In August 2016, Glenn Stevens, the then Governor of the Reserve Bank of Australia, presented an overview of the world and Australian economies. For Assignment 2 you are required to firstly read this speech and to then prepare a report on the current (i.e. September 2017) state of the Australian economy and compare its performance with state of the economy in August 2016. You could use the RBA report to guide your thinking on how to prepare your report. In completing your report it will be necessary to examine the latest 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 exist for the economic indicators. Finally, given your analysis, you are asked to highlight three major issues facing the Australian economy over the next 12 months and why you perceive these as of concern.

Executive summary

The world economy had faced a major financial crisis during the mid-2000s. The Great Stability of the major developed countries that marked the features during the 1980s was not a permanent global economic state and was faced by economic downturns all over the globe. However, as Mr. Glenn Stevens had said, that the confidence and stability marking those years of growth have made the experts undermine or rather underprice the risks, and this high leverage could not take the shock when it ultimately struck.  

Overall growth in the global platform has been slow and was more aggravated by the show of weak outcomes by the major advanced countries. The world economy has been pretty volatile and variable in terms of GDP growth, inflation and trade terms and unemployment.

This report focused on analysis of two very important indicators, namely GDP and Inflation of macroeconomics, in the context of Australia. The report has discussed the Australian economy performance in contest of four indicators, namely GDP, trade, Unemployment and inflation. The important dimensions of each factors analysis would provide the basic framework of the report and how it would be pursued. The report focuses on discussing the GDP and Inflation, mainly of past 1 years putting especial concentration on the case of Australia which is the centre of this report study. The report has used qualitative data for finding and discussing data related to the report topic and uses both primary and secondary sources of data for drawing the conclusion.

Introduction

In August 2016, the then Governor of Reserve bank of Australia, Mr. Glenn Stevens, discussed the economic condition of Australia during the luncheon meeting at Anika Foundation. He gave a clear picture of the Australian economy over the last few decades and also some inputs on the future and present economic framework of the country. This report, based on his speech, shall be discussed how the Australian economy is performing at present and how different it is in comparison to the condition in the year 2106. Also, this report will explore the future issues that might arise and the implications of the same

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