Evaluate Australia's Current Economic Situation

This report will show an overview of the current state of the Australian economy and its management by the Federal government through examining economic indicators such as economic growth (GDP), unemployment, inflation and trade.

The government implements an economic policy mix involving macroeconomic and microeconomic policy in order to achieve their objectives. The three main objectives include:

Australia became a commonwealth of the British Empire in 1901. It was able to take advantage of its natural resources to rapidly develop its agricultural and manufacturing industries and to make a major contribution to the British effort in World Wars I and II. Now, Australia has a prosperous Western-style capitalist economy, with a per capita GDP at the level of the four dominant West European economies. Rich in natural resources, Australia is a major exporter of agricultural products, minerals, metals, and fossil fuels.

The Australian PMI has been mostly below 50 with an average of 47.98 in past 12 months and an average of 47.94 this year, which suggests a likely contraction in manufacturing. Fluctuation is expected due to its volatile nature but a large percentage change is likely to drive the economy. A 14.03% growth in July is expected to lead to an increase in the coming month but contraction may continue in 2015-2016. From these PMI figures, Australia’s economy might not be performing at its best. The industry might suffer

The benchmark investment rate in Australia was last recorded at 2.25%. Investment Rate in Australia found the middle value of 5.13 percent from 1990 until 2015, arriving at an unequaled high of 17.50 percent in January of 1990. Inflation Rate in Australia averaged 5.21 percent from 1951 until 2014. Customer costs in Australia rose 1.7% during the time to the December quarter 2014, the slowest yearly pace in more than two years as petrol costs dove. Australian yearly inflation rate abated to 2.3% in the second from last quarter of 2014 from 3.0 % in the past period, determined by a fall in cost of electricity, after the removal of tax duty on carbon discharge beginning early July. An alternate key variable that impacts the business is the unemployment rate. While the unemployment is staying high it is normal that RBA will keep the investment rates and trade rates low. Unemployment Rate in Australia diminished to 6.30% in February of 2015 from 6.40% in January of 2015. Unemployment Rate in Australia found to be in between 6.91% from 1978 until

The Australian economy is playing a crucial role in terms of global economy. Based on the government’s analysis, Australia has been placed at the top 20 for the world’s largest economy. This caused a lot of economists to pay attention to Australia’s performance. Economists use macroeconomic objectives to analyse the national economy. This essay will focus on two macroeconomic objectives, how they are measured, and how they relate to each other. Furthermore, it will also discuss Australia’s performance over the past three years (2013-2015) and predictions concerning Australia’s performance in terms of these objectives in 2016.

It is said that we are living in turbulent times. The Australia’s once-in-a-century commodity boom has reversed, leading many miners to cut back on investments and consolidate; which is expected to generate great social and economic hardship throughout these years. While more hope is casted into the construction sector, a cooling change blows in the housing market. Unemployment is tipped to rise and when it reaches a record high; consumption will continue to grow at a below-average pace, so business sentiment will remain fragile. Rather than fuelling the economy, the fiscal policy keeps straining it whilst the monetary policy will struggle to have an impact – indicating that the Australian economy is slipping downwards.

In the Australian economy, trending unemployment rates are a prevailing socio-economic issue. With the labour market central to unemployment and the distribution of jobs, many factors arise as the key influences on unemployment. With an incredible number of industries facing high demand by consumers, it is speculated that employment would feature an increase to compensate. However, many factors of the labour market contradict this and instead increase unemployment. Factors such as the level of economic growth, technological changes, trends in productivity and the trends in inadequate education have adverse effects on how unemployment increases and decreases.

This report will detail the state of the Australia economy using key economic indicators, and provide an analysis and pinpoint any economic problems. Using this information it will further provide recommendations how to apply the monetary policy in the short and medium term to help the Australian government achieve its main economic objectives. Finally it will state the effects of these recommendations using three outlined economic criteria.

Good afternoon, allow me to introduce myself. I’m Braiden Simpson, advisor to the treasury. Thank you for inviting me here to speak to you today about the current economic climate and to discuss well-structured policies and strategies to ensure the sustained wellbeing and growth of the Australian economy. We are all aware that through the introduction of strong policies that stimulate economic growth, policies that protect jobs, encourage job creation and the need to keep our economy stable through well managed macro-economic policies are what is required to ensure a continued advanced Australian welfare. Macro-economic policies are concerned with policies issues and objectives that affect the whole of our economy, however there are three main

Booms, busts, recessions, and growth; all of the preceding terms are characteristics of a typical market economy. There are times when an economy can flourish spectacularly and there are times when it can fail miserably. Consequently, it is the responsibility of a nation’s central bank to manage these fluctuations through conducting effective monetary policy. The following paper will assume the perspective of the Reserve Bank of Australia (RBA) and critically analyze the past, present, and future of the Australian economy while considering specific sectors.

Australia has been expanding the economies and becoming the wealthiest nations in the Asia-Pacific regions. The old Labor government use a fiscal policy by increasing the government spending in the Global Recession in 2009. Australia generates the mainly sources of exporting form mining and agriculture, and its services, technologies, and high-value-added manufactured goods are competitive international standard. Australia draws attention to foreign investment with foreign competition and a skillful workforce in almost all industries. The government involves less in the most area of the market and the competition in financial services has increased. Government debt is increasing because of the global financial crisis but it is lower than the

Stable economic growth is a fundamental requirement for the betterment of a country. Employment and economic growth are interrelated. At present, immigrants of a country provoke economy to grow by engaging themselves in jobs at the foreign country.

The Australian economy can both have positive and negative affects on FASTA. To start, in reference to Reserve Bank Australia, the inflation rate is 1.9%, employment growth is 3.0%, cash rate is 4%, GDP growth rate is 3.5%, wage growth is 2.1%, average weekly earnings are $1,192.00, and finally the Australian dollar equals $0.75 US dollars. In analysis, the inflation rate, cash rate, wage growth and employment growth are beneficial to the business since the businesses expenses aren’t as high as it would be if the Australian economy was booming. As an effect this will cause FASTA to be able to have expansion and improvements such as, more efficient machinery at a lower cost, while also reducing the amount to be expended on operational expenses. However, the main negative effect of the Australian economy on FASTA is the decrease in sales due to the customers struggling to afford products.

At present, asylum seekers who arrived in Australia by boat on or after 13 August 2012 and are granted bridging visas are not allowed to work (Correa-Velez, Gifford and Bice, 2014, p. 9). Asylum seekers who are living in the community on bridging visas have no right to a family reunion and are not able to re-enter Australia if they choose to travel internationally.