Economic Issue

Topics: Unemployment, Economy of Australia, Economics Pages: 4 (1170 words) Published: July 3, 2013
Australia’s Economy

Introduction to Australian Economy:
As Australia is known as the strongest economy in the developed world and it is expected to outperform all comers for the next two of the years. As the economy of the Australia was at peak for providing employments but slowly and gradually it started to decrease, and the rate of unemployment increases it is due to different reasons. Unemployment is a scourge in countries at all levels of economic development, It Brings poverty and despair and exclusion from the mainstream way of life. It stunts the development of children and generates conflict in the home. All market economies have some unemployment arising from the dynamic birth, growth, decline and death of firms and the changes in employment that follows. This frictional unemployment is tolerable. Unemployment does its greatest damage to the individual and her or his family when it persists for months or even years. Australia Economy

Australia's abundant and diverse natural resources attract high levels of foreign investment and include extensive reserves of coal, iron ore, copper, gold and renewable energy sources which provide employment to a people and boosts the economy. A series of major investments, such as the US$40 billion Gorgon Liquid Natural Gas project, will significantly expand the resources sector. Australia also has a large services sector and is a significant exporter of natural resources, energy, and food. Key tenets of Australia's trade policy include support for open trade and the successful culmination of the Doha Round of multilateral trade negotiations, particularly for agriculture and services. The Australian economy grew for 17 consecutive years before the global financial crisis. Subsequently, the former RUDD government introduced a fiscal stimulus package worth over US$50 billion to offset the effect of the slowing world economy, while the Reserve Bank of Australia cut interest rates to historic lows....

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