Economic Analysis of Selected Countries

This assignment requires an economic analysis of four countries: India, Germany, Australia, and New Zealand. Students must examine various economic indicators including central government debt (% of GDP), consumer price index (CPI), gross domestic product (GDP) by expenditure, government final consumption expenditure, imports, and unemployment rate. The analysis should focus on identifying trends, comparing performance across countries, and drawing insights into their respective economic situations.

Running head: THE GLOBAL ECONOMY
The Global Economy
Name of the university
Name of the student
Author Note

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Part A:
Answer 1:
The following table will show those countries, which have ranked the 6th, 7th, 8th, 9th
and 10th in terms of bilateral trade with Australia in 2014.
Rank Country
6 New Zealand
7 Malaysia
8 Thailand
9 Germany
10 India
Table 1: Bilateral trading partners of Australia, in 2014
Source: (Department of Foreign Affairs and Trade, 2018)
In the below table, the ranking of the previous countries in terms of Australia’s top
exports destination will be shown for the year 2015.
Country Rank
New Zealand 6
Malaysia 10
Thailand 13
Germany 15
India 5
Table 2: Ranking of the previous countries as Australia’s top exports destination, 2015
Source: (Department of Foreign Affairs and Trade, 2018)

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The top ten exporting countries of Australia is shown in below table for the year
2016.
Rank Country
1 China
2 Japan
3 United States
4 Republic of Korea
5 United Kingdom
6 India
7 New Zealand
8 Hong Kong
9 Singapore
10 Taiwan
Table 3: Top ten exporting countries of Australia, 2016
Source: (Department of Foreign Affairs and Trade, 2018)
Answer 2:
i)
Gross Domestic Products (GDP) of Australia, New Zealand, India and Germany
based on 2010 (U.S. Dollars), Annual, Not Seasonally Adjusted.

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Figure 1: Annual GDP of Australia (2010, U.S.D)
Source: (Fred.stlouisfed.org, 2018)
Year GDP Value ( 2010, USD)
Index (2010= 1)
2000 0.74000
2001 0.76000
2002 0.79100
2003 0.81300
2004 0.84600
2005 0.87100
2006 0.89500
2007 0.93400
2008 0.95800
2009 0.97600
2010 1.00000
2011 1.02700
2012 1.06700

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2013 1.09100
2014 1.11800
2015 1.14700
Table 4: Annual GDP of Australia (2010, U.S.D)
Source: (Fred.stlouisfed.org, 2018)
Figure 2: Annual GDP of New Zealand (2010, U.S.D)
Source: (Fred.stlouisfed.org, 2018)
Year GDP Value ( 2010, USD)
Index (2010= 1)
2000 0.76400
2001 0.78100
2002 0.82100
2003 0.85800
2004 0.89600
2005 0.91900
2006 0.94400
2007 0.98100
2008 0.97700

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2009 0.98100
2010 1.00000
2011 1.01900
2012 1.04500
2013 1.06700
2014 1.09700
2015 1.13300
Table 5: Annual GDP of New Zealand (2010, U.S.D)
Source: (Fred.stlouisfed.org, 2018)
Figure 3: Annual GDP of India (2010, U.S.D)
Source: (Fred.stlouisfed.org, 2018)
Year GDP Value ( 2010, USD)
Index (2010= 1)
2000 NA
2001 NA
2002 NA
2003 NA

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2004 NA
2005 NA
2006 NA
2007 NA
2008 NA
2009 NA
2010 1.00000
2011 NA
2012 1.3200
2013 1.20100
2014 1.28500
2015 1.38200
Table 6: Annual GDP of India (2010, U.S.D)
Source: (Fred.stlouisfed.org, 2018)
Figure 4: Annual GDP of Germany (2010, U.S.D)
Source: (Fred.stlouisfed.org, 2018)

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Year GDP Value ( 2010, USD)
Index (2010= 1)
2000 0.91400
2001 0.93000
2002 0.93000
2003 0.92300
2004 0.93400
2005 0.94000
2006 0.97500
2007 1.00700
2008 1.01800
2009 0.96100
2010 1.00000
2011 1.03700
2012 1.04200
2013 1.04700
2014 1.06700
2015 1.08600
Table 7: Annual GDP of Germany (2010, U.S.D)
Source: (Fred.stlouisfed.org, 2018)
ii)
Total central government debt of Australia, New Zealand, India and Germany, total (% of
GDP, Annual, Not Seasonally Adjusted)

