Australia s Economic Success And Growth Rates - 1699 Words

Economic Background: In the past two decades, the Australian economy has been, and continues to be a very strong and steady economy because of steady GDP growth rates, with an average around 3.5% annually (Heritage.org). Australia has also benefitted from considerably low inflation and unemployment rates. Because of these macroeconomic values, Australia is ranked third in the ranking of regional economies (Heritage.org). The reasons for Australia’s ongoing success is mainly because of the boom in foreign demand of importing the plethora of natural resources and minerals the country contains, combined with the structural economic policies enacted in the 1980’s (The Economist - Australia’s Economy). Australia is also one of the few countries†¦show more content†¦The largest slice of Australia’s exports go to China, exporting around 31.6% of its total exports, making China Australia’s biggest benefactor to its economy (DFAT). Although the exports mainly consist of the titanic amount of minerals that Australia mines, China also imports large quantities of wool, another heavily traded commodity of Australia. One of the leading wool industries, the Australian Wool Innovation (AWI) has said â€Å"it is easier to sell fine wool for clothes to China than to traditional recession-hit markets in Europe† (The Economist - Hitched to the China Wagon). The exportation of wool in conjunction with the exportation of minerals and ore to China makes China a strong partner with Australia when it comes to resource trading. China obviously is dependent on Australia’s exportations, making Australia’s relations with China a strength of the overall Australian economy. The Australian economy however, is clearly just as dependent on China’s demand for such commodities. Although Australia greatly benefits from China’s demand in its exports, Australia needs to make sure the trade relations between them don’t act as a crutch for the Australian economy. Recent studies and articles predict China’s demand for Australian goods will be shifting leftward in the near future, possibly impacting Australia’s economy, and putting it into a recession. Weaknesses of Economy: When it comes to economic weaknesses, Australia is fairly unique in comparison to otherShow MoreRelatedEconomic Factors That Influence Our Quality Of Life1379 Words   |  6 PagesEconomic factors that influence our quality of life in Australia An economy refers to the way in which a society is systematized to solve the economic problem of the insufficiency of resources relative to the society s needs and wants involving the countries production, distribution and exchange. There are many factors or the economy that influence the standard of living in Australia. 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