Economics

Australia is a developed country within the southern hemisphere. It comprises the mainland, the highland of Tasmania and other small islands. It has membership in various international bodies like the United Nations, Organization of Economic Cooperation and Development, Asia Pacific Cooperation and the World Trade Organization. The countrys administration is divided into six states and two mainland territories. The common wealth parliament is superior to state legislation on most matters. The country has also focused on international trade by following economic liberalization policy. Although a large potion of the country is dry, Australia has a high gross domestic product (GDP). According to 2009 population estimates, the country has a population of approximately 21 Million indigenous persons. Demographic data shows that the population of the old people is growing very fast as compared to the working age groups which pose a danger to future national productivity. This paper will keenly analyze the Australian macroeconomic indicators for the past five years and present. An analysis of Australian macroeconomic indicators will examine key factors like unemployment, national income, gross domestic product, inflation and national economic growth rate among others.

Unemployment
Despite the economic recession, the labor market has remained very stable and strong. In the last five years, Australia has experienced an increase in employment rates. Employment statistics show that employment rates increased by approximately 0.3 annually for both part time and full time workers. Unemployment rates also decreased to 5.7  over the same time. The numbers of monthly hours spent on working also increased by 0.9. It is also estimated that the countries underutilization of labor stood at 13.8 last year (Sullivan et al, 1996).

Inflation
Over the last five years Australian inflation rates have gone down significantly. In 2008, there was a spirited government effort to lower inflationary rates further via the reserve bank. The country has also been facing a tremendous growth in demand for commodities for the last five years (Heijdra and Ploeg 2002).This demand has been occasioned by capital inflow and the export of primary commodities. According to the Australian bureau of statistics, the countries inflation rate stood at 1.2 in 2008.

Economic growth and Gross domestic product
Over the last five years, Australia had a steady economic growth averaging 3.5 percent.  For instance, Australian gross domestic product has grown steadily with an annual growth rate of 3.2 .  Economic expansion is boosted mainly by increased government expenditure on infrastructure like transport systems, roads and ports and construction of schools. In the last quarter of 2009 gross domestic product statistics showed an expansion of 0.2 . The RBA forecasts that annual gross domestic product will be lower than the long run average of approximately 3.3.

The country has emphasized on export of commodities where the major trade partners are Japan, China, India and the United States. Agricultural products form a substantial portion of the export earnings and contribute about 4  of the gross domestic product. The mining sector has also grown significantly over the past few years. For example, the sector has increased its contribution to the national gross product to 9.6 last year from 4 in 1994. Another major economic segment is the service sector. It is imperative to note that China has had an increased demand for raw materials which in effect has opened a big market for Australian export commodities. In effect, Australian companies are expanding their operation to cater for the growing demand in China. This has led to increased investment in the service and manufacturing sectors hence creating high number of employment opportunities.

Australian economy is one of the strongest and most resilient in the world. The country has a low unemployment and high rates of economic growth. The country has also managed to keep inflation rates low and stable. In my observation, Australian economic growth will gather pace this year irrespective of the global economic recession that has hit many countries in the world. In addition, the global increase in prices for commodities will enhance positive economic growth based on the fact that Australian government has adopted a policy that favors exportation and international trade.