Comprehensive Report: Australia's Economy, Trade, and Sustainability

This report provides a detailed analysis of the Australian economy, focusing on its state before the COVID-19 pandemic and its subsequent impact. It examines key economic indicators such as GDP, unemployment, and inflation, highlighting the government's stimulus packages across infrastructure, education, healthcare, defense, and research and development. Furthermore, the report evaluates Australia's international trade policies, emphasizing its position as a major exporter of iron ore, agriculture, and coal, and the benefits of free trade agreements. The analysis also includes an examination of the country's sustainable policies, aiming to understand how Australia aims to maintain its market position. The report concludes with a synthesis of these factors, offering insights into the resilience and strategic direction of the Australian economy in a global context.

Global economy

Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
1. Examination and evaluation of the national economy of the Australia before the pandemic
that is COVID-19 struck the whole world...................................................................................1
2. Analysis and evaluation of the international trade policies of Australia that proves beneficial
for it to capture the larger share of market in the present as well as in the future context..........4
3. Identification and examining the sustainable policies of the country that helps it to sustain in
the market for a longer time period.............................................................................................6
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Global economy is one of the most important as well as critical aspect since its helps in the
merging of the domestic economy with the global one and thus opening ways for the companies
to expand their business in the global market that can subsequently help them to increase their
level of sales and profitability in the long term scenario and thus making the firm to grow and
develop in the industry in which it is operational (Abraham, 2016). Australia is a country that
possesses a lot of importance in terms of global context since it is located at a very crucial point
and thus it becomes much more essential for it to analyse and evaluate all its aspects so that it
can lead to the overall development of the country as well as other nations. COVID-19 is a
pandemic that affected the whole world and is one of the major reasons for the decline in the
growth and gross domestic product of all the major countries all across the world. The pandemic
forced all the nations to go for a stick lockdown so as to overall all the negative consequences of
the virus and thus it affected all the activities of the industry. In this report there is a detailed
discussion done of the various factors that are associated with the market of Australia and the
possible impact of the COVID-19 pandemic in the country. Apart from that the report covers an
analysis and evaluation of the national economy of the above mentioned country before the
pandemic in a very systematic and sequential manner so that comparison can be done on a
factual basis. Further the report covers different aspects like the international trade policies of the
country including all the major factors that are associated with it in the long term context and
also the report consists of examination of the sustainable policy of Australia that includes various
aspects of it like measures that has been taken by it so as to improve the current positioning of
the nation so that it can help in the overall growth and can help in the achievement of the desired
goals and objectives and that too in a limited period of time frame.
MAIN BODY
1. Examination and evaluation of the national economy of the Australia before the pandemic that
is COVID-19 struck the whole world
Australia is one of the most successful economies in the world as it is constantly growing
in terms of the economic context and there were no interruptions in the operations of it since the
authorities make appropriate plans that are effective and efficient too which helps the country to
grow and prosper in the long term market (Adler-Nissen, Galpin and Rosamond, 2017). It can be

