The paper "The Australian Economy" is a perfect example of a micro and macroeconomic case study. The economic projections for Australia’ s economy, forecast an extremely strong performance in the future. The economists project growth of about 5.5% of the gross state product. However, the growth rates in various sectors will remain divergent. The factors that will affect this growth are interest rate frameworks. The reserve bank of Australia will raise interest rates in order to curb the rising inflation on the economy. The Australian economy is supported by remarkable growth in mining, mining services, gas and oil sectors.
Australia’ s economic output from rural areas is extremely impacted by the effects of drought. Australia plans to invest heavily in the iron mines and natural gas. This would be followed up by massive infrastructure in order to provide for the rising demand for utilities. The Australian economy responded incredibly well during the global financial debacle. The unemployment rate in 2008 was 2.3%, but the financial, global crisis affected employment opportunities in Australia (Rudd 2009). The unemployment rate rose to 5.7% in 2009, but strong interventions caused a significant decline to 4.4%.
The economic policies in Australia are centered at lowering the unemployment rates and stabilizing inflation pressures on the economy. The Australian experience on unemployment has been a problem to the economy despite its relatively low rates. Australia’ s dynamic changes in production trends have triggered job losses and subsequently increased unemployment rates (Bell 2000). There has been a relative consistency in unemployment rates at below 6%. Policy formulation in Australia is focused on maximizing the rate of economic growth. The policies are tailored to increased provision of the required services and goods.
Unemployment causes a detrimental impact on the economy. People who are unemployed experience a range of difficulties like health, financial and marital. Unemployment breeds social crimes, inequality in income distribution and vulnerable state of welfare for the society.
List of References
Australia Bureau of Statistics, 2010. Unemployment Rate in Australia. [online] Available at:
Australia Bureau of Statistics, Dec, 2011. Australian National Accounts: National Income, Expenditure and Product [online] Available at:
Bell, S., 2000. The Unemployment Crisis in Australia: Which Way Out? Melbourne: Cambridge University Press.
Lewis, P. and Garnett, A. 2008. The Economy. In Aulich, C. and Wettenhall, R. Towards Fourth Term. Sydney: New South Wales University Press.
Lewis, P., Garnett, A., Treadgold, M. and Hawtrey, K. 2010. The Australian economy: Your guide, (fifth ed). Sydney: Pearson Australia.
Montiel, P. and Agenor, P. 2008. Development macroeconomics. (3rd ed). New Jersey: Princeton University Press.
Otto, G. 2007. Central Bank Operating Procedures: How the RBA Achieves Its Target for the Cash Rate. Australian Economic Review, June, 40; 2, 216-224.
Reserve Bank of Australia (RBA), 2010. Cash Rate Target- Interest rate decisions. [Online] Available at:
Rudd, K. 2009. The global financial crisis, The monthly, p. 20-29. [online] February, Available at:
Swan, W. 2010. Budget Speech, Budget 2010-2011. Common Wealth of Australia, Canberra. [online] Available at: