Assignment 2 Length:1500 words Weighting:25% Requirement: In February 2017, the Sydney Morning Herald presented the views of some economists regarding the performance of the Australian economy in...

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Assignment 2 Length:1500 words Weighting:25% Requirement: In February 2017, the Sydney Morning Herald presented the views of some economists regarding the performance of the Australian economy in 2017 (see http://www.smh.com.au/business/markets/economists-deeply-divided-over-australias-economic-path-in-2017-20170207-gu72ev.html). For Assignment 2 you are required to firstly read this article and to then prepare a report on the current (i.e., August/September 2018) state of the Australian economy and compare its performance with state of the economy in August 2017. In completing your report it will be necessary to examine the latest figures and the August 2017 figures for the following four economic indicators - economic growth (GDP), unemployment, inflation and trade (including the terms of trade, the current account, net foreign debt and the value of the Australian dollar). In examining the performance of the Australian economy it will be useful to outline any expected target values that may exist for the economic indicators. Finally, given your analysis, you are asked to highlight three major issues you believe are facing the Australian economy over the next 12 months and why you perceive these as of concern. Presentation of report The report should be between 1500 and 2000 words. This word limit does not include the abstract, tables, graphs and reference list. The report should be word processed using Times New Roman font size 12 with 1.5 line spacing. Structure of report Your report must include: · an appropriate title · an abstract (sometimes called an executive summary) summarising the report · an introduction in which you briefly explain what you are going to address in the report and why · the body of the essay broken into sections with appropriate section headings · a brief conclusion that should summarise your analysis · appropriate in-text referencing and a reference list at the end of the report. Although the requirements for presentation and structure may appear pedantic, they are not. In the business world you may often find yourself involved in writing a report – perhaps even for multilateral and government organisations such as the IMF or OECD. We suggest that you devote some time to developing this skill. Your future career can only be enhanced by your ability to communicate effectively in writing. Marking criteria Assignment 2 Your report will be marked against the following criteria: · Abstract (2 marks) · Introduction (1 mark) · The body of the report providing: · An appropriate description and discussion of the current state of the Australian economy as reflected by the four economic indicators - economic growth, unemployment, inflation and trade in Australia and the economy in 2018. You also need to compare the current situation with that in August 2017(8 marks) · A succinct description of three major issues facing the Australian economy over the next 12 months. (6 marks) · Conclusion (1 mark) · Evidence in the report of a depth of research (3 marks) · Accuracy in referencing (Harvard Style) (1 mark) · Presentation, grammar, structure, etc. (3 marks) TOTAL FOR ASSIGNMENT 2:25 marks (weighting 25% of total marks for the unit) Some advice about Assignment 2 Your short “Abstract” needs to describe the aim of the report and provide a brief overview of the economic targets as well as the issues facing the economy. It should be approximately 500 words. The Abstract is worth 2 marks The "Introduction" is a brief paragraph or two that outlines the aim of the report (i.e., what you are examining) and how the report is structured. The content of your assignment should generally reflect the marking criteria. REMEMBER that an Introduction is different to an Abstract. The Introduction is worth 1 mark. The "body" of the report is the content of your research and analysis. You may want to consider dividing you report into different sections with appropriate subheadings. You should begin the body of your report with a discussion and comparison of the values of the four economic indicators under investigation (Economic Growth (GDP), Unemployment, Inflation and Trade) in Australia in 2017 and 2018. You could also discuss the government’s targets for these indicators. Ensure that you are clear on what you are presenting with regard to the indicators- e.g., do your indicators show GDP, growth in GDP over time or GDP per capita growth? This section is worth 8 marks Once you have discussed the variables you need to provide your (well thought out) opinions about three major issues facing the Australian economy over the next 12 months. You need to support your opinions with reputable research. This section is worth 6 marks. In your "Conclusion" you need to discuss briefly the Australian economy in 2017 and 2018 and what you see as the major issues facing the economy. This section is worth 1 mark. You are expected to have used a number of references to enable you to prepare this report. This section is worth 3 marks. You also need to ensure that you have consistently used correct Harvard referencing throughout the report and that you have correctly formatted your Reference List at the end of the report. Consistent and correct referencing includes correctly referencing all charts and statistics used in compiling your report. Only include the references that you actually used in your report. This section is worth 1 mark. Finally but importantly pay careful attention to the structure of your report as well as presentation and grammar. This aspect of your report is worth 3 marks. You should check your “turnitin” value before submitting your assignment. A value of over 50 per cent should raise some concerns for you. If you are still uncertain about using turnitin refer to the documents in the unit’s MySCU site. There are a number of useful resources you can use to gather information but make sure you are using reliable sources and that all sources are fully and correctly referenced. Useful sources of information might include the following web sites: · Australian Bureau of Statistics http://www.abs.gov.au · The Reserve Bank of Australia http://www.rba.gov.au · Australian Government Treasury http://www.treasury.gov.au · Department of Finance http://www.finance.gov.au · Productivity Commission http://www.pc.gov.au · World Trade Organization http://www.wto.org · OECD http://www.oecd.org · ABC News http://www.abc.net.au/news/ · Trading Economics http://tradingeconomics.com Some newspaper sites may also be useful. For example, the Australian Financial Review, the Sydney Morning Herald, the Australian, the Guardian and other major newspapers. The editions around the time of economic policy announcements are especially useful. You will also need to look closely at some recent budgets that are usually brought down in May (details can be found at http://www.budget.gov.au) and monetary policy announcements about interest rates can be found at http://www.rba.gov.au. The RBA's quarterly statement on monetary policy is also a very useful source of information on the economy and its status
Answered Same DaySep 04, 2020ECO10250Southern Cross University