seen that the economic factor that is the gross domestic product of Australia was around 2.8
percent while it dropped below -4.5 percent due to the ill effects of the pandemic and was pegged
at -4.8 percent. The unemployment rate of the country was also not too high as it was hovering
around 5.5 percent in the previous year but after the COVID-19 pandemic it slipped and goes
above 6.9 percent while similarly the rate of inflation was also not that much in the previous
years as it was around 1.9 percent that dropped below 1 percent and was pegged at 0.7 percent at
the end. The amount of foreign reserves with the country was more than the national average of
the gross domestic product but it also saw a decline due to the effects of the virus since all the
economic activities are shut and thus due to this unemployment level cam to its peak in that
period making the government to think various stimulus packages so that it can help the citizens
that are living in the nation. Australia is a country that was placed at a very good position in the
industry before the COVID thing and is operating in a very skilful and effective manner that
helped the citizens of the nation to increase and simultaneously improve their standard of living
so that they can contribute towards the growth of the country as well which can prove beneficial
for the country as well as the individuals that are living there (Australian Government-
Productivity Commission, 2017). There are a number of stimulus packages that are started by the
government of Australia for the people as well as the companies that are working their so that
they can attain the goals in a short time period and can subsequently contribute in the
development of the nation as well which can prove helpful for it to stand well ahead of all other
countries that are existing in this world. It tends to promote the good work by providing various
subsidies and contribution towards the firm that are operating for the overall growth that is not
just for the company itself but for the larger aspect by taking whole nation’s interest with it. Thus
it promotes the work that is done in favour of the nation and also encourages others contribution
as well in it. The main areas in which the government of Australia provides stimulus packages so
that it can prove beneficial in the long term growth are explained in an elaborated manner below-
 Infrastructure- It is one of the foremost part of each and every country and Australian
government keeps a tab on this aspect so that proper infrastructure facilities can be
provided in the nation so that countries that are popular worldwide can invest in the
country which can help it to generate larger amount which will further improve the
conditioning and GDP of the nation as well. The amount of stimulus packages that the
government stated in this regard so that it can develop an infrastructure which can prove

useful for firms is around $300 million and the government tends to increase it more after
a detailed evaluation of the market conditions that are prevailing currently.
 Institutions- The universities are an important part of every country since it helps to get
people educated and well knowledgeable so that it can help them to earn their living in an
impactful manner and also it can subsequently help in the growth of the country’s GDP
as well since they are interrelated with each other as the standard of living increases
spending also increases and thus benefiting the individual and the nation too. Australia
spends a lot in the education sector and thus provides a number of stimulus packages to
the industry so that it can benefit in attracting foreign students as well which can help the
government to boost its economy and that too within a shorter time frame. The current
package that is granted in this field is around $250 million (Blackburn and Gartner,
2017).
 Healthcare- It is a prominent sector since it can help in increasing the life expectancy
rate. It is regarded as the most essential aspect and every country spends a lot in this
sector since it is said to be the core of any nation and Australia too spends a decent
amount so that it can increase and improve the current status of its healthcare industry by
giving subsequent stimulus packages. The country spends a lot on buying equipments
that are of latest technology so that it can help to treat all the diseases in a prescribed
format. The amount of package that has been allotted in this sector is around $325 million
and the government keeps a decision on the spending every year so that it can be
increased or remain constant.
 Defence- It is a sector that protects the integrity and sovereignty of a nation and thus it
becomes very much crucial and critical at the same time to invest an appropriate amount
in this sector so that it can protect the harmony and can maintain the peace in the country.
Australian government tends to keep a fixed amount for this sector much more than what
is required by it so that in case of emergence the additional funds can be utilised in an
appropriate manner. The main spending that the government does is on the procurement
of the latest technology weapons so that it can protect the boundaries of the country in an
effective and efficient way and thus the stimulus package on it is around $950 million.
 Research and development- It is a sector that is very crucial since it helps in improving
the current position of the country by using latest technology. The main part of research

and development in which the Australian government spends is the space sector so that it
they can find out new ways to reach different planets and can study in detail about the
existence of various things. Since Australia is located near Antarctica and thus it is easily
accessible to it so the government also encourages various programs so that a team of
experts can do a detailed R&D in that area to know the different things in a much better
manner and thus the stimulus package that has been allocated on it is around $500 million
(Bringezu and Bleischwitz, 2017).
2. Analysis and evaluation of the international trade policies of Australia that proves beneficial
for it to capture the larger share of market in the present as well as in the future context
The trade policies of a country possesses a lot of importance in the market as it helps to
import and export necessary items as well as the things that carriers a lot of value in the
international market. The country that is mentioned above which is Australia is located at a very
good location as it can use the sea and air route to the most effective and efficient manner. The
railway rout is also used by the nation in a very systematic manner so that transportation of
goods and services can be done in an appropriate way. There is a number of partner’s of
Australia in terms of trade since the country is the world’s largest exporter of iron ore as it is
abundantly available in the nation. The agriculture industry of the nation successfully feeds more
than 600 million people all around the world and the coal is also exported by the country to the
rest of the world’s countries. The concept of international trade also benefits the overall economy
and prosperity of the whole country as it helps in generating enough employment opportunities
for the persons that are living there so that they can be able to earn their living and can spend on
the various goods and services which can further improve their standard of living and can also
proves beneficial in the economic growth of the nation. Australia also trades for free with a few
countries under the free trade agreement act so that it can improve the harmony between the
various nations with Australia which can help the country to increase its overall market value in
the long term context. The country also implies some tariffs on the imports and exports of the
goods and services so that it can keep a tab on all the transactions that takes place which is very
crucial in analysing the overall performance of the nation in the long term. Apart from that the
government of Australia also formulates and implements some rules and regulations on the
imports so that it cannot result in losing the foreign reserves of the country and also to check the
quantity of the goods that are imported by the companies and the citizens of the nation. There are

