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The economy of Australia has been experiencing a positive growth. In particular, the economy of the nation has indicated extraordinary and remarkable progress devoid of going through a single recession for over two decades. This is a record that is unmatched by any other nation across the globe. The Australian economy has seen incessant growth and this has encompassed low unemployment rates, inflation that has been kept in check, considerably low public debt, and a financial system that is comprehensively strong and stable. For more than two decades, the economy of the nation has experience an average GDP growth rate of 3.5% every year. This growth rate has largely surpassed all other economies of major developed nations. For instance, the United States has an average growth rate of 2.6%, Canada having 2.5% and the United Kingdom having 2.2% (Tang, 2016). This can be illustrated in the diagram below.Source: Trading Economics
Source: Focus Economics
This remarkable progress is owing to the fact that Australia was relatively not affected by the global financial crisis, taking into consideration that the financial and banking system of Australia continued to be strong and the rate of inflation under control. The greatest share of the...
One of the elements contributing to the Australian economic growth encompasses the increase in demand for raw materials from emerging nations. This in turn has given rise to a considerable rise in global commodity prices, and has had a largely significant role in the changing aspects of the Australian economy. Accompanied by higher terms of trade, which sparkled a considerable rise in the purchasing power of family units, the upsurge in commodity prices instigated a thriving in mining investment, for the most part coal and iron (Focus Economics, 2016).
The economy of Australia is largely dominated by the service sector and it encompasses about 65 to 70% of the GDP. According to Tang (2016), the nation's financial services industry is presently the biggest supplier to Australia's production, creating approximately 9.4% of the total gross value added to the nation's gross domestic product. However, the recent economic growth and success is largely centered on the mining industry, which represent about 14% of the GDP and also the agricultural sector, which signifies 2% of the GDP, taking into…
The clarification of the timeframe before the inflation will return to the level that has been targeted following the shock of employment rate shifts is "the horizon of the policy rule." (McDonald, nd; 73) Inflation rates grew for two years while interest rates were rising and yet unemployment was lowering during this time. In the United States, it can be noted as well that while unemployment rates grew inflation
Australian taxation system involves the payment of taxes in various forms since individuals and businesses in the country may be required to pay these charges to all governmental level sie. local, state, and federal governments. The main reason for collection of taxes in the Australian taxation system is that the collected taxes are used to cater for public services and facilitate redistribution of financial wealth. The most significant form of
Economic Systems: An economic system is basically described as specific set of principles that addresses the production, distribution, and consumption of products and services. The involved parties in the production, distribution, and consumptions processes are usually determined by or dependent on the economic system. Throughout the history of humanity, different types of economic systems have evolved because different societies have placed varying emphasis on distinctive goals and priorities as part of
Economics While the U.S. is only showing the first signs of recovery from the global economic crisis, other nations such as Australia and China have recovered much more quickly. There are a number of factors that have contributed to the disparity in economic performance in the past three years in these different nations. In particular, three factors will be considered. The first is the situation in each country at the outset
Australian Securities Exchange and Interest Rates The Australian Stock Exchange (ASX) and the Australian Stock Exchange Index (ASX 200) comprise a heavily traded securities, debentures, derivatives, and FOREX market that has grown precipitously over the past decade. Additionally, the monetary policy of the Australian Federal Reserve has facilitated economic policy in favor of growing its companies represented within the ASX 200 index. The truth is that all central planners adjust rates for
Australian Carbon Tax The introduction of a carbon tax in Australia would have clear implications for economic and environmental sustainability. While in the long-term, the aim of such a tax seeks to promote environmental sustainability for Australia as a whole, in looking at the short-term, there appear clear implications for economic sustainability for a wide variety of businesses and households. One such area of business that seeks to be affected in