Global Financial Crises: Impact on Australian Economy and Policy Responses

GLOBAL FINANCIAL
CRISES

INTRODUCTION
Global financial crises refers to the financial crises which affect various countries at the
same time. It refers to the period of difficulties which the financial organizations and financial
institutes experiences simultaneously (Covid, C.D.C. and et.al., 2020).
EVENT OVERVIEW
COVID-19 have become the global Financial crisis which have hit the global economies
adversely. Corona Virus is the disease which spread through the nose and mouth. The disease
spreads with breath which is too small for the human eyes to see and attack the near people. The
COVID-19 pandemic have presented the unprecedented the set of health and various other
increasing economic challenges for the countries all across the globe.
How GFC became a global crisis
COVID-19 has been considered as a public health threat but also an economic threat. The
virus triggered a recession in a lot of countries and declared the annual growth way lower which
is taken as a recessionary threshold for the global economy. From the scale of human movement
the virus spread further all across the world. It was said by some experts that the crises was
predictable. The COVID-19 pandemic caused high levels of public debts and other additional
pressures on all the major resources of development finance (Lopez Bernal, J. and et.al., 2021).
Also the low and middle income countries have struggled yo finance their financial health and
social and economic responses to respond to global financial crises. The impact of COVID-19
has continued to diverse all across the globe over the June 2021. GDP remained below pre-
pandemic levels but many economies have recorded a strong growth .
key impacts on Australian economy
Like other countries, Australia has also face various impacts and implications of COVID-
19, global crises. The COVID-19 crisis has been considered as 38th leading cause of death in
Australia. The emergence of COVID-19 and its health effects made tracking or mortality much
more important than it ever was. The deaths from COVID-19 have highlighted the broader
effects of the disease and the pandemic and health service delivery too. It was seen that 898
deaths were reported from the COVID-19 crises in 2020.
In the June 2021, several short lock-down across the Australia were measured. The visits
and the lengths of stay have changed which are related to pre-pandemic mobility. The amount of
time spend by people at home increased (Mo, P. and et.al, 2020). Various changes in retail and

recreation mobility and the household consumptions raised. Some states recorded the smallest
increase in the household consumption. In the Queensland household consumption was derived
through spendings on travel, operation of vehicles and the gas, electricity and other fuels. Retail
and recreation categories of household consumptions fell. Growth in the transit station mobility
and the consumption of transport services was also reported.
In the chart the reference year for chain volume measure is year 2018-2019. The
Australian economy rose 0.7% in its seasonally adjusted chain volume measures and the GDP
rose to 1.4 for the global financial crises of COVID-19 in the years 2020-2021. also the terms of
trade rose to 7.0% and the household serving ration decreased from 1.6 to 9.7%. Despite being
the COVID-19 pandemic the public investment continued to grow and reached its highest level
in the series (Welcome to the Australian Bureau of Statistics, 2021). The government of Australia
invested in new assets expect one off impact of asset sales and other transfers, was the key
contributor to public investment growth in three recent quarters. The government increased the
investment by state and local government evident in the engineering and building constructions.
The post COVID-19 financial crises adjusted estimates for September 2021 recorded increase in
unemployment rates by 4.6%. the employment decreases up-to 12,884600. the monthly worked
10%
10%
11%
11%
3% 12% 1%
1%
11%
31%
GDP GDP per capita (c)
Gross value added market
sector (d)
Real net national disposable
income
Productivity Productivity GDP per hour
worked
Productivity Real unit labour
costs
Prices
Prices GDP chain price index
(original)
Prices Terms of trade
Current price measures Current price measures GDP
Current price measures
Household saving ratio