a number of different countries that are directly associated with Australia and its trade policies
since it is located at a place that is very crucial and has a lot of important reserves in the country
that makes it one of the most valuable trade partners for other nations (Cashin, Mohaddes and
Raissi, 2016). There are various countries that directly trade with Australia but the ones that
possess a lot of importance are the nations like United States of America, China, Vietnam,
Philippines, Thailand, Malaysia, Chile, Japan, Mexico, and Japan and thus they these nations
compromises of a major portion of the trade that has been done on an overall basis. The imports
of goods in the year 2019 for Australia was around $222564 million while its export of goods
amounted to around $271005 and thus it can be seen from this that the country imports less but
exports more and thus it is one of the main reasons for its huge success and financial stability in
the worldwide context and since the market is highly competitive and dynamic in nature it results
in improving its standing as it is placed at a very good position. Whereas the imports of services
amounted to around $70228 while the exports of services amounts to $69168 in the year 2019
and thus it can be said that in this context the country’s exports are less than the imports but the
government is implementing various steps so as to improve its process of operation to a larger
extent. In terms of percentages China stands at the top position in terms of both exports and
imports while the exports are 38.7 percent of the total and the imports are 25.7 percent of the
total. Other countries that are also important are Japan at 14.8, South Korea at 6.6 percent,
United Kingdom at 4 percent and United States at 3.8 percent respectively in context of the
exports. In terms of imports other nations are United States at 11.8 percent, Japan at 7 percent,
Thailand at 4.8 percent and Germany at 4.8 percent respectively. As the exports and imports of
the country are rising on a day by day basis the government of Australia decided to implement
various protectionist measures so as to carter the needs of the small and medium business
operators that can be vanished by facing the stiff competition from the higher valued firms. The
things that are done in this context is that the government capped a base price below which one
cannot sell a product so as to protect the interest of the companies that are operating in the
country. The other things that has been done by them is there is a floor price mentioned above
which one cannot import or export and thus binding the hands of big firms and resulting in eth
improvement of the overall working since it helped the small and medium companies to operate
in a much better, effective and efficient manner (Chand and Tung, 2019).

3. Identification and examining the sustainable policies of the country that helps it to sustain in
the market for a longer time period
Sustainable policies are one of the most important part of each and every country since it
helps to achieve the goals and objectives that are made at the starting by keeping the
environmental factors in mind so that it can help in improving the present condition of the
environment too which is very necessary in the current scenario (Chen and Wu, 2017).
Australian government has made a lot of decent efforts in this regard so that it can operate in an
sustainable format and can so that it can prove beneficial in reducing the carbon footprints and
greenhouse gas emission so that ozone layer can be protected from further depletion. The biggest
challenge in Australia is the change in the climates because of the geographical position of the
country in the world and thus as a result of it many species are on the verge of extinction which
is an important issue that has to be solved within a short period of time. There are a number of
different policies and acts that are initiated and implemented by the government of Australia so
as to meet the sustainable position in the world and thus the various policies that possess a lot of
importance in this regard are explained in detail below-
 Environmental reporting- It is an act that is formulated so as to provide a detailed and
summarised report on all the sustainable performances of the government and various
agencies so that an analysis of the same can be done in order to achieve the targets in a
well prescribed format. It an act that was formulated under the section 516A of
Environment Protection and Biodiversity Conservation (EPBC) Act in the year 1999
(Mahar, Longridge and He, 2016).
 Sustainable procurement- It is a policy that is related with the lesser wastage and better
management so that the resources that are available can be used in an effective and
efficient manner which can prove useful in reducing the cost and improving the overall
performance when taken as a whole. In it various strategies are made so that the waste
can be recycled and reused so that it can help in accomplishing the main motive of
sustainability.
 Environmental management system- It is a system that is solely developed so that it
can help in the management of the environmental aspect which is very essential in the
present time. This system helps in improving the overall effectiveness and efficiency in

