The paper "The Economy of Australia " is a perfect example of a macro & microeconomics case study. The economy of Australia is a developed one with a very modern economy. The gross domestic product (GDP) for the country currently stands at US$1.23 trillion (Australian Bureau of Statistics). Compared with other world economies, Australia has the 13th largest economy in the world as per the report released by World Bank in June this year. In terms of purchasing power parity (PPP), Australia stands at position 17 in the whole world.
Australia as a developed economy substantially contributes to the world economy through the importation and exportation of goods and services. In the world, Australia is ranked number 19 both in exportation and exportation of goods and services (Lee, et el 34). The country is also a member of various trading blocks and treaties which include the World Trade Organization and the G20. The other countries that Australia has entered into bilateral trade agreements include the United States, Chile, Thailand, New Zealand and Singapore (Australian Bureau of Statistics). The entry and penetration of Australia into the world economy has been greatly motivated by its favorable macro-economic policies that have been put in place by the government in order to support both local businesses and those that are owned by foreign investors.
Australia currently is on the run to form a single market economic partnership with New Zealand as one way of taking advantage of the local market and thereby avoid much of the costs incurred when exporting goods and services to those countries that are far. The major characteristic of the Australian economy is that it is mainly supported by the service sector industry which contributes up to 65% of the country’ s GDP while agriculture and mining combined together contribute about 10% to the GDP (Australian Bureau of Statistics).
However, much of the country’ s exports come from the two industries and they contribute about 55% of the country’ s total exports. On the other hand, the energy sector is one of the biggest importing sectors in the country since there are no crude oil deposits in the country and therefore the country depends greatly on imported oil and other allied products by around 82%.
This essay will discuss some of the key macro-economic policies that have been introduced by the government and the Reserve Bank of Australia and that have contributed to this much development in the country.
Australian Bureau of Statistics. 6401.0-Consumer Price Index, Australia. Sept. 2010. 10 Nov. 2011, http://www.abs.gov.au/ausstats/abs@.nsf/mf/6401.0
Lee, Mylne, et el. Frommer’s Australia 2011. London: John Wiley & Sons, 2010.
Moschella, M. Governing Risk: The IMF and Global Financial Crises. London: Palgrave Macmillan, 2010.
Organization for Economic Co-operation and Development. OECD Economic Surveys: Australia 2010. Sydney: OECD Publishing, 2010.