ECON101: Australian Economic Issues, Impact, and Government Action

This report provides an in-depth analysis of key economic issues affecting the Australian economy. It identifies and examines two primary issues: inflation and environmental sustainability. The report explores the impact of these issues on various aspects of the Australian economy, including GDP, population, and business sectors. It also delves into the actions taken by the Australian government to address these challenges. The report highlights the significance of inflation as a macroeconomic issue, discussing its effects on price stability, economic growth, and business performance. Additionally, it addresses environmental sustainability concerns, focusing on climate change and conservation efforts. The report includes illustrations of inflation, GDP, population, business, and environmental sustainability. The report concludes by summarizing the key findings and implications for the Australian economy.

ECONOMICS OPINION
PIECE

Table of Contents
INTRODUCTION...........................................................................................................................1
Impact of economic issues on Australian economy and management of issues by Australian
government..................................................................................................................................1
CONCLUSION................................................................................................................................8

Illustration Index
Illustration 1: Inflation in Australia.................................................................................................4
Illustration 2: GDP Of Australia......................................................................................................5
Illustration 3: Population in Australia..............................................................................................6
Illustration 4: Australian businesses................................................................................................7
Illustration 5: Environment sustainability......................................................................................10

INTRODUCTION
Economic problems are affecting a whole economy that needs to be identified as soon as
possible in improving current development requirements. This report emphasises on selecting
two economic issues that are inflation and environment sustainability. This report is all about
explaining impact of all the issues on the Australian economy also depicts the action taken by
Australian government in order to resolve the issue.
Impact of economic issues on Australian economy and management of issues by Australian
government
Economic issue
Economic growth of a country is an economic issue as this is associated with various
factors which needs to be considered by the economy. The increase or decrease in the current
economic structure will in turn related lost of changes on other aspects connected with them.
Higher economic growth shows the ability of an entity as it shows the efficient areas on which
all the business users located in an Australian economy focuses in order to generate higher
revenues by boosting the performance of existing factors included in a whole economy.
Economic growth of Australia will be determined by an individual entity
throughemphasizing on various aspects associated with it. Entity owner will analyse all the
factors and their current position in order to determine the actual economic growth of a country.
Several factors on which the current status of economic growth of Australia depends are
inflation, GDP, population and business.. The actual condition of an economy will be easily
determined by verifying all these factors andlinking their performance with the current
economic growth rate of Australian economy.
Inflation
Inflation is regarded as biggest issue suppressingiAustralian Economy, as it depicts the
price stability, it come into existence when prices of all the products remains the same over a
certain period. The increase in price at lower or decreasing rate shows the deficiency of a whole
economy and its inability to manage price fluctuations. These fluctuations need to be regulated
as this will directly affect the overall performance of a country (Yadav, Singh and Kumari,
2015). In economic terminology, inflation comes under macroeconomics. Related with the price
of product which decreases in relation to a demand for that product. Economic performance of a
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country needs to be identified in advance as the individual performance of a business is linked
with the overall country's performance. Factors are required to be identified that are held
responsible for inducing the existing market status. Various sectors, their skills and the
capabilities are required to be analysed as they can affect an entity's entire performance. Goals
and the objectives of a business are created in accordance with its current market position. The
market position of a business is highly concerned with outcomes generated by it after beating all
the market rivals existing in the industry.
Population
Another important factor that needs to be considered by an economy while assessing the
existing economic growth rate of a country. aAnalysis of al the factors related with the positive
or negative performance of an entity will be identified for upliftment of current business
conditions in the economy. . Gross domestic product shows the revenue generated by an
economy from its domestic manufacturing of various goods or services.. GDP of Australia is
1339.54 Billion currently which shows the higher performance of the economy. Who managed
all its negative actions by promoting positive aspects. The GDP value of Australia presents 2.16
% in relative form. Various increasing changes have been noticed in the current GDP level
compared to previous period. This increment shows all the efforts applied by an economy in
inducing its performance which in turn created its entire value on a global level (Leuz and
Wysocki, 2016).
Population of Australia also participated in inducing or suppressingits economic growth
as the businesses are affected by increasing population. . Demographical segment of this country
