Oecd : Oecd Development Economic Growth

Australia’s economy is much better then South Korea’s. This essay will be comparing five different areas of the economy. These include economic growth and the quality of life, employment and unemployment, distribution of income, environmental sustainability and the role the government in health care, education and social welfare. Income is a necessity to achieve higher living standards. Australia’s average household income is 31 197 USD per year, South Korea’s average household income is only 18 035 USD per year.

Australia is one of the richest countries in the world. It is one of the developed countries whose unemployment rate is above 5 percent. Perkins and Angley (2003) asserted that the increasing impact of globalization, combined with a change in

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

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.

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.

Australia has also experienced a rising terms of trade to 130.0 in late 2011 due to the commodities boom as a result of the industrialization of the BRICs, whereby Australia has experienced high export and national income, but has resulted in less competitiveness in other sectors due to the high AUD, causing the ‘Dutch disease’ whereby non-commodity sectors lose competitiveness. Similarly is can be seen in its narrow export base whereby in 2012-13 one third of export revenue came from coal and iron ore ($96 billion from 300 billion), furthermore 57% of Australian export revenue is made up of mineral and energy exports, whereby Australian growth has been largely fuelled by commodity exports and mining boom.

This has been the result of inflationary pressures due to excessive consumer demand, and a world increase in oil prices, the RBA’s primary objective is to contain inflation at 2-3% whilst also achieving sustainable growth. The current increases in interest rates will result in lower aggregate demand as consumers have less disposable income. This results in reductions in inflationary expectations, and a decrease in the demand for imports. Furthermore higher rates of interest will encourage overseas investment into Australia, thus resulting in an increase in the demand for the Australian dollar. An increase in the demand for the AU$, and a decrease in its supply due to less import expenditure will result in an appreciation of the AU$ in forex markets. Overall this results in depressed economic activity and lower levels of growth. However the RBA has been able to increase interest rates in order to contain inflation while maintaining economic growth. This is because the global economy has continued to grow at record pace, with strong growth in the US and China, and the recovery of Japan and Europe. Consequently demand for Australian exports has remained high, thus creating opportunities for increased production and subsequent economic

rate, in periods of higher income tax the GDP sees an increase thus proving that higher taxes do not create a drag in the economy. When the top marginal tax rate is at a 75 to 80 there is an about 4.6 GDP growth creating this “Sweet-spot”.

Suggesting any economic or policy reforms to the Australian Economy requires us to understand the evolution of an economy and the factors effecting it both intrinsically and globally.

Firstly the Australian economy is deemed one of the largest democratic economies as well as being stable in condition (Dfact 2012). Australia’s GDP is $1.57 trillion USD and with a total wealth of $6.4 trillion USD, making it the 12th nation ranked in the world in terms of GDP (nomial). (Wikipedia 2014) Currently the Gross Domestic

The United States of America and Australia both have powerful economies that continue to experience economic growth annually. The two nations have similarities and differences in certain economic issues including: population, market structure and standard of living, which all contribute to the overall wealth of the countries. Population growth can impact an economic growth in various ways such as increasing job opportunities. Additionally, the standard of living is determined by a criteria of points and attracts foreigners to move countries. Lastly, both nations adopt mixed market economies which contribute greatly to the country's economic strength. Ultimately, the small variances in economic issues that the US and Australia face, enable them

The government of Australia highly impacts the economic inequality in Australia with doing things such as bringing in polices and aiming the budget at certain demographics. After the highly anticipated budget release of 2016, the government told Australians of the major budget measures that were going to affect them. This included a raise of the tax bracket for middle income earners, redefining it as $87,000 rather than the current $80,000. Currently, the bracket is for those who earn $37,001 - $80,000. “Tax

The second key national interest of Australia is the economy. Australia’s capital, jobs, standards of living, technological innovations and social advances rely substantially on exports and commodity values within Southeast Asia and the Pacific (Department of Foreign Affairs and Trade 2016a). The stability of South East Asia and the Oceania

There are three major economic factors that have combined contribution to FMG’s growth over the past 5 years, including the strong AUD , the amazing export feature due to the Chinese boom which drives up the commodity price and the interest rate decision by RBA. Australia dollar has appeared strong for the past 5 years and maintained at $6-$6.8 level for AUD/CNY at most time. It promised a high level of foreign income for Australia exporter. In 2009, China demanded almost 60% of the world’s iron ore to produce 47% of world’s steel production. It contributes the most to the price rocket from $31.78 to $180.6 US cents/mts in 5 years time. In addition, Australia borrowing cost remains high over the past few years which may alter the finance decisions of FMG.

In March 2015, Greg Jericho published an article called Weak, weak growth and six things about the state of Australia’s economy that outlined how in the past 6 out of 10 quarters the Australian