Discuss about the Economic Growth of the Australia and the China.
The countries, which has developed have the economic crisis, and the effects of that crisis are delays in some conditions. Different countries experience the different problems and the different solutions for the problems. Thither is a connection between the countries along with the world economy, which is closer and has the effects on the economy. The recovery that has noticed has the restrictions for some of the states as well as the regions. The crisis regarding the economic development of the countries occurs due to the poverty. The economic growth of the Australia as well as the China has the greatest impact on the guild. This essay includes the comparison between the economic growth of the Australia and the chinaware. How that economic growth involves the society both in a positive way as well as in a negative way. The Australians and the China both are the originating countries. There is the comparison of the economic growth pace for the past five years of both the countries. The Australians and the China are the developing countries, which has increased their coordination with each other and has the demand in the economy for the greater articulation in the global economic affairs (Graduate Institute Geneva, 2010).
The gross domestic product or the GDP is the important measurements for the evaluation regarding the carrying out of the economy of the Australia. The GDP figures have published by the Australian Bureau of Statistics, which has grounded on the annual and the quarterly. Below is the table, which shows the adjustment of the price changes to the gross domestic products for the Australia. This table actually reveals about the economic growth rate of the Australia. The appraisal of the GDP of the Australia is as follows:
|
years |
economic growth |
|
GDP (%) |
|
|
2011 |
2.7 |
|
2012 |
3.6 |
|
2013 |
2 |
|
2014 |
2.7 |
|
2015 |
2.4 |
Economic growth slowed and the recessional of the ten years, the Australia has the growth of the 3.4% because of the average per year. Until 2013, there had an improvement of the economic performance of the Australia and had the growth of the GDP with average 2.7% in the year 2013. The gross domestic product of the Australia is growing about the 3.3% in the second quarter of the 2016-15. At that place was the expansion, which is strong in the June 2012 and that brought the annual growth 2.9% for the year 2015-2016 financial years and went forward about the 100 quarters and do not have any experience in the technical recession. The yearly growth rate of the Australia is averaging about the 3.49% until 2016. The GDP annual growth has reached in the first quarter about the 9%. The economy of the Australia has ruled by the service sector about the 65% of the entire GDP. Nevertheless, the success of the economy has based on the mining, which is the 13.5% of the GDP and the agriculture, which is the 2% of the GDP because the Australia is the major exporter of the commodities. The other sectors involve the manufacturing, which is close to the 11% and the construction, which is about the 9.5% (Australia GDP, 2016).
The demand for the raw goods has increased in the Australia, which leads to the strong rise in the prices of the global commodity. This is the reason for the dynamic growth in the Australian economy. The terms of the trade were also high and caused the substantial rise in the power of the purchasing regarding the households. The price of the commodity was also high, and that is the cause of the boom in the mining investment, especially in coals and the iron. The increment of the Australia has mainly driven by the mining investments for the last 10 years. The Australian economy transits the mining boom from the investment phase to the production stage. The production capacity extends for the iron and the coal and this affects the Australia’s exports to the Asian market in a positive direction. The financial sector and the mining sector along with the related professionals and the services have increased the importance of the increment rate of the Australia in the past 5/ years. As compared, the manufacturing output has shows the shares, which is shrinking. So the result includes the mining and the production of the services instead of goods with the financial sector replaced the manufacturing, which is the biggest single industry in the economy (Australia Economy, 2016).
For the calculation of the GDP, the Australian Bureau of Statistics uses three methods: the production, the expenditure, and the income approaches.
The production approaches estimate the value added of all the producers by deducting the value of goods and services produced by the intermediate consumption, after that add taxes on products, and subtract the subsidies on the product.
This approach determines the expenditure of the final use of the goods and the services, which includes households’ consumption final expenditure, final consumption government expenditure, capital formation, and the net exports, which is the difference between the exports and the imports.
This approach helps to find out the economies income. The income of the economy has estimated by adding the employee’s compensation, gross operating surplus, gross mixed income, and the taxes and deducting the subsidies on the production and the imports.
The volume has determined at the level of the total GDP by denying the current price, which has determined by the implicit price deflator in the expenditure approach. Each of the approaches is finding out the same value of the GDP in the case of the measures compiled with the help of the sources of the various data. The GDP has categorized annually by the American Bureau Statistics by balance them in supply and using tables. By balancing the supply and with the help of the tables, all the three approaches that find out the value of the GDP are same.
The estimation of the GDP has acknowledged by the Australian Bureau of Statistics and about the issues regarding the GDP. As per the Australian Bureau of Statistics, the growth that is quarterly has adjusted in terms are very sensitive for the timing of recording the transactions. If the transactions record has delayed by the one- quarter, the movements of the adjustments have deformed for the three consecutive quarters. The quarterly national accounts are depending on the indicators, which has partial estimated in addition. The concept, as well as the scope of the series of the national accounts with the relevant partial indicator, is different from each other. For the improvements of the accuracy, the American Bureau of Statistics revised the figures with the help of the availability of the accurate information. Press releases that information, in which the data has revised (Trading Economics, 2016).
