Macroeconomic Industry Analysis

Added on - 22 Nov 2020

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ANALYSIS
Table of ContentsINTRODUCTION...........................................................................................................................1MAIN BODY...................................................................................................................................1a) Industry's contribution to Australia's annual GDP.............................................................1b) Industry's relations with the government...........................................................................3c) Predictions may happen in the industry.............................................................................4d) Predict may happen in the industry if all these factors fall within one year......................6e) Recommendations to CEO of Commonwealth Bank.........................................................7CONCLUSION................................................................................................................................8REFERENCES................................................................................................................................9
INTRODUCTIONMacroeconomics industry analysis based upon the study of particular sector subject toeconomic growth and development of organisation (Vogel, 2014). This report is prepared toanalyse the banking industry of Australia in terms of contribution and proportion to GDP ofthecountry. There will be a description oftherelationship shared between industry and government.Impact on economy of Australia due to decline in currency rates, rise of unemployment ratesand reduction in imports from china are discussed in this report. Prediction as per the changesfor the year are evaluated properly. A conclusive report is produced to the CEO ofcommonwealth bank of company in the industry are given in this report.MAIN BODYa) Industry's contribution to Australia's annual GDP.Australian baking sector and financial service sector retain largest share in economicgrowth and development of nation. Banking industry contribute to Australia's economic throughlarge investment in IT and drivers of productivity. It contributed approx $140 billion GDP overlast year in economy (Banking Australian FinTech, 2018). It has become a core service sector ofAustralian economy and emerging as a economic growth factor. The common wealth bank is anAustralian multinational bank counted as highest contributor to financial growth. Its coreactivities and businesses are carried out across Asia, the united states, the united kingdom andNew Zealand. Australian banking sector is a combination of various services like financialservices, business and institutional banking, insurance, investment and broking services. InAustralian securities exchange, listed commonwealth bank and this exchange including brandslike colonial first state, bank west, commonwealth securities. Royal commission is a legalauthority controls the banking services and activities in Australia.In Australian economy Gross domestic product by banking industry is USD 1,343.6billion (2017, estimate) and international reserves are USD 52.2 billion (2016). In Australianeconomy GDP ( purchase power parity ) Intl $ 1246.6 billion (2017, estimate ). Real GDPgrowth was of banking industry 2006 to 2017 are follows as – growth rate was in 2006 was2.7%, 2007 – 4.5%, 2008 – 2.6%, 2009- 1.8%, 2010 – 2.3%, 2011 – 2.7%, 2012 – 3.6%, 2013-2%, 2014 – 2.7%, 2015 – 2.4%, 2016* - 2.9% and 2017* - 2.7% (Economic growth, 2013).1
These growth rates indicate that how economic growth rate fluctuated according to year.It is expected to that financial and banking services will be explored in terms of investment ininfrastructure and retail sectors. GDP per capita of last year prices USD 54,236.0 (2017,estimate) and for PPP Intl $ 50,321.8 (2017, estimate). GDP (PPP) of share of world total in1980 was 1.20%, 1990 was 1.17%, 2000 was 1.13%, in 2010 was 1.05% and in 2017 was 1.0%.GDP composition by sector is as followsAgriculture - 3.6%Infrastructure and manufacturing industries – 28.2%Services – 68.2%In Australian economy banks make a major contribution and an important industry retaintheir own right and regulations. Banking sectors also provides large amount of income in termsof high taxes to government. There are some factors related to GDP are defined as follows-Economic growth– The Australian economy is a modern service economy and adeveloped economy. 9.3% of cumulative share of banking and financial service sectorwas recorded in total service sector. Overall growth including banking, financial andinsurance services was recorded as follows 2010 was 8.8%, in 2012 was 8.7%, in 2014was 8.9% and in 2015 was 9.3% (Economic growth, 2013).Exports– Criteria of export of financial services was found less form contribution toGDP perspective. Exports from financial services and over the year ending June 2015,was recorded as 5.7% and contribution of financial services in exports counted as 1.1%in Australia's total exports.Productivity and efficiency– Productivity is primary source of higher living standardsand economic advancement. Banks constantly imp in Australian economy banks make amajor contribution and an important industry retain their own right and regulations.Banking sectors also provides large amount of income in terms of high taxes togovernment. There are some factors related to GDP are defined as follows-Economic growth of banking and financial services– The Australian economy is amodern service economy and a developed economy. 9.3% of cumulative share of bankingand financial service sector was recorded in total service sector. Overall growth includingbanking, financial and insurance services was recorded as follows 2010 roving of theiroperations by efficiency and banks drive these productivity. For measure of productivity2
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