Economic Conditions of the Australian Economy :: essays research papers

Economic Conditions of the Australian providenceOver the past five years the Australian parsimony has g iodine(p) through many changes experiencing both the peaks and troughs associated with business cycle. Five years ago, in the middle of 1997 Australias sparing growth had begun to upturn after a flow of recession during the 96 year. This was unmistakably shown through the composite indicators of retail trade, ingleside investment and Australian share market valuations, all concurring with one another and demonstrating the effects of an upturn in economic growth. This economic growth go along to increase through 98 and 99, partly being attributed to the weakening Australian dollar bill that allowed for the opening up and change magnitude market shares held by Australian exports on world markets. This was the case, as the reduction in the Australian dollars value, triggered decreases in the prices of our exports for foreign buyers, thereby increasing demand for our products and increasing the amount of money and investments coming into Australia. This therefore resulting in the aforesaid(prenominal) increases economic growth when combined with the high levels of employment and consumer confidence.This economic growth didnt however continue for long, with the economy peaking just before the start of the year 2000 followed by a sharp downturn that resulted in a temporal recession occurring around the middle of the year. This erratic behavior, most pronounced in retail trade, can be explained by the effects of both the millennium bug and the introduction of a general consumption tax in the form of the GST. The millennium bug caused much panic and with it bought panic disbursal especially in the IT sector thereby over inflating an already conterminous to booming economy and after the non-event that the millennium (or Y2K) bug caused spend slumped and then further slumped due to the holding back of consumer spending on well-favored ticket items such as cars and houses until the introduction of the GST.In spite of the aforementioned pre GST economic slump, in the second half of 2000, with the implementation of the GST and the advent of the Olympics, the economy quickly boomed again before experiencing another sharp downturn followed by an equally sharp upturn. The initial upturn was due to increased post GST spending followed by huge foreign cash injections into the Australian economy as a result of the Sydney Olympic Games. The Olympics spending however was only passing and consequently caused a post Olympics downturn, which was quickly countered by the introduction of the archetypal homeowners grant.