Introduction
Macquarie bank and the Australian Power and Gas companies are few of the top performing companies which have greatly contributed to the Australian economy excellent performance. Australia Power and Gas Company provide its consumers around New South Wales, Queensland and Victoria with abundant source of energy. The sources of energy include the gas and the electricity. On the other hand, Macquarie bank is one of the largest banking companies providing its services to the Australian population. Additionally, the bank carries out its operations in 28 other countries recognized by the Australian Prudential Regulation Authority(Pearson, Gail 5).
Australian Economic Status
Australian economy is the 17th largest economy in the world. The country is regarded to be the primary producer of various products such as the agricultural products, energy, and minerals. Agricultural and mining exports accounts for an approximate value of 9% of the Australian economy. However, the country has small manufacturing sector when compared to other advanced countries. The service sector contributes to the largest portion of employment and economic activities in the country. The services include retail trading, communications, transport, finance and insurance among other service providing organizations (Laurenceson, James, and Joseph 24).
The country’s economic export volume is approximately 2% annually. Australia operates a surplus trade with most of the Asian countries. Most of the country’s deficit has been with the United States and Europe. The country engages in bilateral trade with other countries such as Thailand, New Zealand and Singapore. Unlike other developed economies where the country’s debt proportion is owned by the government, Australia’s foreign debt is largely owned by the privately owned business (Mohamed, John, and Ahmed 35).
The country’s rapid economic development is largely linked to the immense immigration program and the evidenced expansions in the mining and services sectors including the banks. The introduction of structural reforms has compounded to the Australia’s economic growth. The reforms include financial systems deregulation, tariffs reduction, removal of trade barriers, privatization of the commercial enterprises owned by the government and the development of contestable markets in the country. Some of the country’s agricultural exports include meat, wool, wheat, and dairy products among other agricultural exports (Nieuwenhuysen, John, Peter, and Margaret 14).
The small size of the Australian internal market has facilitated the growth and development of the Australian manufacturing industries. The rapid development of the Australian manufacturing sector is attributed to the introduction of policies which protect the manufacturers from the competition arising from the imports and high tariffs linked to the imports. Additionally, construction and building sectors contributes to approximately 6% of Australia’s economic growth and employment. These include sectors such as housing, non-residential constructions and the contribution from the service providing sectors (Gup, Benton 5).
Australia’s economic fluctuations over the past five years
The structure of the Australian economy has shifted its primary focus from agriculture and manufacturing to services provision in the past five years. Additionally, mining industry has received much focus in the recent past. The economic activity has shifted towards the states rich in various resources. The states include the Western Australia and the Queensland states. The shift in focus is attributed to the increased demand for services, industrialization in the Middle East, technical changes and varied economic reforms (Pearson, Gail 45).
Australia has experienced a dramatic expansion in the service industry in the past five years. This is due to the expansion of the manufacturing industry which operates concurrently with the service industry. The growth of the service industry is also associated with the technological advancement and competition from other foreign suppliers of services provided within the country. Despite the expansion of the manufacturing industry in the past five years, its share has drastically dropped. This is due to the sharp competition from the external producers and sharp growth in the service industry (Meredith, David, and Barrie 64).
The nominal output obtained from the mining industry has increased over the past five years. This is evidenced by the increase in the output from 6% in the year 2002 to 8% in the year 2010. Strong share output and employment opportunities have increased in various states in the past five years. These states include the Queensland and the Western Australian states. Additionally, the population growth in these states has risen steadily. The steady population growth in the past five years is attributed to the high immigration rate and dense the heavy industrialization in these states (Mohamed, John, and Ahmed 38).
Ways in which the laws of demand and supply have affected products in Australia
The constant fluctuations between the demand and supply of various products and services have affected greatly the Australian economy. Changes in market demand have greatly contributed to the shaping of the Australian economy. This includes change in the number of buyers in need of specific products provided in the Australian markets. For example, increased demand rates of the various services in the country led to the growth and development of the service providing industries. Additionally, increase in bilateral trade between various states has facilitated the need for the diversification in the country’s production (Meredith, David, and Barrie 34).
