The paper "The Study of Australian Economic" is a great example of an assignment on macro and microeconomics. Australia is second to the United States of America as far as the G7 country's living standards are concerned. The economy has undergone a lot of reforms that have seen the country stand against the wiles of the recession experienced worldwide. Asia forms a large market of Australia manufactured goods and the signing of many contracts between her and China is a major boost to supplementing raw materials and energy supply which is crucial to the growth of the economy (Garnett and Lewis 2002).
Commencing in 1980, Australia has major structural changes in its economy and has overtime and progressively change from being highly protected, inward-looking, and regulated to export-oriented, open, and internationally competitive. The following table shows the GDP growth rate posted for a period of four years from January 2006 to January 2010. Major economic reforms comprised of floating the Australian dollar, reduction in high tariffs and protective impediments to free trade, increase in flexibility in the labour market, increase of efficiency the federal and state branches of government, deregulating the financial service sector, reforming the taxation system, reduction in income tax rates, the introduction of broad-based goods and service tax and the privatization of many government-owned monopolies.
The Australian economy is largely dependant on the service sector. Mining and agricultural sector forms the bulk of Australia exports. Australia has a competitive advantage in the exportation of primary products. The table below shows the share of the service sector as compared to others (Garnett and Lewis 2002). 1974 1984 1994 2002 Agriculture 4.4 4.3 3.0 2.7 Manufacturing 18.1 15.2 13.3 11.8 Other industries 14.2 14.0 14.6 14.4 services 63.4 66.4 69.1 71.1 The softening of the Australian economy in the twentieth century is largely attributed to Asian economic crisis that transpired between mid-1997 to 1999, although the recession largely affected Asia, Australia was an indirect victim because much of its products lant in the Asian market. Despite these positive implications relating to the Australian economy, there has been a share of challenges that have been a great obstacle to its growth.
The population composition is majorly made up of the old people who are not productive as far as economic growth is concerned.
Garnett, A. And Lewis, P. (2002). The Economy’ ,in Aulich, C. And Wettenhall R. (eds), Howard’s Fourth Term , New South Wales University Press Sydney.
Otto ,G. (2007). Central Bank Operating Procedures : How the RBA Achieves Its Target for the Cash Rate’ , Australian Economic Review; June, Vol. 40 Issue 2, p216-224 .
Gordon, C. And Valentine, T. (2009), Economics in Focus: The Global Financial Crisis, Pearson Education, NSW.