Effects Of China 's Fiscal For The Australian Economy

So naturally, China's resource-hungry manufacturing industry is a perfect match for Australia's Resource rich, yet 'manufacturing ability' poor economy. Australia's day to day living costs are astronomical when compared to China's. Consumer prices in Australia are on average 115.87% higher than those in China, although countering that fact, Australia's purchasing power parity is 141.66% higher than China's. (Cost of living comparison between China and Australia - Numbero) Hence, levels of income for respective jobs reflects the economic situation in each nation (i.e Australia's salaries must be higher to counteract our high cost of living, whereas China's wages can be set lower, due to the lower cost of living.) At the time of writing, 1 Australian Dollar buys approximately 5.3 to 5.8 Renminbi Yuan (The Economist.) Chinese culture also places a greater emphasis on the system of bartering for goods and services, which is a system of trade Australia fails to utilise. At its current rate, China's economy will continue to experience growth, and will likely continue to be one of Australia's biggest import and export

The Australian PMI has been mostly below 50 with an average of 47.98 in past 12 months and an average of 47.94 this year, which suggests a likely contraction in manufacturing. Fluctuation is expected due to its volatile nature but a large percentage change is likely to drive the economy. A 14.03% growth in July is expected to lead to an increase in the coming month but contraction may continue in 2015-2016. From these PMI figures, Australia’s economy might not be performing at its best. The industry might suffer

Also, Australia’s and China’s Foreign Direct (FDI) and Gross Domestic Product (GDP) growth saw huge declines during the Global Financial Crisis (GFC). Both economies, being highly export driven, especially China saw GDP declines from 2007 to 2008. Australia declined by 1.9% and China by 4.6%. Both economies also experienced a huge fall in FDI—Australia’s FDI declining 24% from the previous year and China’s declining 36%. The huge economic decline and lack of confidence in both economies raised the unemployment rate in Australia from 4.6% to 5.4% and 4% to 4.3% in China.

Australia has also experienced a rising terms of trade to 130.0 in late 2011 due to the commodities boom as a result of the industrialization of the BRICs, whereby Australia has experienced high export and national income, but has resulted in less competitiveness in other sectors due to the high AUD, causing the ‘Dutch disease’ whereby non-commodity sectors lose competitiveness. Similarly is can be seen in its narrow export base whereby in 2012-13 one third of export revenue came from coal and iron ore ($96 billion from 300 billion), furthermore 57% of Australian export revenue is made up of mineral and energy exports, whereby Australian growth has been largely fuelled by commodity exports and mining boom.

Australia and China adopt very different economic systems in order to cater the best for their society. However, Australia's economic system is more successful than China's and, due to the writer's right-wing value system, will be measured in terms of environmental efficiency, labour and entrepreneurial resource efficiency and the standard of living.

The figure obviously had not return to pre-crisis level. Moreover, recent commodity prices had fallen significantly which will affect Australia’s short and long term economy.

Australia has not experienced an economic recession since 1991 and China has not experienced one since 1976. However, their magnitude of growth and the causes of their longevity are different. Australia has had average annual GDP growth of 0.85% since 1959 while China has had an average annual GDP growth of 9.66% since 1989. The cause of this difference

The decline in the CAD has been affected by what is happening to the nation’s levels of saving and investment. The level of Australia’s national

All three countries took a hit to GDP growth in the 1970’s due to the oil price shocks and more recently the global financial crisis has stunted growth in the past four to five years. Both Australia and China were able to avoid falling into a recession but the United States was not so fortunate (see Figure 2).

Examine the similarities and differences between the Australian and Chinese economies Australia and China have similarities and differences in their economy. Therefore, examination is made between these two nations. Similarities and differences will be identified by GDP, GDP per capital, unemployment levels, standard of living, environmental issue, inequality and role of government. Australia and China's economy size has a vast difference. China's has a population of 1 billion people ranking (2nd) where Australia has a population of 23 million people ranking (12th).

The Chinese and Australia economies have many similarities and differences, including the size of the economies, growth rates, unemployment, inequality, standard of living, environmental issues and the roles the different governments have in influencing and modifying these factors of the economy.

The Australian exception could be related to the relative proximity of the fast growing Asian developing countries such as China which can bolster Australian’s economic activities. It could also be related to the relative good health of Australia’s financial market before the financial crisis that made it more resilient to it. Or it could also be that the Australian government’s actions were efficient at counteracting the financial

Since the financial tsunami and the bankruptcy of Lehman’s Brother in September 2008, the world’s economy took a deep plunge and the Chinese economy is no exception. In the wake of the global financial crisis, The Economist (2008) reported that China’s real GDP growth slowed to 9 percent in the third quarter of 2008 and export growth slowed to 21.1%. It was, in fact, well below analyst expectations and recent

In March 2015, Greg Jericho published an article called Weak, weak growth and six things about the state of Australia’s economy that outlined how in the past 6 out of 10 quarters the Australian

Over the past years, Australia has gone through many changes associated with their economy. In 1996, Australia was in a period of recession, but began to have economic growth in the years of 1997 through to the early 2000s. This growth was due to the weakening of the Australia dollar causing an increase in market shares for Australia exports. With the help of the decrease in prices of exports for foreign buyers, in return