Stabilization of the Australian economy has contributed to the increased earnings to its citizens. Increased consumer income has led to a high demand of luxurious goods and services which has facilitated the growth of various industries such as the manufacturing and the services providing industries. The availability of substitutes and complementary products has contributed to the growth and development of the manufacturing industries. The presence of these products has minimized the effects of external competitions to the local manufacturers. Technological advances in the country have led to the introduction of better and highly efficient methods of production. Increase in production efficiency leads to production of more units in an organization hence, increasing supply of various products in the country (Gup, Benton 15).
The shifts in consumer preferences have also influenced Australia’s economic development. Consumers shift of preference from the agricultural production to service and mining industry have facilitated the growth of these industries. Consequently, growth of these industries secondary to the shift in consumer preferences has improved economic development through creation of job opportunities and promotion of industrialization.The abundant presence of natural resources such as the mineral ores has led to the growth of the mining industries. This has led to reduced costs of production and increased exports to other countries contributing to the economic growth (Nieuwenhuysen, John, Peter, and Margaret 24).
Australia’s financial and economic growth in the past five years
Australian financial system has experienced different kinds of pressures in the past five years. Financial crisis is one of the crises which heavily affected the country’s overall productivity. Despite the crises, the financial systems own $4.6 trillion which is thrice the country’s nominal GDP. The financial system has been fairly stable when compared with those of other developed countries. The country’s economic growth is exceptional. It has experienced a steady economic growth in the past five years. This is evidenced by the overall GDP growth of 7.25% in 2011 from 6.25% in 2006 (Kriesler, Peter 30).
The financial and economic growth is attributed to the structural reforms and commodity demand and prices boom due to business relations with China, India and different developing industries. The country has abundant source of minerals ores such as bauxite, metallurgical coal, thermal coal and copper ore among other ores. The country’s economy budget has been in surplus in the past five years. The country has witnessed a significant drop in the amount of debts in the past five years. This is due to the introduction of the privatization programs by the government and pension liabilities (Laurenceson, James, and Joseph 74).
Effects of the financial and economic growth to the country
Financial and economic growth has been beneficial to the Australian economy and the population at large. The growth has facilitated the growth of various industries specialized in the production of different goods. Industrialization has benefited the locals through the promotion of the production of high quality products and services which meet the consumer demands. Additionally, industrial developments have led to the creation of job opportunities for thousands of Australian population (Pearson, Gail 75).
The financial and economic growth has enhanced the country’s competitiveness. This includes its competitiveness in terms of the quality of products and services provided outside the country. The developments have heightened country’s image. This has consequently led to the attraction of foreign investors into the country to venture in various businesses in the country. The growth has facilitated full exploitation and utilization of the available resources. Consequently, this has contributed to the stabilization of the country’s economy (Mohamed, John, and Ahmed 50).
Conclusion
Works cited
Gup, Benton E. The Financial and Economic Crises: An International Perspective. Cheltenham: Edward Elgar Pub, 2010. Internet resource.
Kriesler, Peter. The Australian Economy 3: Economics Drives Today's News - Read This Book to Understand How. Sydney: Allen & Unwin, 1999. Internet resource.
Laurenceson, James, and Joseph C. H. Chai. Financial Reform and Economic Development in China. Northampton, MA: Edward Elgar, 2003. Print.
Meredith, David, and Barrie Dyster. Australia in the Global Economy: Continuity and Change. New York: Cambridge University Press, 2012. Print.
Mohamed, Ariff, John H. Farrar, and Ahmed M. Khalid. Regulatory Failure and the Global Financial Crisis: An Australian Perspective. Cheltenham, Glos, UK: Edward Elgar Pub, 2012. Internet resource.
Nieuwenhuysen, John P, Peter Lloyd, and Margaret Mead. Reshaping Australia's Economy: Growth with Equity and Sustainability. Cambridge, UK: Cambridge University Press, 2001. Print.
Pearson, Gail. Financial Services Law and Compliance in Australia. Cambridge: Cambridge University Press, 2009. Print.
