Macroeconomics Report: Economic Analysis of Recent Australian Events

This macroeconomics report provides an analysis of the Australian economy, focusing on recent events, GDP, labor market trends, and inflation. The report begins by highlighting current events, such as government investments in business events, deregulation in South Australia, and the construction of a Costco warehouse near Perth Airport. It then delves into GDP trends, illustrating the growth and fluctuations over the past two decades, with references to specific time periods. The labor market section examines unemployment rates, full-time and part-time employment, and gender-based employment differences. Finally, the report discusses inflation trends, noting the impact of food prices on the overall inflation rate. The report includes figures and references to support its analysis.

Running Head: MACROECONOMICS
Macroeconomics
Name of the Student
Name of the University
Author note

1
MACROECONOMICS
Table of Contents
Current Events............................................................................................................................2
GDP highlights...........................................................................................................................2
Labor market highlights.............................................................................................................3
Price level movement.................................................................................................................4
References..................................................................................................................................5

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MACROECONOMICS
Current Events
Recently a series of events has been taken place in Australia that affect the economic
and political environment of the economy. In order to open a greater prospect for global
business, exhibition and convention the trade, tourism and investment ministry has
announced to invest AUD $12 million over a period of three years (citmagazine.com 2018).
This is expected to provide Australia a greater competitive edge in the international platform.
In South Australia, a number of deregulation has undertaken to improve customer’s shopping
experience at supermarket. The Liberals want to provide retailers the freedom of trading
goods at any time they wish. The ruling party in South Australia has aimed at reducing
Emergency Service Levy and corresponding reduction in taxes (abc.net.au 2018). The US
retail giant Costco and Perth Airport have joined a project to build Costco’s first warehouse
in the close proximity of Perth’s airport. This is $55 million projects and is expected to boost
up approximately 475 retail and construction jobs in Western Australia (thewest.com.au
2018).
GDP highlights
Mar-1978
Sep-1979
Mar-1981
Sep-1982
Mar-1984
Sep-1985
Mar-1987
Sep-1988
Mar-1990
Sep-1991
Mar-1993
Sep-1994
Mar-1996
Sep-1997
Mar-1999
Sep-2000
Mar-2002
Sep-2003
Mar-2005
Sep-2006
Mar-2008
Sep-2009
Mar-2011
Sep-2012
Mar-2014
Sep-2015
Mar-2017
0
50000
100000
150000
200000
250000
300000
350000
400000
450000
500000
Real GDP
Quarters
Real GDP (in million dollar)

3
MACROECONOMICS
Figure 1: Quarter to Quarter movement in real GDP
Mar-1978
Aug-1979
Jan-1981
Jun-1982
Nov-1983
Apr-1985
Sep-1986
Feb-1988
Jul-1989
Dec-1990
May-1992
Oct-1993
Mar-1995
Aug-1996
Jan-1998
Jun-1999
Nov-2000
Apr-2002
Sep-2003
Feb-2005
Jul-2006
Dec-2007
May-2009
Oct-2010
Mar-2012
Aug-2013
Jan-2015
Jun-2016
-0.2
-0.15
-0.1
-0.05
0
0.05
0.1
0.15
0.2
GDP Growth rate
Growth rate
Quarters
Growth rate (%)
Figure 2: Quarter to quarter growth rate in GDP
 Real GDP in the last two decades has risen sharply in the last two decades.
 There is variation in growth rate. The highest growth is accounted in last quarter of
1996. However, in the first quarter of 1997 GDP fell to the lowest level
 The external sector is an important sector of the economy. Recently, the volume of
import has exceeded that of import resulting in negative trade balance.
Service sector being the most significant component of GDP has been affected by the
changes in most changes in Real GDP.
Labor market highlights

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MACROECONOMICS
199 1
199 3
199 5
199 7
199 9
200 1
200 3
200 5
200 7
200 9
201 1
201 3
201 5
201 7
0.00
4.00
8.00
12.00
Unemployment Rate
Unemployment
Year
Unemployment rate (%)
Figure 3: Trend unemployment rate over the past two decades
 Overall unemployment rate in the economy declines overtime
 Full time employment increases. Males are more likely to be full time employed than
their female counter part
 Females’ employment in part time employment dominates that of the males’ share in
part time jobs
Price level movement
Mar-1978
Jan-1980
Nov-1981
Sep-1983
Jul-1985
May-1987
Mar-1989
Jan-1991
Nov-1992
Sep-1994
Jul-1996
May-1998
Mar-2000
Jan-2002
Nov-2003
Sep-2005
Jul-2007
May-2009
Mar-2011
Jan-2013
Nov-2014
Sep-2016
-1.00%
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
Inflation rate
Inflation rate
Quarters
Inflation rate (%)
Figure 4: Trend in inflation rate

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MACROECONOMICS
The recent low inflation in Australia has contributed from a relatively smaller increase
in food prices as compared to other components of CPI.

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MACROECONOMICS
References
Citmagazine.com. (2018). Australia sets up $12million fund to bring in more business events.
[online] Available at: https://www.citmagazine.com/article/1459678/australia-sets-12million-
fund-bring-business-events [Accessed 23 Mar. 2018].
Mobile.abc.net.au. (2018). SA election: What has Steven Marshall actually promised to do if
elected? - ABC News (Australian Broadcasting Corporation). [online] Available at:
http://mobile.abc.net.au/news/2018-03-19/heres-what-steven-marshall-has-promised/
9562270?pfmredir=sm [Accessed 23 Mar. 2018].
The West Australian. (2018). Supermarket wars heat up with Costco’s arrival. [online]
Available at: https://thewest.com.au/news/wa/us-shop-giant-costco-to-land-at-perth-airport-
ng-b88755940z [Accessed 23 Mar. 2018].