Evaluation of Macroeconomic Performance of Australia (1990-2015)

BUS700 ECONOMICS
Paired-Assignment
Topic: Evaluation of Macroeconomic performance
of Australia
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Executive Summary
In this report study, the macroeconomic performance of the country Australia in between the
years 1990 to 2015 has been discussed. Moreover, the research has been made in the report in
context of the real performance of Australia in the past years. The report study also highlights
over the statistical data such as graphs, figures and trends showing the real GDP,
unemployment rate and many others of the Australia. Also, the relationship the real GDP as
well as each and every key performance indicators has also been described in the assignment.
The report focuses on all the aspects of the performance indicators of the Australia and
analyses or evaluates it in order to state the economic condition of the country.
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Contents
Executive Summary...................................................................................................................2
Introduction................................................................................................................................4
Research-based analysis and evaluation of the macroeconomic performance of
Australia1990to 2015 (Two Questions).....................................................................................5
1. Obtain annual data on key macroeconomic indicators: real GDP growth, interest rate (cash
rate), unemployment rate, inflation rate, exchange rate, and net exports (NX).........................5
(2) Critically analyse tables of statistical summaries and graphs of the information obtained in
(1) to answer the following question:.......................................................................................12
a) Discuss the relationship between real GDP growth and each of the other five indicators.
Provide plausible economic explanations, including the impact of monetary policy and
fiscal policy..........................................................................................................................12
b) Discuss the relationship between inflation and unemployment rates. Provide plausible
economic explanations, including the impact of monetary policy and fiscal policy...........13
c) In which decade has monetary policy been tighter? Explain in detail.............................14
d) Write a short prediction of Australia’s macroeconomic outlook for the next 2 years. Is
Australia likely to experience a recession or an expansion?................................................15
Recommendations....................................................................................................................16
Findings....................................................................................................................................17
Conclusion................................................................................................................................18
References................................................................................................................................19
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Introduction
The report study contains the analysis, evaluation and research of the macroeconomics
factors which leads to describing of the Australia’s performance in the past few years. The
facts, figures, graphical or statistical representations are used so as to define the performance
of Australia. For such purpose the various macroeconomics factors such as inflation rate, real
GDP, unemployment rate, exchange rate, and many others have been considered. The
information generated in the report study emphasis over the relationship among the GDP and
indicators and also upon the inflation rate and unemployment rates. Moreover, the monetary
and fiscal policies practiced within the Australia are also identified in order to determine the
performance of the country. The accuracy and reliability of the data is kept at the priority in
the report study and the sources or data is collected from the academic journals, official
websites, authentic articles and others. In the end, the findings of the study have been made
along with the recommendation and conclusion.
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Research-based analysis and evaluation of the macroeconomic performance of
Australia1990to 2015 (Two Questions)
1. Obtain annual data on key macroeconomic indicators: real GDP growth, interest rate
(cash rate), unemployment rate, inflation rate, exchange rate, and net exports (NX).
Key Macro-Economic Indicator – According to the views and thoughts of the author Smith
(2018), it reflects over the historical performance of the economy and also records of the
changes which are taking place in the economy over the past years. The economic trends as
well as pattern has been analysed in the indicator. It estimates over the long-term trends and
analysis of data. The economic changes occurring over certain time period is been reflected
in the indicator. This covers the changes taking place among the GDP, unemployment rate,
income and wages, consumer price index, interest rates, balance of trade and many others
(Smith, 2018).
Australia Key Macroeconomic Indicator – The diagrammatic representation below reflects
the various key economic indicators of the Australia. Some of the macroeconomic indicators
have been explained and analysed below.
Figure 1: Key Economic Indicators
Source: (Reserve Bank of Australia, 2018)
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GDP (Gross Domestic Product) Growth
The statistical data reflecting the GDP of Australia of past 25 years has been shown in the
below figure. There is an upwards and downward trend been recorded in the figure in relation
to the GDP performance of Australia. In the year 1999, the GDP growth of Australia is at its
maximum and in the successive years it gradually decreased to a greater extent. The report
from The World Bank has been studied and identified which states the varying trend of the
GDP among Australia in last 25 years.
Figure 2: Australia
Source: (World Development Indicators, 2018)
Real GDP Growth
From the reports of the International Monetary Funds (2017), the real GDP of Australia
starting from the year 1980 to estimated year 2020 has been shown in the statistical figure
below. There are a lot of changes and deviations been recorded in the GDP of the country. In
the late 90’s the country has shown good performance as compared to the recent years.
However, there are numerous reasons for the declining of the GDP growth rate of Australia.
In 1984 the country has performed and attained highest real GDP growth and then afterwards
decreased of its performance.
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