The Growth of the Asian Economy

1695 WordsFeb 26, 20187 Pages
Asian Economy: The growth of the Asian Economy has had positive structural effects on the Australian Economy. The trade volumes are at record high levels with China and the appreciation of the exchange rates have provided a boost to the economy. There has also been a rise in the resource investment, which has seen a reallocation of factors of production, which has lead to employment growth in these sectors. The focus of the Asian economies is on the production and consumption of goods and the commodity intensive nature of this rise has led to an increase in commodity prices. This has led to an increase in the productive capacity, which supports the exports, employment, incomes, taxes and wealth of the Australian population. The strength of the resource sector has had a positive effects on the exchange rate which when combined with the stable inflation rate has led to a significant increase in wage dollar of the working population (Plumb, Kent, & Bishop, Implications for the Australian Economy of Strong Growth in Asia, 2013). Competition: Australia’s asset pool of over A$1869.5 billion (finnewsnetwork) has attracted many Investment Managing firms from US and Europe. This amount is equivalent to 135% of the country's nominal GDP. The Australian Economy is the 4th largest in the Asia-Pacific with the sophisticated finance and insurance contributing 10.8% (A$118 billion) to the GDP. 17 out of the Top 20 Global Investment Managing firms have an established presence in Australia
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