shows various backgrounds and ethnic group of people located in Australia. Current population
of Australia is around 24,487,300 in 2017. country ranks 52nd position in terms of most
populated country in the whole world. The current position of this country shows that current
population of this country is overcrowded. It will benefit the economy in terms of providing
employment opportunities, generating revenue through taxes to the Australian government.
Exploring different opportunity is regarded as one of the important factor which will be consider
by an entity owner. The population in a country will inspire business in order to expand their
current market share. The same country or in country on global level in order to induce the
economic growth rate of their host country.
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Business sectors
Business sector in Australia is Uncertain as no one can predict the actual condition of the
business with the external market changes. The scope of the business has been contracted due to
higher imposition of inflation incurred in the economy. It forced all the investors to withdraw
their share from the firm. The current step taken by all the investors decreased the overall brand
image of enterprise in external business environment (Bone, 2017). The reaction of firms in an
economy is negative as the inflation has affected its overall performance in terms of contracting
its entire market share. All the investors are withdrawing their investments from entity as in an
inflation an entity has scope of earning. Decreasing chances of revenues and returns entire
growth of business also gets reduces which in turn decreases the brand image of an entity in the
external business environment.
Inflation is not treated inpositive sense as this affects an economy only in negative sense.
This creates lots of changes in the balance of payments sector as the import or export is heart of
every country. They earn most of the sales and the revenue through exports and therefore the
main motive is to minimise its current imports by maximising its current exports from the
country to other sectors of world. An entity generates higher revenue with the help of these
import or export but due to decreasing prices in a country this directly affected the balance of
payment. Thus, creating negative changes in the balance of trade as the negative ash flows are
increases in relation to the positive cash inflows in an entity.
Impact of Economic growth on Australia
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Illustration 1: Inflation in Australia
(Source: Australia joining low inflation world, 2016)
It is evident from the above graph that inflation rates are declining from one period to
another period. It shows the ability of an entity to generate higher returns by managing all kinds
of costs incurred in a country. Consumers would be very happy with the current state as lower
inflation rate will generate higher returns for the entity. In order to produce higher returns, but
increasing interest rate remains one kind of challenge for an economy that needs to be improved
with the passage of time (Chapra, 2016). The current inflation rate of Australia has been
compared with other countries' economy.It is found that their inflation rate is higher by 1% that
shows the higher performance of Australia. The economic growth of Australia is less than
compared to the inflation rate shows the negative impact. The officials of a country are not
capable in managing the economic condition of a country. It has been noticed 2.1% in first
quarter which shows less imposition of inflation pressure on a country reflects the ability of
Australia in generating fewer rates (Chapra, 2016). The reason behind the current inflation rate is
fewer costs incurred in theeconomy . Australia emphasises on identification of all the symptoms
held responsible for this uncertain action in order to improve their overall performance within a
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given span of time. In relation to the current inflation rate, it has been found that increase in the
current inflation rate is less.The costs of transportation and food or beverage is increasing year
by year which are regarded as the common areas where large population spend their money
(Leuven and Sianesi, 2015).
Economic growth of Australia has risen by 1.7% which is less than compared to the
inflation rate in the country show the deficiency of the system in managing the uncertain action
imposed on an economy.
Illustration 2: GDP Of Australia
(Source: Australia GDP, 2017)
Gross domestic product of an Australia reflects its skills and capabilities that are used in
order to generate higher returns over a certain period. GDP is taken as important factor of
increasing or decreasing the entire economic growth of Australia.Desired aims and the objectives
of a country need to be satisfied properly in order to grab higher market advantage on the
external business environment. Various categories of GDP will affect an economy's overall
performance such as growth rate which is increasing from 0.30% to the highest rate of 4.40%.
Annual GDP growth rate also increases as this is occurred due to higher efforts applied by an
economy in improving the overall performance of all the business located in a country. GDP rate
is 2.16% which is higher than compared to the inflation rate and also higher than the economic
growth rate.
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Illustration 3: Population in Australia
(Source:Australian Demographic Statistics, 2017)
Demographical structure of Australia shows the status of population of Australia by
covering all important segments of Australian country. It can be evident from the data statistics
that is in total 1.5% changes has taken place in the population of Australia. The Highest changes
in the population has done in the area of Victoria in Australia which is famous for housing real
estate attracting majority of people from all across the world. This increases the revenue in a
country which in turn helpful in increasing the current economic growth rates.
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Illustration 4: Australian businesses
(Source: Counts of Australian Businesses, 2017)
Businesses of every economy generates higher sales and the revenue for a government as
