1. Discuss Australian GDP components and economic growth during the last 10 years. Which industries have the highest growth and what are the main drivers for that growth? Analyse Australian Government...

FINANCIAL ACCOUNTING
AUSTRALIAN ECONOMIC GROWTH
Table of Contents
Introduction    3
Australian economic growth over the years    3
Industries that have driven the economic growth    4
Major policies to promote economic growth    6
Conclusion    8
References    9
Chosen Question:
1. Discuss Australian GDP components and economic growth during the last 10 years. Which industries have the highest growth and what are the main drivers for that growth? Analyse Australian Government major policies to promote economic growth during that period.
Introduction
Gross Domestic Product is one of the important indicators of economic growth. In addition to that, inflation, employment rate and others are important indicators of economic growth. In the past10 years, the global economy has grown at a decent pace. However, there have been instances like the Global Recession when the global economy suffered a serious setback. This assignment deals with the economy of Australia and its growth in the past 10 years. The industries that have driven the economic growth of Australia have been discussed along with the policies that have been instrumental in driving such a growth.
Australian economic growth over the years
Australia is one of the largest mixed-market economy across the world with a Gross Domestic Product GDP0 of A$ 1.69 trillion in the year 2017. As per the views of Luke (2018), in terms of wealth per individual, it ranks second in the world after Switzerland. The industry share of the key output sectors are as follows: Health and Education 13%, Finance 9%, Manufacturing 6%, Construction 8% and Mining 8%. The population of Australia is around 24.8 million. The employment ratio of the country is 62% and the average debt per person is round 170% of average monthly income. This indicates that the country does not have a significant debt. The life expectancy rate is on an increasing trend along with the percentage of children enrolled in school. This is an indication of a stable country in terms of development.
The GDP growth rate of Australia has been     less than 5% in the past 10 years. This is because of the fact that Australia is already a developed country. There has been certain changes in the key performing sectors in the last decade. According to the views of Hatfield et al. (2015), the manufacturing sector has not flourished as per the expectation. However, the service sector and the mining sector has been the key drivers of economic growth in the past decades. The policies of the government aimed at promoting trade, low inflation target, spending on infrastructure have been helpful in maintaining the growth of the economy. The policies of the government focused on improving the labour compensation and increasing job roles has led to flourishing of the economy (Jericho, 2018).
Figure 1: Economic growth rate of Australia
(Source: Jericho, 2018)
Industries that have driven the economic growth
The increase in the demand of raw commodities in the international market, especially in developing countries has fuelled the economic growth of Australia in the past few decades. A strong increase in commodity prices has played an active role in shaping the dynamics of the Australian economy. Rise in the prices of commodity prices has ignited the investment in mining, especially iron and coal. According to the perspective of Bloch et al. (2015), the increased investment in mining has increased the production of coal and iron that has increased the value of exports by a significant percentage. IN the last 10 years, the mining sector along with the financial and its related professional sector has ignited the growth of Australian economy in the last 2 decades. On the other hand, the contribution of manufacturing sector to the Australian economic growth has seen a declining trend. Due to this, the Australian economy revolves around mining and production of services rather than manufacturing. The financial sector has replaced the manufacturing sector and has emerged as the largest single industry in the economy.
Trade and service sector has also played a crucial role in the growth of the economy. The sector has shown a 23.3% increase in the jobs that is a significant number. The average advertised salary of the sector was more than $60000. The federal government has initiated an investment of $75 billion in the infrastructure over the next 10 years. The jobs role in the health and education sector has increased by 11.1%, and has emerged as one of the fastest growing industry in Australia. In the engineering sector 12000+ job roles were created that led to an increases of 26.7% in the job add. Investment of $10.3 billion in the research and development sector has created a number of job roles (Hutchens, 2018)....