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Economic Growth in Australia

Introduction

The economic growth in Australia is uninterrupted for the last 25 years (Austrade.gov.au 2016). The country has witnessed tremendous economic growth in terms of Gross Domestic Product (GDP), Gross National Product (GNP) and other parameters (Salahuddin et al. 2015). Australia is the world’s 12th largest economy and demonstrates high levels of productivity (Austrade.gov.au 2016). The country is known for the largest pool of funds. The country is an important contributor to essential sectors like education, agribusiness, mining, tourism, wealth management and others, which are the major drivers of global growth (Austrade.gov.au 2016). The GDP growth of the country is predicted to be 2.9% (approx) in between 2016 and 2020 (Austrade.gov.au 2016). The country witnessed a 3.3 % growth in GDP per annum in between 1992 and 2015 (Austrade.gov.au 2016). This paper explores the economic growth of Australia during the last 5 years. The paper also describes the positive as well as negative effects of the economic growth on Australia.

Discussion

The increase in the market value of various goods as well as services produced by a particular economy over a certain period of time is known as economic growth (Hatfield-Dodds et al. 2015). The economic growth is measured in terms of gross domestic product or GDP. The growth of the GDP per capita or the per capita income is an important measure of the economic growth of a country. The economy is said to grow rapidly when the increase in the growth is caused by efficient utilization of the raw materials like physical capital, labor, materials, energy and others (Wiedmann et al. 2015). In the world of economics, the economic growth refers to the degree of the growth of the potential output. The highest production at the level of full employment is essential. The growth is usually calculated in terms of real variables like “inflation adjusted” terms (Rba.gov.au 2016). This is done in order to reduce the distorting outcome of inflation on the cost of the goods that are produced. The national income accounting methods are used for the measurement of economic growth (Rba.gov.au 2016). The per capita GDP growth is calculated based on factors such as labor productivity, intensity of work, number of hours worked, participation rate of the workers and the demographical factors (Rba.gov.au 2016).

The Australian economy is one of the most growth oriented economy of the world (Law and Singh 2014). The economy has displayed tremendous positive performance in the last twenty years. Australia is proud to be one of the world’s most developed progressive economies. The economic growth of the Australian economy can be dated back to early 1990 (Rba.gov.au 2016). There is not any single country in the world, which has enjoyed uninterrupted growth over a span of twenty years (Rba.gov.au 2016). This extended period of economic growth is rare even in the case of most developed countries.

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