The paper "The Place of Manufacturing Industry in the Australian Economy" is an engrossing example of coursework on macro and microeconomics. The Australian economy determines the strength of Australia as a country. The country has very solid growth, low unemployment rates, low public debt, inflation that has been contained, and a financial system that is strong and stable. In 2012, Australia had experienced a steady continue economic growth of an average of 3.5% for 20 years. According to the World Bank, Australia has the second-fastest pace when starting a business. In 2013 and 2014, the economic growth rate was lower than the trend but this situation will change by 2015 according to the Reserve Bank of Australia (RBA, 2014). The economic contribution of the manufacturing industry The role of the manufacturing industry in the Gross Domestic Product cannot be undermined.
According to the Australian Bureau of Statistics (2012), the manufacturing sector was the second-largest contributor to the Australian Gross Domestic Product after the financial and commercial services sector. In 2011, it contributed about 9.1% of the GDP. In 1991-92, the total production of the manufacturing industry reached a peak of $116 billion which was an increase of about 37% in comparison to the preceding year.
There was a decrease in the production of the manufacturing industry in 2008-2009 due to the global financial crisis which recovered in 2010. Currently, the contribution of the manufacturing industry in Australia has been decreasing. According to Szanto (2014), the drop in the contribution of the manufacturing industry to the Australian is exhibited by the fact that the number of people employed in the sector is decreasing.
In addition to that, he continues to note that some companies are slowly closing shops. The most recent examples are the announcements of Ford, Holden, and Toyota to cease the manufacturing of cars. Ford plans to case manufacture by 2016. The rail transport sector has started exporting Chinese wagons as hopper wagons used for mining are also being imported.
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