the income generated by an entity in a particular year. Taxes charged on the income of a business
produces tax revenue for an economy. The efficiency of all the Australian businesses are
assessed in relation to the three parameters such as net entry rate, entry rate and exit rate as these
will induce the strength of an economy. Structural challenges have created negative impact on
the normal and daily routine functioning of entire economy. Competitive pressures faced by
Australia need to be recognised at the initial stage as speculation of prices is regarded as the
basic motive of the entity in order to gain competitive advantage in the external business
environment. Pressures of the external environment are required to be identify by the officials of
the government as their main motive is to improve the overall business performance of an entity
within a given span of time (Bone, 2017).
Environment sustainability
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Climatic change is regarded as one of the important issue that comes under the category
of sustainability of environment. Climatic changes created loss of changes for all the local
residents of Australia decreasing the total visitor's count in this country who visit this country for
enjoying their holiday properly. Environmental conservation is another important issue in
Australia that needs to be managed properly by considering all the factors that enhances the
overall value of a country by enhancing the overall worth of the whole economy (Capaldo,
Izurieta and Sundaram, 2016). Conservation in Australia is related to the procurement of
precious fauna found in Australia along with the flora that are the speciality of this particular
place. This is one of the biggest issue in Australia as it has poor record of keeping all the native
fauna within this particular country for long period as most of the animal species are extinct.
Marine conservation is also regarded as the major issue as in this important species are required
to be safeguarded in order to improve the value of a country. Country maintains its marine
environment by taking care of each and every species of marine by feeding them properly and
also take care about their health and well being. As disinfect specie will affect the whole species
that needs to be identified properly in order to separate all the species which proves dangerous
for other living beings or mammals.
Impact of environment sustainability on Australia
The condition of the environment sustainability is poor as it has degraded the whole
environment as the temperate zone of Australia along with its coastal system. The existing
condition of the Australian environment will be analysed as this will affect its overall
performance. Increasing deforestation in Australia is reducing the quality of land as it increases
the number of barren lands that can't be use for commercial purpose. Resultantly this decreases
the source of production for a country which in turn affected a country in bad manner. With the
increasing number of deforestation, 7% of the agricultural area has captured in the current
uncertainty. According to the study of CSIRO that staffs for commonwealth scientific and
industrial research that costs of degradation of land is costs around $1 billion that imposes
immense burden on an individual (Capaldo, 2015). Current burden imposed on the entity needs
to be managed properly as this affects a country in negative way. Estimation of all the costs is
essential at initial stage, as economy will protect its interests by recovering all kind of costs with
the improvement of all the existing business operations in the best possible manner.
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Illegal fishing is one of the activities covered in Australia which are not restricted by law
but these practices needs to be managed in order to reduce its pressures. Overfishing practices
needs to be regulated as this is affecting the existing marine environment.Overfishing up to a
certain limit l affects all the water species. Any act out of the legal permission is termed as illegal
in the eyes of law.
Increasing pollution in a country will increases the global warming which in turn create
changes in a climatic condition that are required to be managed properly. Normal life of all
individuals such as local residents as well as animals got disturbed with the climatic or weather
changes takenplace in Australia. It affected economy in economical way as majority of visitors
or tourists will not visit this place due to frequent changes takes places in its weather.
Sustainability indicators will be identified as this would help an individual in order to
understand the current pressure and its effect on the overall environment of Australia (Setterfield
ed., 2016). Various themes have developed in order to manage the conditions of all the factors
covered under environment sustainability such as skills and education, health and institutions and
governance.
Sustainability programs are created by government officials in order to improve existing
society as their focus lies on generating higher output by using less input. The major themes
prepared by the officials includes social and human capital, natural capital and economic capital
as these three major categories would cover all important themes under which various policies
are planned by a country in improving the current conditions.
Management of Issues by government
Australian government has specifically launched new policy in order to reduce the impact
of environmental issues currently faced by an environment. Sustainable development is that
process in which present needs of all the users are fulfilled in such a manner without
compromising with the needs and expectations of the future users. Environmental sustainability
policy emphasises on analysing all present resources as all these resources are improved in
relation to various parameters selected by a country (García and et.al., 2015). Weaknesses or
problems of environment are taken as important measures of the improvement. Standards in form
of code of ethics are required to be followed by a country resident in order to avoid negative
impact of economic issue on their daily routine. Environment management issues which are
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