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Figure5: Total central government debt of Australia, total (% of GDP)
Source: (Fred.stlouisfed.org, 2018)
Year Total central government debt
total (% of GDP)
2000 29.57454
2001 27.77455
2002 25.98684
2003 25.16258
2004 22.94081
2005 22.49565
2006 21.60331
2007 20.30457
2008 18.37448
2009 24.00725
2010 29.34086
2011 30.72087
2012 40.11420
2013 38.25787

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2014 42.43556
2015 47.16824
Table 8: Total central government debt of Australia, total (% of GDP)
Source: (Fred.stlouisfed.org, 2018)
Figure6: Total central government debt of New Zealand, total (% of GDP)
Source: (Fred.stlouisfed.org, 2018)
Year Total central government debt
total (% of GDP)
2000 NA
2001 NA
2002 32.77614
2003 48.24534
2004 43.86723
2005 44.17012
2006 42.92629
2007 36.94151

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2008 36.05584
2009 47.18888
2010 49.20450
2011 62.57289
2012 67.14840
2013 59.37423
2014 56.78294
2015 56.73015
Table 9: Total central government debt of New Zealand, total (% of GDP)
Source: (Fred.stlouisfed.org, 2018)
Figure7: Total central government debt of India, total (% of GDP)
Source: (Fred.stlouisfed.org, 2018)
Year Total central government debt
total (% of GDP)
2000 55.74789
2001 59.81582
2002 63.39847

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2003 63.03085
2004 63.43922
2005 63.10969
2006 60.95971
2007 58.24545
2008 57.86867
2009 56.00546
2010 52.18357
2011 51.55655
2012 50.67803
2013 50.31183
2014 NA
2015 NA
Table 10: Total central government debt of India, total (% of GDP)
Source: (Fred.stlouisfed.org, 2018)
Figure8: Total central government debt of Germany, total (% of GDP)
Source: (Fred.stlouisfed.org, 2018)
Year Total central government debt
total (% of GDP)
2000 38.31347
2001 36.76872
2002 38.14062
2003 39.79055

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2004 41.68602
2005 43.30620
2006 42.31146
2007 39.60632
2008 41.98689
2009 46.11890
2010 54.32626
2011 53.94481
2012 55.6056
2013 52.67787
2014 53.53316
2015 50.46999
Table 11: Total central government debt of Germany, total (% of GDP)
Source: (Fred.stlouisfed.org, 2018)
iii)
Imports: Value Goods for Australia, New Zealand, India and Germany (Percent of GDP,
Annual, Not Seasonally Adjusted);
Figure9: Imports: Value Goods for Australia (Percent of GDP)

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Source: (Fred.stlouisfed.org, 2018)
Year Imports: Value Goods
(Percent of GDP)
2000 17.04
2001 16.16
2002 16.35
2003 15.74
2004 15.74
2005 16.23
2006 17.06
2007 16.63
2008 18.20
2009 15.93
2010 15.46
2011 15.49
2012 15.99
2013 15.37
2014 15.68
2015 16.27
Table 12: Imports: Value Goods for Australia (Percent of GDP)
Source: (Fred.stlouisfed.org, 2018)

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Figure10: Imports: Value Goods for New Zealand (Percent of GDP)
Source: (Fred.stlouisfed.org, 2018)
Year Imports: Value Goods
(Percent of GDP)
2000 25.90
2001 25.12
2002 24.19
2003 22.47
2004 22.73
2005 23.20
2006 24.15
2007 22.84
2008 25.46
2009 21.02
2010 21.03
2011 22.24
2012 21.87

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2013 21.21
2014 21.38
2015 21.15
Table 13: Imports: Value Goods for New Zealand (Percent of GDP)
Source: (Fred.stlouisfed.org, 2018)
Figure11: Imports: Value Goods for India (Percent of GDP)
Source: (Fred.stlouisfed.org, 2018)
Year Imports: Value Goods
(Percent of GDP)
2000 11.03
2001 10.49
2002 11.27
2003 12.24
2004 14.26
2005 17.61
2006 19.42

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2007 19.81
208 25.36
2009 20.49
2010 21.83
2011 25.49
2012 27.17
2013 25.04
2014 23.15
2015 18.90
Table 14: Imports: Value Goods for India (Percent of GDP)
Source: (Fred.stlouisfed.org, 2018)
Figure12: Imports: Value Goods for Germany (Percent of GDP)
Source: (Fred.stlouisfed.org, 2018)
Year Imports: Value Goods
(Percent of GDP)
2000 25.29
2001 24.83
2002 23.38

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2003 24.00
2004 25.18
2005 26.95
2006 30.02
2007 30.57
2008 31.38
2009 26.89
2010 30.62
2011 33.13
2012 32.50
2013 31.37
2014 30.89
2015 30.98
Table 15: Imports: Value Goods for Germany (Percent of GDP)
Source: (Fred.stlouisfed.org, 2018)
iv)
Government Final Consumption of Australia, New Zealand, India and Germany (nominal,
Annual, Not Seasonally Adjusted)

