When you talk about the economic growth in Australia, you cannot miss out the fact that it is the highest in the whole world. The Australian economy has been growing by leaps and bounds because of the right government policies and keen business initiatives by the authorities. The main contributing factors for this phenomenal growth rate include the liberalization policies adopted by the government, enhanced infrastructural development and liberalization policies. This has resulted in making the country a competitive economy where businesses can flourish without any restrictions. As a result, this dynamic economy has helped Australia to emerge as one of the leading nations in the field of business today.
The Australian economy has been able to sustain and improve its growth rate because of the right economic policies and reforms introduced by the current government. There was a time when the government simply implemented whatever it wanted to and made no provisions for the upliftment of the economy. They simply looked at the overall outlook and realized that things were not going the way they expected. This made them embark on a journey of profound changes which ultimately led to the current economic boom. However, this does not mean that things are rosy now for the residents of Australia as they have to also work towards achieving a better economic growth rate.
One important measure of the economic growth rate is the gross domestic product (GDP). This is known to be the value of an individual's income at the national level. For an economy to achieve a satisfactory level of GDP, the economy has to perform well in the service sector, industry and the manufacture of goods and services. The higher the level of GDP, the more jobs there are, hence, there are more people getting employed. This means that the number of people getting employment means that the unemployment rate is less.
The other important economic growth rate indicator is the net trade and investment. This refers to the difference between imports and exports. The size of the economy is largely determined by the amount of net export income it gets from the outside world. In case of Australia, it gains a sizable foreign exchange income. Hence, it becomes imperative to keep the external trading deficit under control.
One of the other vital indicators of the growth rate of the economy is the change in its balance of payments. This is one indicator that shows the actual trend in the inter-dependence of the country and the global economy. A sudden shift in the balance of payments could mean either an immediate fiscal stimulus or a severe attack on the currency of the country. This can cause great trouble in the economy as a whole and lead to higher inflation. Hence, it is important that the general trend of the economy does not get skewed by any unexpected factor.
One of the most important economic growth rate indicators is industrial production. Industries that are based on heavy machinery and gadgets need a considerable boost in order to flourish and increase their operations. For the major industrial sectors of the economy, the level of economic growth is quite consistent over the long run. If this level of economic growth is maintained, then there is no reason why industries of the . . . . . . country should stop developing. This is actually the key indicator of the health of the economy.
Of late, the gross domestic product of Australia has been growing at a rapid pace. This is a significant factor that helps the economy to keep growing even when times are tough. The level of employment in Australia is quite high and that is another reason behind the faster economic growth rate. The inflow of skilled workers is also helping the economy to gain a strong foothold in the global marketplace. The inflow of professionals will help businesses expand and grow even when times are tough.
Overall, the economic growth rate of Australia is quite positive. It is an indicator that the economy is on its way to reach the next level. If this level of growth is sustained over a period of time, then there is no reason why businesses in Australia or anywhere else in the world should halt their operations. With the right policies and adequate planning, businesses of all sizes can easily prosper in this troubled economy.