Australia and Malaysia Economies: Researchs and Analysis

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A. AUSTRALIA AND MALAYSIA ECONOMIES: RESEARCHS AND ANALYSIS

1. Introduction
Leading a country is totally not an easy task, thus the initial preferences of most governments are to keep the inflation and unemployment at acceptable rates in order to chase the ultimate goals: raising economic growth and GDP. The next few paragraphs are going to draw the pictures of two economies, Australia and Malaysia, by analyzing and comparing the four economic indicators above in the period from 2006 to 2009.

a) Gross Domestic Product (GDP)
The tables below show the sum value of final goods and services produced within two countries each year from 2006 to 2009 in term of current international dollar.

GDP of Australia and Malaysia|
Year Country| 2006| 2007| 2008| 2009| Australia| Total($ billions)| 737.128| 793.944| 830.182| 851.17| | Per Capital($ in thousands)| 35.313| 37.383| 38.356| 38.910| Malaysia| Total($ billions)| 329.318| 359.686| 384.389| 382.257| | Per Capital($ thousands)| 12.477| 13.4| 14.081| 13.769| (Source: International Monetary Fund, World Economic Outlook Database, Apr 2010)

General speaking, the table shows the upward trends in GDP of Australia and Malaysia during the global recession period. In details, GDP of Australia from 2006 to 2009 increased moderately from about $737 to $851 billion while Malaysia’s GDP is approximate $329 to $382 billion. Comparatively, Australia’s GDP contributed to the world’s GDP remain over twice as many Malaysia’ GDP did.

b) Economic Growth
The following table shows the data of economic growth each year of Australia and Malaysia within 2006-2009.

Economic Growth of Australia and Malaysia|
| 2006| 2007| 2008| 2009|
Australia| 5.9| 7.7| 4.6| 2.5|
Malaysia| 9.3| 9.2| 6.9| -0.5|
(Source: International Monetary Fund, World Economic Outlook Database, Apr 2010)

In this period, Malaysia’s economy had performed better than Australia’s in term of speed which it grew at an average rate of 6.2% while Australia’s was 5.2%. The trend of economic growth of two countries is illustrated as below.

(Source: International Monetary Fund, World Economic Outlook Database, Apr 2010)

The trend of economic growth of Australia shows that this economic is mature which a moderately falling to avoid an economic shock for the civilians. In contrast, Malaysia’s economy had performed even worse which was suddenly dropped off from 6.9% in 2007 to a negative number, -0.5%, in 2009.

c) Inflation Rate
The diagram above illustrates the fluctuations of inflation happened in Australia and Malaysia between 2006 and 2009. In an overview, there was a similarity in the tendencies of inflation of two countries during this time which they fell slightly between 2006 and 2007; suddenly climbed up in 2008 and; rapidly dropped down in 2009.

(Source: International Monetary Fund, World Economic Outlook Database, Apr 2010)

As shown in the table below, inflation rates of Australia and Malaysia began at 3.5 and 3.9% in 2006 respectively; then fell down to approximate 2% in 2007.

Inflation of Australia and Malaysia|
| 2006| 2007| 2008| 2009|
Australia| 3.5| 2.3| 5.3| 2.4|
Malaysia| 3.9| 2| 6.2| 0.6|
(Source: International Monetary Fund, World Economic Outlook Database, Apr 2010)

After that, inflation rates in these two countries grew from 2.3 to 5.3% and 2 to 6.2% respectively. Later on, immediate actions were made to curb the rates and stabilize price level. The year 2009 shows the major decreasing of inflation rate of two countries as actions were begun to take effects which the rates were dropped to 2.4% in Australia and 0.6% in Malaysia.

d) Unemployment Rate
The impact of the global recession was clearly shown in the labour markets of many countries which represented the increasing in the number of unemployment in which...
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