Comparing The Australian And Indonesian Economy

Australia’s economic status can be assessed using a range of economic indicators such as unemployment rates, Gross Domestic Product (GDP), inflation rates and interest rates. The economy can affect Australian business’s greatly causing them to flow through the business cycle. The business cycle purpose is to describe the overall trends of the economy and can show growths of high or negative. The four stages in a business cycle are: expansion, this is when the economy has high demands; peak, this is the turning point of the expansions before the economy falls down. A contraction is when the demand for goods and services are low; and trough, is the opposite of a peak. To evaluate Australia’s current economic status factors such as unemployment

Both countries currently have a similar GDP annual growth rate. (Australia GDP annual growth rate – 2.5%, Singapore GDP annual growth rate – 1.8%)

All economies are trying to solve the same problem; how do we satisfy our unlimited wants with our limited resources? Since all economies are working to achieve a solution to the same economic problem, they have resulted in similar economic structures, although this was not always the case. Therefore, economists must compare economies around the world, such as Japan in order to see and understand how Australia’s economy develops, performs and operates. The advanced Japanese economy and the largest mixed market economy; the Australian economy have many similarities and differences in many areas. These include; the distribution of income, environmental sustainability, economic growth and quality of life, employment rates and the role of the government in providing healthcare, education and social welfare.

Economic development refers to the sustained actions of communities, federal, state, and local governments that improve our standard of living through the creation of jobs, new technologies, economic health, and the creation of an overall better quality of life. The comparison between the Australian economy and the Chinese economy provide a detailed and comprehensive view of both nations. China is of political, cultural and economic strategic importance to Australia. Economic growth, employment/unemployment, environmental sustainability, the role of government (in health care, education and welfare), and quality of life determine the economic development of a nation.

Economic impact is driven by factors such as the Exchange rates and the value of the Australian Dollar, the conditions of inflation and recession, the Cost of labour in the manufacturing sector, technological changes in manufacturing, the economic cycle and the political environment Kellogg’s has a company strategy to expand and increase market share and profit that is based on its fundamental strengths of being a Global cereal leader, Global snacks player and a emerging focus on frozen foods

In 2015 Australia had an inflation rate of 1.70% (Australia Inflation rate, 2016) and Indonesia’s was 4.45% (Indonesia inflation rate, 2015). The inflation rate is the level at which the prices for goods and services are rising. It is apparent that inflation is effecting Indonesia more drastically, causing an increased in the cost of goods and services. Indonesia’s high inflation rate correlates with their Consumer Price Index. This being the case, the cost of living is more expensive in Indonesia than in Australia, which effects the living standards.

But here's the important point. As I and some others have been pointing out, the GDP numbers that everyone is accustomed to use, are not the main game for Australia right

During my lifetime the Australian economy has been one of the strongest and most consistent in the world. There are a multitude of factors that have led to this and allowed the Aussies to be in this position. One of them being steady GDP growth rates, averaging around 3.5% annually (Heritage.org). Australia has also benefitted from considerably low inflation and unemployment rates. With this mixture of GDP growth, low inflation, and unemployment, they consistently set themselves up to be one of the strongest economies in the region, as they ranked third in the ranking of regional economies (Heritage.org). Another reason for Australia’s ongoing success is primarily because of the growth in foreign demand of importing

The purpose of this report is to compare both Australian and Chinese economies. China is one of Australia’s closest trade neighbours, often referred to as the Sino – Australian relations. While Australia has a minute population of 23.9 million in comparison to China’s 1.357 billion its economic ranking is just as its population, lower than China’s. Both economies have various similarities and differences in areas such as economic systems and historical events, economic growth, quality of life, employment and unemployment, distribution of income, environmental sustainability and, the role of government in health care, education and social welfare. The following report will parallel and compare both economies in retrospect to the

At the present, the Australian economy is still in a period of slow economic activity brought about by multiple contributing factors. A large factor of this would be the decrease in China’s level of economic growth that has resulted in a large decrease in demand for Australia’s goods and services. Presently Australia’s percentage debt to GDP ratio is approximately 41.1%. Since the previous year the debts rate of growth has increased slowly. This level of debt is the highest that Australia has ever recorded. For the 2016/2017 budget the estimate for the government revenue this year was approximately $406 billion. The predicted spending for the government during this year was $451 billion. Therefore, the gap in the government expenditure and

Official statistics indicate that 3.52 percent of Jakarta’s residents – over 312,500 people – fall below the poverty line. Living on the coast and along waterways, they are physically vulnerable to injury and property loss, and economically vulnerable as their livelihoods and employment are mostly based in these same areas.

Meanwhile, the crude death rate in Indonesia in 1970 was 17, 7.9 in 1988, increased slightly to 9 in 1990 and dropped to only 6 in 2006. Furthermore, the infant mortality rate declined from 67 per 1,000 life birth in 1988, 56 in 1990, to 52 in 2000 (Demographic Indicators: Indonesia, http://www.unicef.org). The decline in mortality rates in Indonesia were caused by better standard of living, better families’ health and better education which are also caused by family welfare improvement.

In the past two decades, the Australian economy has been, and continues to be a very strong and steady economy because of steady GDP growth rates, with an average around 3.5% annually (Heritage.org). Australia has also benefitted from considerably low inflation and unemployment rates. Because of these macroeconomic values, Australia is ranked third in the ranking of regional economies (Heritage.org). The reasons for Australia’s ongoing success is mainly because of the boom in foreign demand of importing the plethora of natural resources and minerals the country contains, combined with the structural economic policies enacted in the 1980’s (The Economist - Australia’s Economy). Australia is also one of the few countries

ralIndonesia is the largest economy in South East Asia and its growth is improving by the day, it appears to be in the top grouping of emerging markets.

Indonesia is the sixteenth largest economy, the largest economy in the South-east Asian economic region with the world's fourth largest population (263 million in 2017). It is an emerging economy that has increased its international integration, trade liberalisation and diverted from policies of import substitution towards export-led development. Indonesia is a member of the Group of 20 (G20) major economies and has been an active founding member of the World Trade Organisation (WTO). The impact of globalisation has benefited Indonesia as quality of life indicators and economic developments have improved but it also presents the challenge of improving regulations, building more competitive industries, increasing investment into education and infrastructure to remain competitive. Consequently, Indonesia has introduced numerous strategies to promote economic growth and development.