The Resilient Australian Economy : Australia Essay

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The Resilient Australian Economy

Australia has been one of the few developed nations to remain largely unscathed by the global financial crises of 2008 – a crisis, which has left in its wake seemingly intractable problems of unemployment, large government debts, financial fragility and political unrest in Europe, Japan and North America (McAuley 2012). This would be further explored in the essay.

Composition

The Australian economy faces new challenges like the high exchange rate of Australian dollar that has impacted the international competitiveness of its trade activities, mainly manufacturing. Another long-run challenge the economy faces is the dependence of Chinese economy, as they are major trade partners. The future will depend on how the Australian economy prepares itself with corrective/reactive policy measures, trade agreements, and innovative strategies to keep Australia’s dream run of prosperity.

Chart 4: Industry Value Added and Employment, 2014

Source: ABS
The Chart 4 shows the composition of Australia’s economy with the value added by each industry in the year 2014. Though mining still enjoys a high contribution to the economy, it is on a slow decline and will continue declining as the composition shifts. A variety of factors can affect the decline such as depletion of natural resources, climate change and change in strategy by the government. The technological know-how & progress along with high exchange rate has had an impact on the composition. Thus,
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