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Figure13: Government Final Consumption of Australia based on 2010
Source: (Fred.stlouisfed.org, 2018)
Year Government Final Consumption
Index (2010=1)
2000 0.73600
2001 0.74900
2002 0.77100
2003 0.80000
2004 0.83800
2005 0.85600
2006 0.89000
2007 0.91200
2008 0.94900
2009 0.97100
2010 1.00000
2011 1.03900
2012 1.05400
2013 1.07500

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2014 1.07500
2015 1.12200
Table 16: Government Final Consumption of Australia based on 2010
Source: (Fred.stlouisfed.org, 2018)
Figure14: Government Final Consumption of New Zealand based on 2010
Source: (Fred.stlouisfed.org, 2018)
Year Government Final Consumption
Index (2010=1)
2000 0.70200
2001 0.73200
2002 0.74600
2003 0.77100
2004 0.80900
2005 0.86700
2006 0.90700
2007 0.94600
2008 0.98600
2009 0.99600

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2010 1.00000
2011 1.02800
2012 1.02300
2013 1.03700
2014 1.07200
2015 1.09900
Table 17: Government Final Consumption of New Zealand based on 2010
Source: (Fred.stlouisfed.org, 2018)
Figure15: Government Final Consumption of India based on 2010
Source: (Fred.stlouisfed.org, 2018)
Year Government Final Consumption
Index (2010=1)
2010 1.00000
2011 NA
2012 1.14300
2013 1.17300

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2014 1.25300
2015 1.26900
Table 18: Government Final Consumption of India based on 2010
Source: (Fred.stlouisfed.org, 2018)
Figure16: Government Final Consumption of Germany based on 2010
Source: (Fred.stlouisfed.org, 2018)
Year Government Final Consumption
Index (2010=1)
2000 0.88700
2001 0.89200
2002 0.90300
2003 0.90800
2004 0.90000
2005 0.90500

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2006 0.91400
2007 0.92700
2008 0.95800
2009 0.98700
2010 1.00000
2011 1.00900
2012 1.02000
2013 1.03400
2014 1.05000
2015 1.08000
Table 19: Government Final Consumption of Germany based on 2010
Source: (Fred.stlouisfed.org, 2018)
Using above data, gross domestic product (GDP) and government final
consumption of Australia, New Zealand, India and Germany will be described from the
year 2000 to 2015. GDP of each country is measured on the basis of 2010 price level.
Moreover, this report is based on annual data. But those are not seasonally adjusted.
After analysing the whole data set, it can be seen that GDP of Australia, New Zealand
and India are increasing continuously. GDP of New Zealand has also been increasing
since 2000. However, GDP of Germany has been fluctuating since 2000. In 2003 and in
2009 the GDP of this country has decreased.
On the other hand, government final consumption of Australia, New Zealand, India
and Germany has also been measured, based on the 2010 price level. This final consumption
level of Australia, New Zealand and India has been increasing at a continuous rate since
2010. However, this consumption level of Germany decreased in the year 2004. But after

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that, this consumption level has been increasing continuously. From those collected data, it
can be said that the economic condition of Australia, New Zealand and India are almost
same. Each country has been facing similar economic conditions since 2000. As the GDP of
those countries have been increasing continuously, the government have been increasing their
consumption level as well. However, economic condition of Germany is quite different. Its
GDP and government expenditure have been fluctuated for the last few years. Moreover, it
can be stated that the government of Australia, New Zealand and India have performed
efficiently. Hence, they do not face any decline in GDP growth rate. However, due to
external reason, the government of Germany could not perform efficiently. As a result, the
country has faced some fluctuations within their economic system.
Answer 3:
The annual inflation rate of Australia using consumer prices (Not Seasonally
Adjusted) is shown below.
Figure15: Annual inflation rate of Australia using consumer prices
Source: (Fred.stlouisfed.org, 2018)

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Unemployment rate corresponding to Australian citizens aged 15 and over for the
period 1980-2015 is shown below.
Figure 18: Unemployment rate of Australia (age 15 and above)
Source: (Fred.stlouisfed.org, 2018)
There is a relationship between inflation rate and unemployment level. Due to
inflation, a country can face recession period and higher level of unemployment. That
means inflation and unemployment rate of a country has inverse relationship. However,
this scenario cannot be seen in Australia (Argy and Nevile 2016). As inflation rate has
been fluctuated since 1980, the unemployment rate of this country has also been
changed. However, the change of direction for both inflation and unemployment rate is
not equal. During 1980 to 1983, the level of inflation was low. On the other hand, the
level of unemployment was also very low during this period. However, after 1984, the
level of inflation has increased in Australia. But the level of unemployment rate was
remained low. After 1990, again both inflation rate and unemployment rate of this
country was increased. Moreover, this unemployment rate has been fluctuated to a large
extend compare to unemployment rate of Australia. Hence, after analysing the whole

