Business report on Australian Economic Condition-Free-Samples

Question: Discuss about the Business report on Australian Economic Condition. Answer: Introduction: The economic condition of Australia has remained highly developed along with its mixed economic structure. This report intends to describe about the present economic situation of this country in the light of macroeconomic variables, for instances, national income, consumption expenditure and investment expenditure (MacLachlan, Biggs, Roberts and Boruff 2017). After that, the report is going to forecast the economic performance of Australia for the next six months and based on this, the future trend of cash rate of the Reserve Bank of Australia can also be discussed. Resent Australian situation based on Macroeconomic concept: To understand the recent economic condition of Australia, three indices are needed to discuss, that are gross domestic product (GDP), price level and unemployment rate of Australia. The economic condition of this specified country can be understood through changing trend of GDP. Figure 1: GDP trend of Australia (2013-2018) Source: (tradingeconomics.com 2018) It can seen from the above figure that the GDP of Australia has fluctuated drastically over the last five years. This growth rate increased at a slower rate. Figure 2: Unemployment rate of Australia (2013-2018) Source: (tradingeconomics.com 2018) The unemployment rate of Australia has decreased significantly, which in turn has indicated a positive economic condition of this country. In 2017, this rate has remained at 5.7% though at the initial phase of 2018, this rate has increased by a small percentage (tradingeconomics.com 2018). Moreover, the retail price level has remained at a lower level and has decreased further in the second quarter of 2017. With the help of Keynesian model, the economic condition of Australia can be analyzed more precisely (Benigno 2015). This model has focused chiefly on four economic indicators, which are consumption expenditure, government expenditure, investment expenditure and net export. Figure 3: Personal consumer expenditure of Australia (2013-2018) Source: (tradingeconomics.com 2018) The above figure has represented an increasing trend of the countrys personal consumer expenditure after the present president of the U.S.A has come into power. This indicates that Australias economic condition is achieving a better position (tradingeconomics.com 2018). In addition to this, the present condition of the countrys investment expenditure and government expenditure have experienced positive trend, which have affected the countrys economy in a positive way. However, the countrys net export has affected adversely due to unstable economic condition of the global economy. Economic performance in the next 6 months: Based on those macroeconomic variables, it can be predicted that the economic condition of Australia is going to increase in the next 6 months and at the end of 2018, it can be reached nearly at 3% (Johnson and Mitchell 2017). However, due to political and economical instability, especially in China, the net export of Australia can be decreased further while the level of unemployment may remain at the same position. Future cash rate of the Australian central bank: The central bank Australia can implement expansionary fiscal policy to decrease the cash rate, which in turn can decrease the interest rate of banks in future (Makin, Robson and Ratnasiri 2017). Through this policy, the government can control the increasing inflation rate of Australia. Conclusion: After discussing all macroeconomic variables, it can be concluded that the GDP of Australia can be increased in next 6 months while the cash rate may be decreased during the same period. At present, the GDP of this country is increasing at a slower rate. Hence, by considering entire impacts, it can be said that the economic condition of Australia is attaining a stable position. References: Benigno, P., 2015. New-Keynesian Economics: An ASAD View.Research in Economics,69(4), pp.503-524 Johnson, P. and Mitchell, I., 2017. The Brexit vote, economics, and economic policy.Oxford Review of Economic Policy,33(suppl_1), pp.S12-S21.. MacLachlan, A., Biggs, E., Roberts, G. and Boruff, B., 2017. Urban growth dynamics in Perth, Western Australia: using applied remote sensing for sustainable future planning.Land,6(1), p.9. Makin, A.J., Robson, A. and Ratnasiri, S., 2017. Missing money found causing Australia's inflation.Economic Modelling,66, pp.156-162. Tradingeconomics.com. (2018).Australia Consumer Spending | 1959-2018 | Data | Chart | Calendar. [online] Available at: https://tradingeconomics.com/australia/consumer-spending [Accessed 3 Apr. 2018]. Tradingeconomics.com. (2018).Australia GDP Growth Rate | 1959-2018 | Data | Chart | Calendar | Forecast. [online] Available at: https://tradingeconomics.com/australia/gdp-growth [Accessed 3 Apr. 2018]. Tradingeconomics.com. (2018).Australia Unemployment Rate | 1978-2018 | Data | Chart | Calendar. [online] Available at: https://tradingeconomics.com/australia/unemployment-rate [Accessed 3 Apr. 2018].