For the measurements of the economic performance, the growth of the GDP has considered as the most important indicator. The changes in the rates of the original GDP has known as the economic growth and the best scale for the ups and the downs of the economy. It has specifically used for the analysis of the short term. The growth figures of the GDP and the GDP report of the government are close to the important information, which gives the information that is important and that information shows the description of the state of the Australian economy.
The GDP growth of the Australia and its forecasting has described in various sources. The Reserve Bank of Australia, the Government, commercial banks, consultancies are watching the Australian economy and updates the GDP growth of the Australia. The twenty various forecasts on the GDP of the Australia has collected by the Focus Economics and give the average that is consensus forecast through the economists surveyed. From the minimum and the maximum projections of the GDP growth of the Australia, it gives the view about the future GDP growth rate of the Australia. The monthly Focus Economics Consensus forecasting for the Australia and the monthly Focus Economics Consensus for the reports of the Asia are involved in the forecasting is of the GDP growth of the Australia. The availability of both the reports is either on the ad-hoc basis or on the annual subscription. Download that report or buy, which is available in the online stores.
The economy of the China has grown at the slowest rate in 2015, which raises the pressure on the Beijing for addressing the fears about the slowdown, which affects the global markets. The growth about the 6.9% of the full year and shortage due to the expectations of the government of about 7% and the growth in the year of 2014 are about the 7.3%. The growth of the GDP has shown by the National Bureau of Statistics about the 6.8% in the month of the December. The expectations of the past quarter were concerned about the health of the second- largest economy in the world, which discloses the various challenges such as weak exports, the level of the high debt, and the slow investment. The industrial output of the China in the month of December was about the 5.9%, which has compared with the earlier and it has found from the forecasting that there is rise of about 6%. The fear of the China economy has came from the surface of the stock market. The growth of the GDP has not collapsed in the case of the figures of the fourth quarter are low as compared to the expectations. The additional Government actions have included in the Chinese economy, and that leads to the collapse. There was also the quarterly growth about 6.8% in the market instead of 6% (Trading Economics, 2016).
The Chinese economy has extended up to the 1.8% on the second quarter, which accelerates the revised growth about the 1.2% and beats the market expectations about the 1.6% extension and that is the strongest growth for the China in the month of the September 2015. The growth rate of the China has averaged in the 2010 until 2015 about the 1.85%, and in the second quarter of the 2011, it has reached at the 2.50% and now the growth rate of the GDP has declined. The National Bureau of Statistics publishes the report of the growth rate of the GDP of the China (Financial Times Ltd, 2016).
|
years |
growth rate of GDP |
|
in % |
|
|
2011 |
9.5 |
|
2012 |
7.7 |
|
2013 |
7.7 |
|
2014 |
7.3 |
|
2015 |
6.9 |
(Chinability, 2016).
The growth of the GDP has declined in 2015 up to the 6.9%. The growth is slow and causes the jitters for the world, as the China is the main parts of the global economy. The prices of the commodity were decreases and the cheaper oil hurting the producers of the oil and the surplus, which came from the steel output are decreases and in the danger of the survival for the national steel industries. The exporters of the China, as well as the investors, are worried about the demand, which has fallen in the market. The China has the fear about the global market as well as the capital, which is present in the country at the unrepeatable pace. The investors have the clues about the equity market of the China and the depreciated value of the currency at the beginning of the year, and the policy makers can make the slowdown, which neglects the financial crisis and the instability of the society for the China (Jones & Company, 2016).
The main sources for the growth of the China are the final consumption, Gross capital formation, and the net exports, which the difference between the total imports and the total exports. The consumption has not grown immediately, and the exports are declines. The main work for the rebalancement of the Chinese economy has based on the policy makers. The Government started the steering of the economy, which has excluded from the investment and the exports, and the growths are depending on the domestic consumption. Nevertheless, it is difficult to prove that the Chinese households are spending more and saving less. It will require the economic restructuring for the full rebalancing. This involves the state-owned enterprises, which has trimmed down for the over capacity sector like the coal mining and the steel processing, in which the profit is minimum. The indicators of the activity of the China are the fixed assets investment, retail sales, and the production of the industry. The figures for the growth of the China, which has included in the demand of the commodity (News Ltd, 2016).
