Performance of Australian Economy (2015-2019)

Running head: PERFORMANCE OF AUSTRALIAN ECONOMY (2015-2019)
PERFORMANCE OF AUSTRALIAN ECONOMY (2015-2019)
Name of the Student
Name of the University
Author Note

PERFORMANCE OF AUSTRALIAN ECONOMY (2015-2019)2
Abstract
The study aims to overview the performance of the Austraian economy from the year of 2015
onwards. The findings of the study has considered four major economic indicators, such that,
gross domestic product (GDP), level of unemployment, rate of inflation and the trade owing to
do comparative analysis across the concerned period. As per the trade analysis, the terms of
TOT), the current account, net external debt and the value of the Australian currency. The paper
is reported to have the increasing GDP growth over the concerned period. The upward
movement of the GDP is expected to enhance the economic growth as GDP is accountable for
the signficant growth parameter for an economy. However, the rate of GDP growth has been
deteriorating over the period. Meanwhile, the number of employment has declined owing to
international trade dispute between the USA and China, regional political issues and ineffective
governmental policies. In addition to that, the economy has experineced with a significant
progress in TOT. This results in the improvemnet of the export earinings in respect of the import
cost. The growth in the export sector is expected to abate the financial debt. Howevr, the country
has faced upward trend in the foreign debt due to devaluation of the Australian currency. In this
context, the paper attempts to address some economic concerns related to the inadequate trade
protectionism, inappropriate government interventions and rising interest rate. The rising energy
price owing to the trade strife is another major issue for this economy. Moreover, the exorbotant
price charge in the real estate market is assumed to lower the wealth generation for the aspriring
home buyers.

PERFORMANCE OF AUSTRALIAN ECONOMY (2015-2019)3
Table of Contents
Introduction......................................................................................................................................4
Economic Growth............................................................................................................................4
Unemployment rate.........................................................................................................................6
Inflation............................................................................................................................................7
Trade................................................................................................................................................8
Terms of Trade............................................................................................................................8
Current Account...........................................................................................................................9
Net Foreign Debt.......................................................................................................................10
Value of Australian Dollar.........................................................................................................11
Major issues facing the Australian economy.................................................................................11
Conclusion.....................................................................................................................................12
References......................................................................................................................................14

PERFORMANCE OF AUSTRALIAN ECONOMY (2015-2019)4
Introduction
The assignment gives a report about the present (up to August 2019) economic state of
Australia based on four macroeconomic indicators of the country namely Gross Domestic
Product (GDP), Unemployment, Inflation and Trade. For better understanding of the
performance of trade in the economy; the economic indicator, trade is analyzed in respect to
Terms of Trade (TOT), Value of Australian dollar, Current Account and Net Foreign Debt. Each
and every indicator is examined and evaluated carefully over the period ranging from 2015 to
2019 and then the trend exhibited by every single economic indicator is predicted. The study also
forecasts as well as highlights the three prime issues that the nation will be going to face in the
next 12 months, completely depending on the analysis of the indicators for 2015, 2016, 2017,
2018 and 2019. Finally the report talk about why the discussed issues are of great concern for the
country.
Economic Growth
Gross Domestic Product (GDP) is marked as the primary indicator which depicts the
Economy Growth of any country (Panizza and Presbitero 2014). In this section both the GDP as
well as the GDP growth rate of Australia for the years 2015, 2016, 2017, 2018 and 2019 are
considered to study economic growth of the nation. The figure 1 illustrates the same.