. 2019)

ECONOMICS
The above table shows the value of the components of the gross domestic product in terms of
real per capita. The four expenditure components of gross domestic product are the
consumption, investment, government expenditure and net exports. The table shows the
values of the expenditure components from the year 1987 to 2018 from the Australian Bureau
of Statistics. The data have been collected from Australian Bureau of Statistics of Table 2.
Expenditure on Gross Domestic Product (GDP) from (5204.0 Australian System of
National Accounts).
1987
1989
1991
1993
1995
1997
1999
2001
2003
2005
2007
2009
2011
2013
2015
2017
0
5000
10000
15000
20000
25000
30000
35000
40000
45000
Consumption in real per capita
Consumption
The graph shows the consumption in terms of real per capita of Australia from the
year 1987 to 2018. Consumption is the usage of goods and services by the households. The
household final consumption expenditure is the market value of the goods and services which
are purchased by households and does not include the purchase of dwellings. Consumption is
the function of income, therefore as the income of the people increases the consumption also
increases. The graph shows that the consumption is increasing at an increasing rate. The
trend above shows that consumption have reached a level high in the year 1996, however it
decreased sharply after that in the year 1997. After that the rate of consumption per capita
started increasing and have reached the highest in the recent year (Australian Bureau of

ECONOMICS
Statistics, Australian Government., 2019). Consumption is the way by which the consumers
use the goods.
1987
1989
1991
1993
1995
1997
1999
2001
2003
2005
2007
2009
2011
2013
2015
2017
0
5000
10000
15000
20000
25000
Investment in real per capita
An investment is the asset required with the goal of generating income or
appreciation. The growth in the economy is known to encouraged through the usage of sound
investment at the business level. The government investment is the their most important
determinant of calculating the gross domestic product of a nation. The investment had been
historically during from 2011 to 2014. In Australia the investment spending as a share of the
economy increased to a multi decade high specially between the period 2012 to 2013. The
investment had been so high because of the record level investment spending in the mining
sector (Tadjoeddin, . 2016). The investment spending for the purpose if mining increased
from 2 percent of the gross domestic product to around 9 percent of the gross domestic
product in the year 2012/2013. Therefore, it can be said that the huge rise in investment
during 2012 was specifically due to the boom in the mining sector. The investment in the
mining sector had been much stronger compared to the other sectors since the mining