The paper "Reasons for the Variation of Growth Rates - GDP of Australia" is a perfect example of a micro and macroeconomic case study. In 2005, the Australian economy was experiencing a boom in commodity prices such as iron ore and lead thus; the revenue obtained from exports was high. This boom is showcased by the 3.2% GDP growth rate. In the years prior to 2005, the economy was very stable hitting a growth rate of 4.1% in 2004 and 3.9% in 2002 (World Bank, 2017). However, a fall in the increase in exports influenced the 2006 GDP.
It experienced a 3.0% growth rate, which is slightly lower than the previous year. The slight fall was a result of a slip in the manufacturing sector that year. However, the mining sector through exports enabled consistent growth. This mining boom alongside a series of economic factors such as good global commodity prices increased mining output enabled the economy to achieve a 3.8% GDP growth rate. The effects of the GFC slowly crept into the Australian economy through the banking, manufacturing, and agricultural sectors. This resulted in a -1.9% growth rate of the GDP in 2009.
Reduction in the exports of agricultural products and turmoil in the banking sector, caused by the GFC facilitated the negative drop. However, the government to restructure the economy by cash input strategy to enable a stable economy implemented policies. The flow of cash enabled the economy to achieve a growth rate of 2.0 in 2010. Even though the recovery was slow, the country managed to evade recession in all economical sectors thus securing the jobs. The mining commodity boom also facilitated this evasion, which was at its peak. Consistent growth was experienced from 2010 to 2012 due to improved export prices of natural resources such as iron ore, gold, and lead by 1.6%.
However, the manufacturing segment failed in productivity in 2013; also, the mining boom was affected by the entrance of new suppliers such as Brazil in the global market. Despite the fact that the sector was resilient in the past, its productivity was ailing thus reducing non-mining commodities exports. Thus, the growth rate lowered to 2.4%, which is 1.2% lower than the 2012 growth rate.
The economy obtained cushion from the export of mining products to long term trade partner China. From 2013, the economy has been consistent; growth has averaged a GDP growth rate of 2.4%.
Scutt D (2017) Why Australian interest rates are unlikely to return to pre GFC levels, Retrieved on 18/05/2017
Battellino R (2010) Twenty Years of economic growth, Retrieved on 18/05/2017
McDonald T, Morling S (2013) The Australian Economy and the Global Downturn, Economic Roundup, vol 32 (2) 54-67
RBA (2016) labor force division, Retrieved on 16/05/2017
World Bank (2017) Data Bank, Retrieved on 16/05/2017
OECD (2016) Australian Economic forecast summary (November 2016), Retrieved on 16/05/2017