Answer To: Assignment 2 Length:1500 words Weighting:25% Requirement: In February 2017, the Sydney Morning...

Soma answered on Sep 12 2020
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Title: Current state of Australian economy
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Abstract
Australia has shown phenomenal economic growth without recession for last 26 years. Last time Australia has entered economic recession on June 2001. In the last 26 years of unprecedented economic growth, Australia has navigated Asian financial crisis, dot com bubble even the recent global financial crisis mostly without scars. This is no doubt a remarkable achievement especially when most of the economies we
re highly affected by the global economic meltdown in 2008. The resource rich economy has weathered out the ill effects of Global Financial crisis far better than any other economy in the developed world. Australia has grabbed the record for longest strength of economic growth in modern history. Mining investment boom as well as the huge exports of its natural resources are the key drivers of its uninterrupted economic growth. But Australia’s economic activities have been temporarily slowed down due to fall in global commodity price, collapse in mining investment and the economic slowdown in China. Global commodity prices have improved and Australia’s economic expansion has again started in mid-2016.
The economic outlook of Australian economy is promising for the near term. Global economy is growing at a rapid rate of 3.9% this year and beyond. According to latest estimate of IMF, Australia will grow at the rate of 3.1% in the next year- the estimate is above the recent forecast. Australia has the record of longest period of low inflation. Many economists are in the fear that Australian economy has locked with low inflation and weak wage growth. Increased competition in the global and domestic level as well as the value of Australian dollar are the key drivers for persistent low inflation in Australia. At the backdrop of low inflation and weak wage growth, RBA is less likely to lift the interest rate until 2019. (Hutchens, 2018)
The high household debt, housing bubble and China’s continues slowdown pose a huge threat to Australian economy. Household debt is rising at a record level high and act as a major obstacle to Australia’s economic growth. This is because higher debt will affect the household spending and restricts the growth of the economy. The debt to income ratio has reached to 189.6% and the trend is no doubt alarming. (Hutchens, 2017)
In short households in Australia is carrying more debt and at the same time they are experiencing very slow pace of nominal income growth. Weak bargain power of the trade union is considered as the major cause for weak wage growth. Policymakers need to achieve an effective policy solution to deal with such challenge. Australia’s economic success even after the end of mining investment boom has facilitated by the suitable economic policies, currency exchange rate and its gradual transition from commodity economy to service economy. Moving forward, with the help of suitable monetary policy from RBA and favourable domestic conditions, the job gains and the wage growth are expected to rise in the years ahead. (Keating, 2018)
I. Introduction:
The study has obtained the data for the key economic indicators for both August 2017 and August 2018. The major macroeconomic indicators include real GDP, unemployment rate, inflation rate and terms of trade. The primary objective of this report is to address the current state of economic performance of Australia in 2018. With the help of current data and statistics for major economic variables this report puts an attempt to compare and contrast the current state of economic activity of Australia with that in August 2017. (Horswill, 2017)
II. Comparison of the values of the four economic indicators
A. GDP growth rate:
Australia's economy has grown 3.4 percent year-over-year in the June quarter of 2018. As far as the June quarter is concerned, the economy grew by 0.9% seasonally adjusted chain volume in 2018 compare to same quarter in 2017. (ABS, 2018)
In the June quarter of 2017, Australian economy grew at the rate of 0.8% and 1.9% for the year. Half the improvement in growth was contributed by consumer spending – surge in government spending and increased exports also play a major role. Australia has one of the highest population growth rate among the developed world – the population has grown by 1.55% in 2017.
Australia has exceeded the growth rate in June quarter 2018 with 1% cent growth and 3.4% for the year. According to the data released by The Australian Bureau of Statistics commodity exports are the key driver of economic growth. As the global commodity prices have revived, the growth in exports have contributed half the growth of GDP. Mining sector output that includes coal, iron ore and LNG production has grown by 2.9%. (Janda, 2018)
Gross Domestic Product by Expenditure in Constant Prices: Total Gross Domestic Product for Australia, Growth Rate Previous Period, Quarterly, Seasonally Adjusted
    Frequency: Quarterly
    
    observation...
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