The paper “ Economic Issues and Growth in Australia” is a spectacular example of the literature review on macro & microeconomics. Australia is part of the nations globally that have faced both strong and weak economic times. This paper focuses on the country’ s current experiences that include economic growth, inflation, unemployment, external stability, CAD, income distribution, ecological sustainability, two-speed economy, and resource allocation, allocative efficiency, income distribution, and opportunity cost. Economic GrowthAccording to Gilding (2005, pp. 25-27), in the last two decades, Australia suffered the greatest economic contraction that was caused by various factors.
One of them is the floods that affected resource exports in the key coal-producing area. This incident had adverse effects on the country in that it exposed its dependence on mining revenue. As a result, its Gross Domestic Production (GDP) went down to 1.2% for the first three months from the earlier quarter that had 0.8% growth. Then, the country depended on mining, agriculture, and manufacturing. Because of the economic decline of Mining by 6.1%, agriculture by 8.9%, and manufacturing by 2.4%, its GDP collapsed by 0.2 points (Sabillon, 2008, pp.
12-15). However, presently, the country is one of the best economies among developing countries worldwide. For the past seventeen years, it has recorded a steady economic growth that averages 3.3% per year. Therefore, this has placed the country on top in terms of high economic growth. The country’ s economic growth was forecast to increase in 2008 and 2009 by 2.75%. This growth rate is stunning in that it is above 2.2%, which is the average economic growth rate among members of the Organization of Economic Cooperation and Development (OECD).
In addition, the country is ranked as the leading nation in the Asia-Pacific area of industrial productivity, agriculture, and labor per employee. In fact, the economic survey by the OECD conducted in 2006 indicates that the country has the highest living standards compared to the members after the United States (Stapledon, 2009, pp. 45-47).
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Gilding, M. (2005). The New Economic Sociology and Its Relevance to Australia
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Sabillon, C. (2008). On The Causes of Economic Growth: The Lessons of History. New York, NY: Algora Pub. Pp.12-15.
Stapledon, N. (2009). Housing and the Global Financial Crisis: US versus Australia
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