Analysis of GDP and Unemployment Rate in Australia and European Countries

Running head: MODERN ECONOMY
Modern Economy
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1MODERN ECONOMY
Table of Contents
Task 1: Data Collection and Analysis.............................................................................................2
Task 1.1 Analysis of GDP per capita...........................................................................................2
Task 1.2 Analysis of GDP growth, unemployment rate and inflation.........................................5
Task 2: Economic Policy and Analysis.........................................................................................22
Task 2.1 Cash rate and key interest rate....................................................................................22
Task 2.2 Analysis of monetary policy action............................................................................23
References:....................................................................................................................................25

2MODERN ECONOMY
Task 1: Data Collection and Analysis
Task 1.1 Analysis of GDP per capita
Table 1: Per capita GDP of Australia and selected European countries
Year Australia United Kingdom France Germany Spain Portugal
2000 44313.32 35576.77 38460.68 37998.43 28335.00 21513.46
2001 44564.98 36341.71 38928.03 38577.73 29264.88 21777.41
2002 45786.64 37077.65 39078.2 38512.92 29685.36 21824.98
2003 46575.42 38132.84 39120.2 38218.35 30082.63 21540.07
2004 47880.61 38813.02 39915.26 38673.89 30504.36 21877.91
2005 48760.36 39740.90 40252.42 38969.32 31110.01 22004.8
2006 49408.05 40418.75 40922.08 40456.86 31865.37 22306.28
2007 50955.06 41050.41 41630.09 41831.87 32459.92 22817.32
2008 51770.91 40536.13 41478.94 42365.1 32303.24 22829.85
2009 51689.91 38545.92 40052.31 40086.1 30874.13 22128.85
2010 51936.89 38893.02 40638.33 41785.56 30736.63 22538.65
2011 52475.66 39150.76 41283.15 44125.33 30321.70 22159.48
2012 53553.23 39455.41 41158.88 44259.26 29414.86 21353.23
2013 54008.71 39996.50 41183.51 44354.74 29008.02 21228.09
2014 54546.20 40908.75 41374.76 45022.57 29496.38 21533.49
2015 55017.25 41536.92 41642.31 45412.56 30532.45 22016.84
2016 55731.50 42039.74 41968.98 45923.01 31505.61 22444.07
2017 55925.93 42514.49 42567.74 46747.19 32405.75 23116.58

3MODERN ECONOMY
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
0.00
10000.00
20000.00
30000.00
40000.00
50000.00
60000.00
GDP per capita
United Kingdom France Germany
Spain Portugal Australia
Figure 1: Per capita GDP of Australia and selected European countries
Source: (Data.worldbank.org, 2018)
Per capita GDP of nation present average income of the nation in a given accounting
year. It is generally obtained by dividing accounted Gross Domestic Product by the population of
the specific year. The figure above represents trend in per capita GDP of Australia along with
five different nations selected from European Zone from 2000 to 2016 (Data.worldbank.org,
2018). As revealed from the above figure, per capita GDP in Australia accounted an increasing
trend from 2000 to 2008. This implies people in Australia enjoyed a continuous increase in their
average income during this time. The growth in Australia’ per capita GDP was constituted by
various policy measures and government support during this time. The fiscal stimulus, sound
policies of taxation and policies related with labor market provided a steady support to the
economy (Heger, Zens & Bangalor, 2018). Per capita GDP suddenly slipped down in the year
2009. This was due to the hit of global financial crisis during time. However, given the resilient

4MODERN ECONOMY
nature of the economy and different stimulatory packages, the economy soon recovered. Since
2010, per capita GDP again started to increase again.
The trend in per capita GDP in United Kingdom is similar to that of Australia. Per capita
GDP was in a phase of continuous increase from 2000 to 2008. In the list of G7 economies UK is
one of the fastest growing nations. Following global financial crisis in the year 2008 per capita
GDP recorded a sudden decline (Beuselinck et al., 2017). It however did not take much time to
recover the recessionary pressure of global financial crisis as evidenced from an increasing trend
in the average income.
France and Germany being one of the most developed European nations constituted a
much higher per capita GDP compared to Spain, Portugal and even United Kingdom. Among the
five selected European countries, France and Germany respectively recorded first and second
highest per capita GDP. In Spain, per capita GDP is much less than other European nations and
Australia. Per capita GDP of Spain shown a more or less increasing trend except in 2009 and
2012 (Data.worldbank.org, 2018). The break in per capita GDP is due to the external economic
shock. The decline in per capita GDP in 2012 however was due to the internal debt crisis. Per
capita GDP is Portugal is the lowest compare to five nations. The economy though is progressing
as evidenced from a growing trend in per capita GDP. The growth however is relatively less
compared to other countries of comparison.

5MODERN ECONOMY
Task 1.2 Analysis of GDP growth, unemployment rate and inflation
GDP growth rate
Table 2: GDP growth of Australia and selected European countries
Year Australia United Kingdom France Germany Spain Portugal
2000 3.94 3.66 3.88 2.96 5.29 3.79
2001 1.93 2.54 1.95 1.70 4.00 1.94
2002 4.00 2.46 1.12 0.00 2.88 0.77
2003 2.99 3.33 0.82 -0.71 3.19 -0.93
2004 4.00 2.36 2.79 1.17 3.17 1.81
2005 3.19 3.10 1.61 0.71 3.72 0.77
2006 2.83 2.46 2.37 3.70 4.17 1.55
2007 3.78 2.36 2.36 3.26 3.77 2.49
2008 3.66 -0.47 0.20 1.08 1.12 0.20
2009 1.92 -4.19 -2.94 -5.62 -3.57 -2.98
2010 2.05 1.69 1.97 4.08 0.01 1.90
2011 2.45 1.45 2.08 3.66 -1.00 -1.83
2012 3.89 1.48 0.18 0.49 -2.93 -4.03
2013 2.64 2.05 0.58 0.49 -1.71 -1.13
2014 2.56 3.05 0.95 1.93 1.38 0.89
2015 2.35 2.35 1.07 1.74 3.43 1.82
2016 2.83 1.94 1.19 1.94 3.27 1.62
2017 1.96 1.79 1.82 2.22 3.05 2.68