The Australian Economy : Australia

The unemployment rate measures the percentage of the total work force that is unemployed and actively seeking employment during the previous month. Unemployment is termed as a major health of the economy and every country tries to reduce unemployment rate for sustainable growth. It is referred as the number of unemployed workers divided by the total civilian labour force. Every economy tries to ensure full employment in the country but there is the existence of natural rate of unemployment though nation tries hard to obtain full employment in the country.

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.

More than two-thirds of the annual catch consists of crustaceans; tuna is also important. Mining and quarrying account for about 4 percent of the GDP and employ about 1 percent of the labour force. Bituminous and lignite coal are the leading energy minerals, followed by petroleum and natural gas. Australia leads the world in the production of bauxite, industrial diamond, and lead; other metallic minerals include iron ore, manganese ore, titanium oxide, zinc, copper, nickel, tin, silver, gold, platinum, cobalt, cadmium, antimony, zircon, bismuth, and tungsten. The principal nonmetallic

So naturally, China's resource-hungry manufacturing industry is a perfect match for Australia's Resource rich, yet 'manufacturing ability' poor economy. Australia's day to day living costs are astronomical when compared to China's. Consumer prices in Australia are on average 115.87% higher than those in China, although countering that fact, Australia's purchasing power parity is 141.66% higher than China's. (Cost of living comparison between China and Australia - Numbero) Hence, levels of income for respective jobs reflects the economic situation in each nation (i.e Australia's salaries must be higher to counteract our high cost of living, whereas China's wages can be set lower, due to the lower cost of living.) At the time of writing, 1 Australian Dollar buys approximately 5.3 to 5.8 Renminbi Yuan (The Economist.) Chinese culture also places a greater emphasis on the system of bartering for goods and services, which is a system of trade Australia fails to utilise. At its current rate, China's economy will continue to experience growth, and will likely continue to be one of Australia's biggest import and export

Australia and China are two countries located in the southern and northern hemispheres respectively. They are both very important and major international exporters across the globe. Australian exports reached an all time high of A$29,970 million in February of 2014, this is a gain of A$120 million from the previous year. Australia’s natural resources are one of its main exports as Australia is so rich in its natural resources such as bauxite, coal, copper, tin, gold, iron ore, silver, uranium, tungsten, nickel, lead, zinc, diamonds, mineral sands, natural gas and petroleum.

Australia's narrow export base is one structural factor affecting BOGS. Australia's main exports are mainly coal, beef, iron ores and wool. Despite Australia having a strong manufacturing sector, many countries such as China are able to produce goods more cheaply. If many countries can produce the same goods at a cheaper price, it affects the rate of Australia's exports.

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.

Globalisation is not new. Australia has been involved in trade, investment, financial flows, technology transfers and the migration of labour since its foundation as a colony. What has changed is the size, direction and influence of these transfers, especially since 1980. There are a number of factors that have aided this transformation. They include:

China is one of the biggest countries along with Thailand and Japan who make goods for Australia. Being Australia’s third largest merchandise trading partner and seventh largest service export market in 2003, China might significantly affect the Australian economy through any changes made to its trade policies. A more liberal Chinese trade policy could increase Australia’s income in part through greater market access for its exports. Of every hundred dollars of national

With a GDP of over $1 trillion USD, the Australian economy is among the largest in the world (Cornett and Saunders, 2014). Australia is trading partners with the United States, China, and Japan, but their economic ties are mainly centered in the Pacific Rim. Exports are crucial to the country’s GDP and this has created problems regarding sustainability in the Australian economy.

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

Australia’s political view has been recognized by other countries as a strong market leader and a valuable country to have free trade agreements with. All Australians can see that this is a huge benefit to the Australian economy. An increase in trade agreements means more jobs and security for the

Since 2012, Australia has maintained a mostly negative trade balance, perhaps amid uncertainty of its currency against the US dollar, but more likely is its economic growth is causing it to import more and more petroleum products which it’s exports of its own natural resources is not able to match.

According to the data, the total volume of textiles exported from China has started a continuous rapid growth since 2001 (the year of China’s accession to the WTO) as shown in the first graph above, which roughly

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