Similarities Between India And Australia's Economy

Australia and China are two countries located in the southern and northern hemispheres respectively. They are both very important and major international exporters across the globe. Australian exports reached an all time high of A$29,970 million in February of 2014, this is a gain of A$120 million from the previous year. Australia’s natural resources are one of its main exports as Australia is so rich in its natural resources such as bauxite, coal, copper, tin, gold, iron ore, silver, uranium, tungsten, nickel, lead, zinc, diamonds, mineral sands, natural gas and petroleum.

Second, having so few employers and jobs available in Indian Country leads to high unemployment rates. And, third, the absences of thriving economies, characterized by a sufficient number of privately and publically owned businesses in Indian Country, adds to the impoverishment of Indians and their families.

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.

There are notable similarities between the two economies such as import and export partners due to the same region where both countries are located. Furthermore Australia’s GDP is significantly higher than that of Indonesia. This is also due to the fact that Australia is a developed country whereas Indonesia is an under - developed country. This would reflect the average income and hence the overall quality of life in each country which is shown in the Human Development Index, in which Australia’s HDI is 0.938 and Indonesia’s is 0.629. Additionally the life expectancy is also significantly different where Australia and Indonesia compare for 81 years to 70 years respectively (Country Economy 2013). This can relate directly to the health care system in each country as well as the social

Australians have the freedom to choose what higher education path they want to pursue either vocationally or at a university. Each university, or uni as Australians call it, has an area of specialty. Schools do not have a limited amount of students that can attend there but are encouraged to go to the school nearby. “With

This report will show an overview of the current state of the Australian economy and its management by the Federal government through examining economic indicators such as economic growth (GDP), unemployment, inflation and trade.

The culture and social customs of Indians compared to Australians is very different. Different people in different societies have different culture and food, but they also have some similarities. The culture varies in different things such as clothes, foods, religion, and many others. Not only the culture but geographical and environmental setting is also playing main role. India is the world’s second largest country after china with 1.3 billion population, while Australia is the world’s smallest continent with 24 million population. The capital of India is New Delhi which is in the northern part of India. The capital of Australia is Canberra which is in northern end of Australia which is also called southwest Sydney. India is surrounded by three oceans namely Arabian ocean(west), Indian ocean(south), Bay of Bengal(east). Australia considered to be an island because it is surrounded by Indian ocean(west), coral seas(north), Pacific Ocean(east) and Tasman sea(south) (Everyculture.com). India is more vulnerable in climate changes, in India there were three main seasons, winter runs through January and march, summer runs through April and August and monsoon runs through September and December. Meanwhile, Australia is generally warm and dry all year round, with no extreme cold and rain (Foodbycountry.com). India suffers with environmental problems like water and air pollution, land damage, and water shortage, because there are no strict rules for environmental problems. While

Employment in Australia is on the rise with most people who are willing and able to work now having the opportunity to do so. Economists consider 5% unemployment which was the value in January recorded by the Australian Bureau of Statistics. Greater number of jobs created because of factors such as the mining boom and the recovery effect in Queensland because of the floods will further lower the unemployment rate. This will have the effect of consumers having more disposable income thus requiring an increase in long term interest rates.

Economic growth measures a percentage change in the GDP of an economy over a period of time. China and Australia’s GDP growth rates are very different, China having a relatively high GDP growth rate, while Australia’s is only just between the target 2-3%. In

Unemployment: As can be seen in Fig 3 below, the unemployment rate in Australia has recently dropped below 5.8%, which is the lowest it has been for over 20 months. This is despite the economy struggling over the previous 12 months due to a fall in investment in the mining industry. This has led to the Reserve Bank of Australia (RBA) reducing interest rates on two occasions in the past 12 months to encourage the non-mining sectors of the economy to fill this void and invest in resources, but some businesses are still reluctant to spend money. NAB economist Tapas Strickland said he expected strong jobs growth to continue into 2016, stating “ The forward indicators, such as jobs ads, suggest employment growth of 2% a year, and when you do the calculations, that implies 20,000 (jobs added) per month”. (Guardian, 2015).

There is a strong relation between education and employment. At higher levels of education there is no employment gap between the indigenous and non-indigenous Australians.

In comparison to US, Australia’s structural unemployment rate is higher (Statista, 2018) that gives some ground for Australia to lower the unemployment rate from the nation (Australian Government Budget, 2004-05). Before the Second World War, the unemployment rate of Australia was only around two percent. Due to increase in working age population in Australia, along with increase in employment, unemployment rate also increases. Rapid growth in economy, trained workers, educated and skilled workers, expansion of business in country will lead to lower the unemployment rate.

An increase or decrease in the unemployment rate can have a multiple effects on the Australian economy, both beneficial as well detrimental to the economic conditions and the societal outlook.

In April 2014 the rate of unemployment was at 5.8% and in February 2015 it was measured at 6.3%. Figure 1.3 shows the unemployment rate of Australia and Korea over the last year. We can see that Koreas unemployment rate is much more erratic than Australia’s. Korea has had rapid increases followed by rapid decreases whereas Australia has had mild increases followed by mild decreases. Overall we can see that Australia’s unemployment rate is slowly rising, Korea on the other hand, the unemployment rate is unpredictable and though it has spiked to 3.8% in February 2015, it may drop just as quick the next month.

In the past quarter the unemployment rate in South Australia has remained steady at 5.6% (Australian Bureau of Statistics, 2009) but this figure is volatile and may increase next month. The youth unemployment rate, however, in South Australia remains at 21.9% with the Western and Northern suburbs having significantly higher