Report: GDP Growth and Economic Development in Australia - 2018

This report examines the factors influencing Australia's GDP growth and economic development. It highlights the continuous economic growth since 1991, while also addressing the challenges posed by an ageing population, which leads to a smaller workforce and increased government spending on pensions and healthcare. The report analyzes the impact of the ageing population on the labor market, government finances, and the broader economy, including wage inflation. It concludes that promoting productivity and workforce participation, along with increased government funding for healthcare and aged care, is essential for maintaining a strong GDP growth rate. The report also emphasizes the importance of investing in human capital to support economic growth.

FINANCE AND
ECONOMICS
GDP Growth and Economic Development
in Australia

Introduction
 The GDP in Australia extended 2.30% in the 4th
quarter of 2018.
 Australia is having uninterrupted annual economic
growth from 1991.
 The GDP annual growth rate in Australia remains at
average of 3.46% since 1960s (Australia Unlimited,
2018).

Problem to be deliberated
 The problem is caused in the Australian
economy by ageing population which leads
to the slower economic growth (Uddin, Alam
& Gow, 2016).
 This proportion of the population is mainly of
the traditional working age falls.
 The ageing population contribution rate is
anticipated to fall inhibiting to the workforce
growth.

Continued…
(Projected participation rates)

Definition and Explanation of
the key terms
 The ageing population presents challenges to
the labour markets, government spending,
government tax and the extensive economy.
 The ageing workforce hit the economy in
various ways.
 The ageing population increases spending of
the government on the pensions and health
care.

Results and analysis
 The ageing section in Australia tends to pay
lower income taxes as they are not working
after the retirement phase.
 The pension spending as percentage of GDP
has increased from the past years in the
country.
 The ageing population causes shortage of
workers and as a result, push up wages cause
wage inflation.

Conclusion
 The growth in the GDP can be promoted by the
enhancing productivity along with the workforce
participation.
 The government should provide wide funds for
the health, aged care an the concerned
expenditures in order to support aged workforce.
 The Australian government need to spend more
on the human capital so that good rate of GDP
can be maintained.

References
 Uddin, G. A., Alam, K., & Gow, J. (2016).
Population age structure and savings rate
impacts on economic growth: Evidence from
Australia. Economic Analysis and Policy, 52,
23-33.