Macro-Economic Benefits Of Australian Economy

Australia is well known for its mineral and farm products. It is the largest country in the Oceania. To keep this country flourishing, Prime minister Malcolm Turnbull asked me, the Minister of Trade to investigate two countries to work out which will benefit Australia if they import from them. The Australian economy has grown at around 2.5% per cent on average in the past two years. As the second largest economy in the southern hemisphere, Australia has a few macroeconomic objective targets. It is going to maintain 2-3% inflation and achieve natural rate of unemployment 4-5%. What’s more important is to achieve sustainable Economic Growth, which is between 3-4% and have a sustainable external debt, efficient allocation of resources and equitable …show more content…
Until 2015 China was the world's fastest-growing major economy, with growth rates averaging 10% over 30 years. Chinese economy has also grown by nearly 48 times from 1981. In 21st century, China becomes a global hub for manufacturing, and is the largest manufacturing economy in the world as well as the largest exporter of goods in the world. China is also the world's fastest growing consumer market and second largest importer of goods in the world. Manufacturing and industries comprises the largest part of China’s GDP. Major industries include mining and ore processing; machine building; armaments; textiles and apparel; cement; chemicals; fertilizers; consumer products, including footwear, toys, and electronics; food processing; transportation equipment, including automobiles, rail cars and locomotives, ships, and aircraft; telecommunications equipment, commercial space launch vehicles, satellites. Despite the dominance of Industries in the composition of China’s GDP, Services is catching up quickly. In 2013, it became the largest category of GDP with a share of 46.1%, while the secondary sector still accounted for a sizeable 45.0% of the country’s total output. China's supporting the services sector is with lower taxes, through the VAT tax reform pilot for service industries. China's stock market became the second largest stock market in the world with a market value of $4.48 trillion in 2014. The stock of Chinese investment in Australia is now more than fourteen times the level it was in 2005. China is the largest purchaser of Australian debt. China is also the world's largest producer of agricultural products, ranking first in the world for rice, wheat, potatoes, sorghum, peanuts, tea, millet, barley, cotton, oilseed, pork, and fish. About 34.8 percent of the labour force are employed in the agriculture sector. However, today, agriculture contributes