Economic Comparison Australia and Asian Economies

June 27, 2018 Education

Growth rate of all the countries show a highly fluctuating trend. australian economy has had a fairly stable economic growth over the years . This resilient economic performance owes much to the wide ranging structural reforms and improved frameworks for monetary and fiscal policies tht were implemented after australian dollar was floated in 1983 . China’s GDP growth rose steeply in the 1960’s from negative to positive and in 2005 it recorded highest GDP in all 4 countries. Taiwan’s GDP growth has been declining qver the years.

China has touched the maximum inflation levels amongst the four given countries. Australia’s inflation rate touched the maximum in 1970’s and since then a a fluctuating but declining tred is observed. Under a fixed exchange rate regime, higher world prices were transmitted to domestic prices directly and indirectly through their effects on income. This partly explains why inflation during the 1970s was higher in Australia . Taiwan expereienced a steep fall in inflation during the 1980s while hongkong experienced such a situation in 1996-1999. At a period between 1976-1979 Australia.

We Will Write a Custom Essay Specifically
For You For Only $13.90/page!


order now

China and Taiwan recorded the same money supply. it can be observerd that there have been sharp increase in money supply of all countries followed by a sudden fall. This is mainly because of monetary policies of major central banks around the world.  Agricultural contributin to economy has been the lowest in Hongkong in the four countries but it has been steady throughout the years. China’s economy has a large agricultural contribution though the focus on agriculture in recent years has been declining. Taiwan’s agriculutural sector observes a slowly decling trend over the years.

While Australia has had highs and lows in this sector but an overall declinming tred can be noticed. The industrial shares of Australia, Taiwan and Hongkong have been decresing over the years while China recorded an increase. however China’s industry sector has observed variations. China and Taiwan was the same in 1984 while Australia and Hongkong recorded same in 1992. Overall China’s manufacturing sector recorded the highest share in comparison to others. Amongst the four mentioned sector in the project service sector is the only one with rising share levels.

China has seen the highest increase in above sectors but the service sector. Australian economy recoreded a highre share of service sector than that of Taiwan upto 2000 but Taiwan recorded an increase in recent years.  Population statistics has observed less movement in Australia as compared to others while Hongkong has noticed steep increase and decrease around 1984 and 1999. The reason for the increase in population growth in Hongkong between the years 1993 to 1997 is the migration of new groups from mainland China to Hongkong .

Taiwan’s population rose once around the year 1972 and thereafter saw a continuous decline. In 2005 Taiwan observed the lowest growth. China too has seen a major change in population growth rate in 1963 thereafter it has been between 1%-3%.  Taiwan’s exchange rates have been strong in comparison to the other three countries Taiwan’s dollar had its own depriciation against the US $ during the Asian financial crisis but it strenghtened again due to the IT boom.. China’s exchange rates incresed steadily in 1980s and 1990s and then they were fairly stable.

Hongkong experieced a similsar pattern in different years. Interest rates of all the countries have seen drastic high and lows. The interest rates were reduced to a considerable extent after mid 1990s. This is because of the monetary policy of the major central banks around the world, which for a long period since 1990, was directed to maintain a low interest rate. The highest interest rates ever charged between these countries was by Australia (around 17%) at the end of 1990s.  The unemployment rates in the Greater China countires are a little similar to each other.

However Australia has had a very different pattern with some major fluctuations in the 1980s and 1990s. Hongkong has had major fluctuations over the years as well.  The current account balances of all the countries were similar tillthe mid 1970s however then thee were some diversions. Australia’s current account balance has been consistently negative. China’s current account balance went into negative too, but after the year 2000 it took a steep increase, it touched 150000 in 2004. hongkong and Taiwan just managed to remain positive.

The graph portrays that Australia has had a steady increase in trade with Taiwan with every additional year. Hongkong too has had a stable business but it has seen highs and lows. Australian trade with China has increaase tremendously over the years espcially after1996. Australia mainly exports iron ore($8902m), wool($1726m), copper ores($807m), zinc ore and concentrates($641m) to China resulting in total share of 14. 1% and total merchandise export of $23647m. Mainly education-related travel($2740m), personal travel excluding education($514m) services are provided resulting in a total share of 8. % with a total of $3930 m Australia mainly exports zinc($ 478m),crustaceans($ 383m), pearls and gems($ 187m) and aluminum($ 182m) to Hongkong resulting in total share of 1. 8% and total merchandise export of. $3035m. Mainly education-related travel($410m), transportation($315m). services are provided resulting in a total share of 3. 4%. with a total of $1591m Australia mainly exports coal($1610m),copper($870m), iron ore ($633m),aluminum ($582m). to Taiwan resulting in total share of 3. 5% and total merchandise export of. $5940m.

x

Hi!
I'm Amanda

Would you like to get a custom essay? How about receiving a customized one?

Check it out