Australia’s Economic Growth Performance So Far

1. Australia’s Economic Growth Performance So Far

2. Introduction The quality of life in Australia is among the best in the world. Its economy has been expanding for over 21 yrs and it is considered to be the most stable nation as far as the Economy is concerned. It is one of the few Western nations that avoided a slump. While the country’s debt as a proportion of GDP is 10%, the unemployment rate is only 5.4%. What is the cause of this achievement? Certainty is one thing. Australia has recently been going through a mining surge. Basic materials are exported by the nation. China has been the nation’s top business partner since 2007.

3. In particular, lockdowns and regulations related to the nation’s reaction to the global pandemic have severely hampered the Australian economy. Nevertheless, it is anticipated that the economy will adjust to these changes through worker development and the adoption of a greener, more sustainable strategy. Here, we briefly discuss the present economic situation in Australia, how COVID-19 changed everything, and the prospects for the Australian economy going forward.

4. Australia’s Current Economic Situation

5. It’s crucial to first comprehend what we truly mean by the term “economy” in order to comprehend the current state of the Australian economy. There are a few fundamental concepts to understand even though we won’t be able to cover everything about what a market is right now. An economy is a network of relationships between the factors of creation. There are also regional economies, national economies, and global economies, so output and consumption take place on a variety of scales. Simply put, an economy consists of buyers and sellers as well as the players in the government who control and tax these exchanges.

6. Gross domestic product, also known as GDP, is a common metric for assessing an economy. The Gross Domestic Product (GDP) of Australia is a gauge of how much economic development there is or isn’t. Therefore, it is said that Australia’s GDP growth rate is rising when consumers can make big purchases and sellers can satisfy those demands. Sellers, however, are then unable to sell when consumers are unable to spend. It is said that Australia’s economy is collapsing in those circumstances. This concept of a healthy economy is also related to the Australian inflation rate, supply and demand, production prices, resource availability, and other factors. Again, we won’t get into the specifics of the business at this time.

7. Australian Economy’s Response to COVID-19

8. As a reaction to COVID-19, Australia implemented lockdowns, contact tracing, mask-wearing, travel bans, and social seclusion. But depending on the sector you worked in and where in Australia you lived, these changes could have a significant impact on the economy. Nevertheless, it cannot be denied that COVID-19 has a significant influence on both the Australian workforce and the country’s GDP. Among COVID-19’s effects are some of the following: • Looking out across the 2020s • Education Disruption • Healthcare Disruption • Supply Chain Disruption • Inflation Rate in Australia

9. Looking out across the 2020s

10. And so, here we are in the middle of 2022: An economy that roared back to life following the COVID recession, but had its typical trade and migration links to the world disrupted, now battles with labour and supply chain shortages as the spectre of a global inflationary crisis slowly approaches.

11. If the only goal of our strategy is to address the economic problems of 2022. However, the shocks from the Covidian period will have a much greater transformative impact on the Australian economy than just these current problems. Moving ahead, it is evident that Australia will need to reconsider many of its fundamental economic presumptions in order to succeed post-COVID. Over the next ten years, five new structural obstacles are likely to make a difference in whether we succeed or fail.

12. Disruption in the Educational System

13. Next, COVID-19 limitations have severely disrupted education at all levels. Over 87% of the pupil population worldwide, including every state in Australia, will no longer receive a K–12 education by March 2020, according to UNESCO. Australian students who were upskilling or pursuing higher education were also impacted, in addition to the fact that many of them were pulled out of school to learn for the first time in a virtual setting. New educational approaches will be necessary to support the Australian economic system’s development, especially for sectors that demand highly skilled workers or workers who learn best in a face-to-face environment.

14. Medical disruption

15. Once more, Australia’s economy is in jeopardy without a healthy labour population. Therefore, other medical treatments may be delayed as hospitals concentrate all of their efforts on avoiding COVID-19 outbreaks in the future. According to the findings of a WHO survey, even a year into the pandemic, about 90% of countries are still reporting one or more critical healthcare disruptions caused by COVID-19. As a result, even though these protocols are in place to protect Australians from COVID-19, the disruption in the provision of appropriate healthcare is another factor contributing to the destabilisation of Australia’s GDP.

16. Supply – Chain Breakdown

17. Although it was only barely touched upon earlier, the relationship between supply and demand is crucial to comprehend the state of an economy. You’re in problems whether there isn’t enough supply to meet demand from customers or there is too much supply compared to demand. The general economy operates under the same tenet. Supply chains have been severely harmed by COVID-19 and its associated travel bans, border restrictions, and workforce disruptions, as anticipated.

18. Conclusion Medium and small Australian Businesses are more likely to fail when they can’t procure enough products to sell to consumers. And the general economy suffers because there are fewer businesses to satisfy consumer demand. Apart from that the bitter economic relations between Australia and China have also contributed to disruption in the supply chain.