Task 2 Interpreting Economic Data
GRADUATE SCHOOL OF BUSINESS & LAW
BUSM4126 - ACCOUNTING FOR BUSINESS DECISIONS
Assessment Task Two:
Interpreting Economic Data
Executive Summary
The purpose of this study is to provide a brief analysis of some key economic measures pertaining to the health of the Australian economy. With the global economic outlook still very much in a state of flux following the GFC it is vitally important for the Australian Government and Reserve Bank of Australia (RBA) to closely monitor and control the ongoing state of the Australian economy relative to the rest of the economic world.
The focus of this analysis will be on Australia’s central bank – The RBA – and the ways in which the RBA employs Monetary …show more content…
Coupled with this increasing money supply, we have also witnessed the corresponding, and expected, interest rate cuts (see Figure 1.5 on page 7).
According to the website - Index Mundi - the stock of broad money grew from $1.501 trillion in 2011, to $1.708 trillion in 2012 (source - …show more content…
Whilst many may believe that the mining sector boom has driven the success of our economy for the past decade, allowing us to successfully traverse the GFC, a strong case could also be argued that our success is more attributable to sound economic policy development and implementation.
Testament to this statement is the fact that the then Treasurer Mr Wayne Swan was awarded the prestigious finance minister of the year award in 2011 for his handling of the Australian economy. The award is judged by leading European banking and finance magazine Euromoney on advice from global bankers and investors. The Labour Government, and Mr Swan, presided over the economy which grew while most of the world 's developed economies stalled.
REAL GDP IN AUSTRALIA
As discussed in Question 1 (on page 4), the Australian economy is growing favourably (albeit modestly) by comparison with other similar economies (post GFC). Figure 1.1 below highlights the major impact on world GDP that was felt as a result of the GFC in 2008/09. Although world GDP dipped into the negatives, Australia’s ‘Real’ GDP remained relatively strong by comparison at around positive 1 - 2% for the same period – which was the best performance of all OECD countries for that period (OECD Website, 2013)
Figure 1.3 – World GPD
BUSM4126 - ACCOUNTING FOR BUSINESS DECISIONS
Assessment Task Two:
Interpreting Economic Data
Executive Summary
The purpose of this study is to provide a brief analysis of some key economic measures pertaining to the health of the Australian economy. With the global economic outlook still very much in a state of flux following the GFC it is vitally important for the Australian Government and Reserve Bank of Australia (RBA) to closely monitor and control the ongoing state of the Australian economy relative to the rest of the economic world.
The focus of this analysis will be on Australia’s central bank – The RBA – and the ways in which the RBA employs Monetary …show more content…
Coupled with this increasing money supply, we have also witnessed the corresponding, and expected, interest rate cuts (see Figure 1.5 on page 7).
According to the website - Index Mundi - the stock of broad money grew from $1.501 trillion in 2011, to $1.708 trillion in 2012 (source - …show more content…
Whilst many may believe that the mining sector boom has driven the success of our economy for the past decade, allowing us to successfully traverse the GFC, a strong case could also be argued that our success is more attributable to sound economic policy development and implementation.
Testament to this statement is the fact that the then Treasurer Mr Wayne Swan was awarded the prestigious finance minister of the year award in 2011 for his handling of the Australian economy. The award is judged by leading European banking and finance magazine Euromoney on advice from global bankers and investors. The Labour Government, and Mr Swan, presided over the economy which grew while most of the world 's developed economies stalled.
REAL GDP IN AUSTRALIA
As discussed in Question 1 (on page 4), the Australian economy is growing favourably (albeit modestly) by comparison with other similar economies (post GFC). Figure 1.1 below highlights the major impact on world GDP that was felt as a result of the GFC in 2008/09. Although world GDP dipped into the negatives, Australia’s ‘Real’ GDP remained relatively strong by comparison at around positive 1 - 2% for the same period – which was the best performance of all OECD countries for that period (OECD Website, 2013)
Figure 1.3 – World GPD