Australia macroeconomic analysis
Macroeconomic analysis of Australia
Australia’s economy is the world’s top 10 and is shown to be stable during the past 20 years. The GDP growth rate, averages 3.5% and the GDP per capita is increasing, meaning that people have bigger buying capability and would be willing to purchase B&O’s expensive products. Unemployment rate has grown dramatically, despite declining for several years, it has jumped to 6.2% in 2014 which was caused by lack of available positions, rather than lack of relevant experience. Inflation is sustained rather low at a 2.3% in 2014 and the bank system is stable, which is beneficial for investors. For B&O the overall state of economy is an advantage, since it hasn’t undergone dramatic changes, remained almost unaffected by the recession in 2008 and is expected to experience further growth. Australia has a free trade agreements with different countries and is continuing to expand to Europe. Also there is an active Danish-Australian Chamber of commerce for ease of trade between the two countries. Another benefit is that the Australian market is open and encouraging foreign investments and doesn’t have big limitations for investors. Since it is a company policy for B&O to completely internationalize with their own shops, instead of retailing, Australian law wouldn’t prevent them of doing that. One of the country’s biggest imports is technology equipment and the consumer electronics industry is continuously growing and gaining market share. It would be beneficial for the company to join CESA- Consumer electronics supplier association, which has a big influence on the market. Furthermore, in the recent years, relations between Australia and Denmark have strengthened and Danish investments amounted 6.6 billion DKK which has created an image in the citizen’s minds of quality of Danish originating products. Another field for B&O to operate in is the film industry, selling to businesses, since it has been growing rapidly and a lot of big companies
Australia’s economy is the world’s top 10 and is shown to be stable during the past 20 years. The GDP growth rate, averages 3.5% and the GDP per capita is increasing, meaning that people have bigger buying capability and would be willing to purchase B&O’s expensive products. Unemployment rate has grown dramatically, despite declining for several years, it has jumped to 6.2% in 2014 which was caused by lack of available positions, rather than lack of relevant experience. Inflation is sustained rather low at a 2.3% in 2014 and the bank system is stable, which is beneficial for investors. For B&O the overall state of economy is an advantage, since it hasn’t undergone dramatic changes, remained almost unaffected by the recession in 2008 and is expected to experience further growth. Australia has a free trade agreements with different countries and is continuing to expand to Europe. Also there is an active Danish-Australian Chamber of commerce for ease of trade between the two countries. Another benefit is that the Australian market is open and encouraging foreign investments and doesn’t have big limitations for investors. Since it is a company policy for B&O to completely internationalize with their own shops, instead of retailing, Australian law wouldn’t prevent them of doing that. One of the country’s biggest imports is technology equipment and the consumer electronics industry is continuously growing and gaining market share. It would be beneficial for the company to join CESA- Consumer electronics supplier association, which has a big influence on the market. Furthermore, in the recent years, relations between Australia and Denmark have strengthened and Danish investments amounted 6.6 billion DKK which has created an image in the citizen’s minds of quality of Danish originating products. Another field for B&O to operate in is the film industry, selling to businesses, since it has been growing rapidly and a lot of big companies
References: https://www.cia.gov/library/publications/the-world-factbook/geos/as.html http://cesa.asn.au/ http://en.wikipedia.org/wiki/Australia%E2%80%93Denmark_relations http://www.tradingeconomics.com/australia/unemployment-rate