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trend a conclusion can be drawn. It can be said that there is not such relationship
between inflation rate and unemployment rate in Australia. As this relationship among
inflation rate and unemployment rate is describing a long-term between these two
factors, there is no relation between these.
Part B:
Answer 4:
Under long-run economic conditions, this aggregate supply curve is vertically
straight line. Hence, there is a unique level of wage, where employment level reaches to
its natural level (Cover, Enders and Hueng 2006, pp.777-790). Under this situation, prices
and wages are flexible. By equating this aggregate demand and supply curve in the
long-run, an equilibrium price level and real GDP level will be determined.
When government expenditure of a country decreases, the aggregate demand
curve will be shifted to the left. As, government expenditure is the component of
aggregate demand.

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LAS
LAD1
1
Price Level
Real GDP
O Y0
P0
LAD2
P1
Figure19: Shifting of Government expenditure in Long-run
Source: (created by author)
In figure 20, shifting of government expenditure is shown. The initial aggregate
demand curve was LAD1. As government has decreased its expenditure, the new demand
curve of the country will be LAD2. In this equilibrium situation, the aggregate price will be
decreased. The initial price level was P0. After shifting of AD curve, the new price level is
P1. However, the wage and price level are flexible in the long-run. Hence by adjusting both
price and wage level, the economy will produce its potential level of out by Y0.
Under short-run, the demand curve will be shifted to the left due to shortage of
governmental expenditure. Price and wage rate are not flexible. Hence, due to decrease in
demand curve, aggregate price level and GDP level will also be decreased.

27THE GLOBAL ECONOMY
Price Level
GDP Level
O
SRAS
SAD1
SAD2
P0
P1
Q1 Q0
Figure20: Shifting of Government expenditure in short-run
Source: (created by author)
In the above figure, aggregate demand curve shift to the left and the new demand
curve is SAD2. The new equilibrium level of price will be P1 and the new level of GDP will
be Q0. As price and wage are not flexible, potential output cannot be achieved in this short-
run period.
Part C:
Introduction
Mining sector of Australia is an important component for its economy. This primary
industry has huge contribution on national income of this country. This mining industry has
exported its outputs to other countries. The country has supplied large amount of iron ore,

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aluminium, nickel, copper, gold and silver and other important materials to other countries.
There are almost 270 mining sites all over the Australia. As the mining industry is developing
its export and the sector is developing itself, it is very important for a macroeconomist to
operate this sector carefully. For international trade, the economist needs to take important
policies.
Summary of role:
The role of a graduate student is to address economic data with its typical problems
that an economist normally faces. Moreover, a graduate student can implement some basic
empirical processes and also can interpret those statistical outcomes with economical
concept. Within this mining industry, the role data analyst is very important. A data analyst
analyse all statistical data to get an outcomes. Moreover, to analyse those data, statistical
knowledge is essential. Without, those calculated data, a macroeconomist cannot implement
any policy. At present, there are various software tools that help a data analyst to analyse
small data and big data easily. These software tools are R, SAS and Python and so on. . There
are some well-known institutions and online courses from where a student can learn basic
knowledge about these software tools. Moreover, for a data analyst, some basic concept of
economics is also needed along with statistical knowledge. During graduation period, every
economic student learns about basic concept of statists.
As a graduate student of economics, I have learnt basic statistical concepts related to
economics. Moreover, I have learnt SAS, SPSS and advanced excel during my study period.
However, my do not have any experience. Hence, I want an entry level job.

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Values
Data analytics has a great value in modern business environment. As there are huge
numbers of firms under an organisations, it is very difficult track all economical activities
without statistical analysis. Moreover, data analysis helps an organisation to trade
internationally.
Interest
I want to work as a data analyst as it has great career opportunity in upcoming years.
The demand for a skilled data analyst is growing day to day.
Personality
By becoming a data analyst, I can implement my theoretical and practical knowledge
by analysing various statistical data and its implications on a company.
Skills
I have learn SPSS and advanced excel. Moreover, I have learnt about statistical
analysis.
Video Refection:
In this interview, the economist has nicely described that why we study economics.
For describing this concept, the economist has described various interesting factors of
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The student can choose his or her career as a business analyst, project manager or as an