The economy of the Australia has the experienced about the repeated growth and the characterized minimum unemployment, which involves the inflation, low public debt, and the financial system that is strong and the stable. From the 2012, the Australia has the experienced about the continuous economic growth for the 20 years and the average is about the 3.5% a year. The demand for the resources, as well as the energy from the Asia and the China, has grown and creates the channel for the investments of the resources, and the exports of the commodity have grown. The rate of the Australian dollar has become high and affects the manufacturing sector, and the largest parts are the service sector of the Australian economy and accountable for the GDP about the 70% and for the jobs about the 75%. The Australia was not that much affected by the financial crisis because of the banking system remains strong, and the inflation was in control. The Australia is the major exporter of the natural resources, energy, and the food. Because of this, the Australia attracts the foreign investments at the high level. It also involves the reserves regarding the coal, iron, copper, gold, natural gas, uranium, and the sources of the renewable energy. The various major investments like the US$40 billion for the project of the Gorgon Liquid Natural Gas are the major reason for the expansion of the resources sector. Australia is one of the markets where there is minimum restrictions regarding the imports of the goods as well as the services. The process has increased the production and the growth and creates the economy with high flexible and the dynamic. The Australia plays the vital role in the WTO, APEC, the G20, and the other forum.
The China has moved from the system, which has centrally planned for the market orientation that plays the major role in the global. From 2010, the China becomes the biggest exporter of the world. The beginning of the reforms is the phasing out the agriculture and expansion, which involves the price liberalization, fiscal decentralization, autonomy of the state enterprises increases, creating the system of the diversified banking, growth of the stock market, private sector, and the beginning of the foreign trade and the investment. The implementation of the reforms has done by the China in the gradualist fashion. In the previous years, China was renewing the support for the enterprises, which has state owned and it has considered the important, significant economic security and looking for the competitive national champions. The China keeps its currency associated with the US Dollar for years and it has revalued by the 2.1% against the US dollar and move to the system of the exchange rate that involves the various currencies. In the mid of the 2012, the China has become the second- largest economy in the world after the United States. The value of the dollar of the China’s agricultural and the output of the industry, which exceeds those to the US, the China has the second position after the US in the production of the services as well as the value. Still, it has the per capita income below the average. The government of the China faced many economic problems such as reduction in the high domestic savings rate and the corresponding demand of the domestic; sustenance of the proper growth of the work about the 10 millions migrants and various economic crimes; contains the damages of the environment and the society, which is related to the rapid transformation of the economic. The growth of the economic has progressed in the coastal provinces than the interior, and by 2011, it has more than the 250 million of the migrant workers, and they are dependent on the relocation of the urban areas for finding the work. The other consequences are the population control policy of the China, which has one of the rapidly growing countries in all over the world. The China has deteriorated the environment such as the air pollution, soil erosion, and decreases in the water table especially in North, which has the long-term problem. China lost the land due to the erosion and the economic development. The government of the China seeks to the addition of the production of the energy and the other sources of the coal as well as the oil are focus on the nuclear as well as the alternative development of the energy. In the year 2011, China faces the problems of the high inflation, which has resultants from the program of the credit-fueled stimulus. Some of the measures have taken for controlling the inflation, but the growth of the GDP has slow down about the 8% in the year 2012. The economic slowdown of the Europe has the contribution towards the China. It has further expected that there would be the growth of the China in the coming years 2013. Debts have become low from the stimulus program especially in the local government. The price of the property has challenged the policy makers currently. The five-year plan of the government has adopted in the year of 2011, which emphasized about the economic reforms and the increase in the domestic consumption for making the economy less dependent on the exports in upcoming futures. Only China has made the progress, which is marginal regarding the goals (Nationmaster, 2016).
Conclusion
It has concluded that the economic growth of the China is more as compared to the Australia and the affects of that growth are more than the Australia.
References
Graduate Institute Geneva.(2010).the financial and the economic crisis and developing countries. Retrieved on 29 september 2016 from https://poldev.revues.org/144
Australia GDP.(2016). GDP in Australia. Retrieved on 29 september 2016 from https://www.focus-economics.com/country-indicator/australia/gdp
Trading Economics.(2016). Australia GDP annual growth rate. Retrieved on 29 september 2016 from https://www.tradingeconomics.com/australia/gdp-growth-annual
News Limited.(2016). What the Chinese economic slowdown means for Australia. Retrieved on 29 september 2016 from https://www.news.com.au/finance/executive-lounge/what-the-chinese-economic-slowdown-means-for-australia/news-story/655a8cf4f052e34032ca34d7564c8aa0
Trading Economics.(2016).China GDP growth rate. Retrieved on 29 september 2016 from https://www.tradingeconomics.com/china/gdp-growth
Jones.D and Company.(2016). China economic growth in 2015 is slowest in 25 years. Retrieved on 29 september 2016 from https://www.wsj.com/articles/china-economic-growth-slows-to-6-9-on-year-in-2015-1453169398
Financial Times Ltd.(2016). The Chinese economy at the glance. Retrieved on 29 september 2016 from https://ig.ft.com/sites/numbers/economies/china
Chinability.(2016). GDP growth in china. Retrieved on 29 september 2016 from https://www.chinability.com/GDP.htm
Australian Economy.(2016). Australia economic outlook. Retrieved on 29 september 2016 from https://www.focus-economics.com/countries/australia
Nationmaster.(2016). Australia and China compared:Economic states. Retrieved on 29 september 2016 from https://www.nationmaster.com/country-info/compare/Australia/China/Economy
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