the activities that are performed so that it can lead to the growth and development as a
whole (Siriwardana and Nong, 2018).
 Aboriginal and Torres Strait islanders- It is a policy that is formulated so that the
government can improve the overall well being including the health of the persons that
are living in aboriginal and Torres Strait area. The policy also contains a lot of parts
including various aspects that there should be no discrimination on any basis and apart
from that the gap can be filled with respect to the gender issue that is prevailing there so
that gender equality can prevail in the country.
 Ageing- This policy is related with providing all the facilities to the older citizens so that
they can live in a peaceful and happy manner in the nation and the things that are
provided by the government of Australia is giving a minimum wage to a certain class of
people that are not able to make their living. Also it includes providing better home care
and health facilities so that life expectancy can be increased (Strodthoff, 2019).
 Animals and biodiversity- In this policy different strategy are formulated so that
animals that are on the verge of extinction can be saved and the ones that are in red zone
can be taken out of it.
 Energy- It is one of the most important aspects and it is related with the usage of the
renewable sources of energy for the production of goods and services so that it can help
in reducing the pollution that is generated in the absence of it. Also the government of
Australia encourages people by providing various subsidies in this regard so that the
nation can become altogether sustainable (Zeller and Dahdal, 2021).
 Transport- It is a policy in which the Australian government tries to build an intact rail
and bus networks so that a lot of persons can travel by this and thus reducing the
pollution that is generated by using personal vehicles. Also bicycle network is also made
much better so that individuals can be encouraged to use more of it which can help in
improving their physical as well as mental health and would also prove useful in reducing
the pollution in the nation.
 Sustainable population and immigration- This is a policy in which the population
aspect is kept in mind and there are many further strategies that are implemented in it so
as to keep a tab on it which is very essential to build sustainability in the country. Also

immigration is capped at a level so that it can lead in providing a better workplace rather
than hampering it in the long run.
 Planning and development- The government of Australia plans for many things well in
advance so that it can result in the overall growth of the nation as a whole and the most
important thing in it is to improve the conditioning and positioning of the country and
thus it does a lot of things in this aspect starting from providing excellent infrastructure to
giving appropriate subsidies according to the needs and requirements (Zhao, 2020).
CONCLUSION
It can be concluded from the above that Australia is placed at a very good position and has
performed considerably well in all the aspects and thus it is one of the reasons for its huge
success in the market. Apart from that it can be concluded that though there are many
consequences of the pandemic that affected the whole world but still Australia has done
commendably well in overcoming all the ill effects of the COVID-19 pandemic. Further it can be
concluded from the above that the internal trade and sustainable policies possess a lot of
importance for it because of its geographical location though there are some loop holes in its
operation but with the help of proper analysis and evaluation all the things can be performed in a
much more effective and efficient way.

REFERENCES
Books and journals
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market volatility: Is world growth losing out?. International Monetary Fund.
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Global Warming, 16(3), pp.261-280.
Strodthoff, I., 2019. Rethinking the Chile–Australia Transpacific Relationship in Light of
Globalisation and Economic Progress. In Mapping South-South Connections (pp. 111-
141). Palgrave Macmillan, Cham.
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